Know Your Oregon Workplace Fairness Act Rights
The Oregon Workplace Fairness Act gives employees powerful protections, and most workers have never heard of it.
If your employer has handed you a settlement or severance agreement after you raised a discrimination or harassment complaint, there's a good chance that agreement contains provisions that are illegal under Oregon law. Here's what you need to know before you sign.
The act places strict limits on what employers can include in settlement and separation agreements with workers who have raised discrimination claims. The law covers workplace discrimination based on race, sex, religion, national origin, disability, age, sexual orientation, and more.
The core principle is simple: your employer cannot use a settlement agreement to silence you, disparage you, or push you out permanently.
Prohibited Terms
When you've raised a discrimination or harassment claim, your employer is prohibited from including these provisions in any settlement agreement unless you specifically ask for them:
Non-Disclosure and Non-Disparagement Clauses. Your employer cannot require you to stay silent about the discriminatory or harassing conduct you experienced. You retain the right to talk about what happened to you with family, friends, future employers, or government agencies like BOLI or the EEOC. A broad gag clause covering the conduct underlying your claim is unlawful.
Confidentiality of the Settlement Itself. Your employer cannot require you to keep secret either the fact that a settlement was reached or the amount you were paid. Oregon closed this loophole in 2023.
No-Rehire Provisions. Your employer cannot bar you from future employment with the company as a condition of settlement. If you want to move on, that's your choice, but it’s not something that can be imposed on you.
The Exception: It’s Up to You
The law doesn't eliminate these potential terms, it prohibits employers from demanding them. If you decide you want confidentiality or a clean break with a no-rehire clause, you can still request them. Critically, an employer cannot make their settlement offer conditional upon you requesting these terms. Using that kind of pressure is itself a violation of the law.
What Happens If an Employer Violates the OWFA?
Prohibited provisions are void and unenforceable even if you signed them. You can also sue for damages, a civil penalty of up to $5,000, and attorney's fees.
Settlement agreements are legally binding and often one-sided as drafted. An experienced employment attorney can identify illegal provisions, assess whether the offer fairly reflects the value of your claims, and negotiate better terms.
Munsinger Law represents employees in Oregon and Washington. Learn more about us at www.munsinger.law.