ORS 659A.370 does not ban all nondisclosure agreements. (2) Which NDAs are Unlawful Under Oregon Law? Remedies for violations include economic damages, noneconomic damages, and costs and attorney fees. This statute will apply broadly in many situations given the identified statutes, which cover many common issues with unlawful employment-related discrimination, retaliation, and aiding & abetting ( e.g., age, gender, sex, race, religion, disability, uniformed service, etc.).Įmployees aggrieved by unlawful NDAs have private claims against noncomplying employers. This includes disclosure or discussion of legally prohibited forms of discriminatory harassment. ORS 659A.370 makes it an unlawful employment practice for any employer to enter into any NDA that has "the purpose or effect" of preventing "disclosing or discussing" conduct that constitutes discrimination under ORS 659A.030, 659A.082, 659A.112. (2) ORS 659A.370 Bans NDAs That Cover Up Employment-Related Discrimination Employees and employers alike should be extremely careful regarding this statute because it contains important rights and obligations! ORS 659A.370 promotes transparency and accountability in employment contracts, severance agreements, and settlement agreements.Īs of this article's last update, there have not been any court opinions interpreting ORS 659A.370. Oregon's statute prevents employers from proactively or retroactively using NDAs to cover up information relating to employment-based discrimination, harassment, and retaliation. Employees must carefully review employer-proposed NDAs and, where appropriate, actively negotiate these agreements to protect important rights. ORS 659A.370 has immediate implications for many pre and post-employment nondisclosure agreements, including clauses in severance agreements, employment contracts, and confidentiality agreements. (1) Introduction to Oregon's New Nondisclosure Agreement Statute Oregon's new law is part of a national trend to prevent employers from imposing overly broad NDAs. Oregon's new Nondisclosure Agreement (NDA) is codified at ORS 659A.370 ("Employer prohibited from entering into agreements that prevent employee from discussing certain unlawful conduct exceptions remedies") Senate Bill 726 (2019 Regular Session).
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