Oregon has enacted legislation (Senate Bill 726) that will require employers to adopt a written policy for reducing and preventing discrimination, sexual harassment, and sexual assault. The law takes effect October 1, 2020.
At a minimum, the policy must include:
· A process for an employee to report prohibited conduct;
· The identity of the individual responsible for receiving reports of prohibited conduct, including an individual designated as an alternate to receive such reports;
· The statute of limitations applicable to an employee’s right of action for alleging unlawful conduct;
· A statement that an employer may not require or coerce an employee to enter into a nondisclosure or non-disparagement agreement, including a description of the meaning of those terms;
· An explanation that an employee claiming to be aggrieved by prohibited conduct may voluntarily request to enter into a settlement, separation, or severance agreement, including a statement that explains that the employee has at least seven days to revoke the agreement; and
· A statement that advises employers and employees to document any incidents involving prohibited conduct.
The Oregon Bureau of Labor and Industries is required to make available model procedures or policies that employers may use as guidance when establishing their policy.
Employers must:
· Make their policy available to employees within the workplace;
· Provide a copy of the policy to each employee at the time of hire; and
· Require any individual who is designated by the employer to receive complaints to provide a copy of the policy to an employee at the time that the employee discloses information regarding prohibited discrimination or harassment.
Other Changes:
Nondisclosure Agreements:
Effective October 1, 2020, the law generally prohibits employers from entering into a nondisclosure or non-disparagement agreement (NDA) with an employee or prospective employee, as a condition of employment, continued employment, promotion, compensation, or the receipt of benefits, that contains provisions that prevent an employee from disclosing or discussing unlawful employment discrimination, harassment, or sexual assault. There are certain exceptions to this prohibition, such as when the employee requests a settlement agreement. For more information, see the full text of the law.
Severance Agreements:
Effective October 1, 2020, any agreement entered into between an employer and an individual with the authority to hire and fire employees, or the discretion to exercise control over employees, that requires severance or separation payments is voidable by the employer if, after the employer conducts a good-faith investigation, the employer determines that the individual violated the NDA provisions of the law or violated the employer’s discrimination, sexual harassment, and sexual assault policy and that the violations were a substantial contributing factor in causing the separation from employment.
Statute of Limitations:
The law also extends the statute of limitations on bringing an action alleging unlawful discrimination, sexual harassment, or sexual assault or alleging violations of the NDA provisions. See the text of the law for details.
Compliance Recommendations:
Oregon employers should review policies, employee agreements, and practices to ensure compliance with Senate Bill 726.
Please contact your dedicated service professional with any questions.