Since October 1, 2020, Oregon employers have operated under the Workplace Fairness Act (“OWFA”), which restricts employers from including confidentiality, non-disparagement, and no-rehire provisions in settlement agreements and separation agreements unless the employee specifically requests them. In March 2022, Governor Kate Brown signed Senate Bill 1586 into law, which amends the OWFA effective January 1, 2023, and clarifies many of the provisions of the original OWFA.

Changes and Clarifications to OWFA

The OWFA amendments clarify that:

• An employer that enters into a separation or severance agreement with an employee who has not alleged a claim of discrimination under ORS 659A.030, ORS 659A.082, or 659A.112 is not restricted from including confidentiality, non-disparagement, and no-rehire provisions. For example, employers and employees resolving a wage claim, but not alleged discriminatory conduct, may include such provisions if desired.
  
• The restrictions prohibiting confidentiality, non-disparagement, and no rehire provisions apply to agreements with former employees (as well as agreements with current and prospective employees).
  
• The restrictions are now expanded to include confidentiality about the amount of or fact of any settlement, unless the employee requests such confidentiality. Prior to the amendment, the OWFA provided that a confidentiality provision “that prevents the disclosure of factual information relating to a claim of discrimination or conduct that...

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