Portland, Ore. (December 29, 2021) - It's the end of the year, which, for employers, means it's time to look at what new laws and updates are going into effect that will be important to know. Oregon has seen a number of new employment laws passed in the last year. Below are a few that every employer in the Beaver State should be aware of.

New Non-Compete Agreement Restrictions

Effective January 1, 2022, additional requirements will be imposed to all non-compete agreements. Senate Bill 169, passed this year, amends ORS § 653.295 and imposes new restrictions required to all non-compete agreements entered into after January 1. The five new updates impact notice required, salary thresholds, duty thresholds, protectible business interests, and the scope of the restrictions. Non-compliance with any of the below requirements makes non-compete agreements void and unenforceable. Previously the agreements were voidable by the court, but not automatically void.

Notice

A notice requirement will be imposed both before and after employment. Two weeks before the employees first day, the employee must have written notice that a non-competition agreement is required as a condition of employment. Additionally, after termination the employer must provide a copy of the signed non-compete agreement within 30 days of the employee's termination.

Salary Threshold

The employee signing the non-compete must meet the minimum salary threshold. The total amount of the employee's annual gross salary and commissions at the time of the employee's termination must exceed $100,533. This amount will be adjusted annually for inflation pursuant to the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor immediately preceding the calendar year of the employee's termination.

Duty Threshold

A non-compete agreement may only be applied to individuals engaged in administrative, executive, and professional work who perform predominantly intellectual, managerial, or creative tasks; they must exercise discretion and independent judgment; and be paid on a salary basis.

Protectible Business Interest

The employee must have access to either 1) trade secrets or 2) sensitive confidential business or professional information, that otherwise would not qualify as a trade secret, including product development plans, product launch plans, marketing strategy, and sales plans, or 3) is employed as an on-air talent by an employer in the business of broadcasting.

Scope Time and Geography

The agreement may not exceed 12 months. If the agreement exceeds this time, the remainder of term in excess is void and may not be enforced. As before, geography will be restricted to a geographic area and specified activities, all of which are reasonable in relation to the services performed by the employee.

Oregon CROWN Act Amends Oregon Discrimination Laws

Effective January 1, 2022, under Oregon's new CROWN Act, employers will be banned from discriminating against hairstyles associated with race. The term CROWN Act stands for "creating a respectful and open world for natural hair." ORS 659A.030 already prohibited discrimination based on race but House Bill 2935 clarifies the meaning of race to include "physical characteristics that are historically associated with race including but not limited to natural hair, hair texture, hair type and protective hairstyles." A protective hairstyle are defined as a "hairstyle, hair color or manner of wearing hair that includes, but is not limited to, braids, regardless of whether the braids are created with extension or styled with adornments, locs and twists."

House Bill 2935 is one of several similar acts that have passed across the nation after news stories spread regarding high schoolers who were excluded from sports due to their hair style. For example, on March 4, 2021, a Parkrose High School volleyball player was forced to remove her beads from her hair in order to play.

Valid dress codes policies may still be enforced as long as the employer provides, on a case-by-case basis, reasonable accommodation of an individual based on the health and safety needs of the individual "and the dress code policy does not have a disproportionate adverse impact on members of a protected class to a greater extent than the policy impacts persons generally." Employers with grooming and dress code policies should review such policies before the new year to assure the policies do not run afoul of Oregon's new CROWN Act, and further should provide trainings to managers regarding the new law.

Healthcare Discrimination Law Updates from 2021

Oregon Clarifies Gender Identity as a Protected Class

House Bill 3041 broadens Oregon's state statutes to include "gender identity" to all Oregon laws that use "sexual orientation" in the text of the law. This includes Oregon's housing, employment, public accommodation, education, healthcare, and law enforcement profiling laws. Gender identity, is defined as "an individual's gender-related identity, appearance, expression or behavior, regardless of whether the identity, appearance, expression or behavior differs from that associated with the gender assigned to the individual at birth." This bill was declared an emergency and passed immediately upon signing on June 23, 2021.

Oregon Prohibits Discrimination in Healthcare Setting

SB 567 prohibits the denial of medical treatment or restriction of allocation of medical resources to patients. The bill clarifies that healthcare providers in Oregon cannot deny medical treatment or limit the amount of medical resources based on a patients race, color, national origin, sex, sexual orientation, gender identity, age, or disability. The new requirement is intended to prevent discrimination towards those who might be de-prioritized for life saving resources based on a protected class. This bill was declared an emergency and passed immediately upon signing on July 19, 2021. All healthcare providers should review their internal policies to ensure they comply with the new requirement.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.