Employees in Oregon are considered “at-will” employees, meaning that the employee can be terminated without warning, at any time, and for any reason or no reason at all.
Here is what you need to know about Oregon At-Will Employment.
Oregon At-Will Employment
At-will employment is the principle that an employee may generally be terminated without warning, at any time, and for any reason or no reason at all. There are some instances / reasons, however, in which terminating an employee is illegal.
Employees may also resign without warning, at any time, and for any reason or no reason at all.
Is Oregon an At-Will State?
Yes, Oregon is an At-Will Employment state.
Exceptions to Oregon At-Will Employment
While the purpose of at-will employment is to give employers maximum power over who they employ, there are certain instances in which termination is not allowed.
For starters, at-will employment does not apply if there is a contract or another law that states otherwise.
Oregon employers also may not fire or let employees go because of discriminatory reasons. As such, employees may not be terminated because of their:
- Age/Sex/Pregnancy/Sexual Orientation
- Race/Color
- Criminal History
- Religion/Creed
- Disability
- Activities
- National Origin
- Marital Status
- Outside-of-Work Political Activities
- Other Unlawful Outside-of-Work Activities
How Companies Can Maintain the At-Will Relationship with Employees
Managers should consider taking the following actions, which can help maintain a positive at-will employment relationship with employees:
- Include provisions for at-will employment in relevant company policies, or in handbooks / manuals
- Establish your right to modify, abolish, or substitute policies at the employer’s discretion with or without notice
- Verbally explain upon hire that employment is at-will and that employers and employees may terminate the employment relationship at any time, for any reason, with or without notice
- It is best to state that no other agreement or assurance has been made during the recruiting or hiring process
Oregon At-Will Employment Policy Examples
Oregon Boli recommends employers, at minimum, include the excerpts below in their employment policies / handbooks. The first excerpt covers at-will employment, while the second covers the employer's right to modify, abolish, or substitute policies at the employer’s discretion with or without notice:
Policy Excerpt One: "We reserve the right to employ at will. This means that employment can be terminated, with or without cause, and with or without notice, at any time, at the option of the company or at the option of the employee."
Policy Excerpt Two: "These policies are not to be construed as a contract of employment. We expressly reserve the right to change, add to, or delete policies at any time. Changes will be effective on dates determined by the company, and you may not rely on policies that have been superseded. No supervisor or manager other than our <title>, <name>, has authority to alter the policies, and all such changes must be in writing."
Compliance Tips for Terminating Employees
Documentation is very important when it comes to disciplinary actions or the discharge of an employee.
It is best to keep documentation of performance issues, progressive discipline reports, performance evaluations, investigation reports, and corrective actions taken against the employee in the past.
During investigations, consider the nature of the offense and how it may be unrelated, or related, to previous offenses. Employers should ask themselves "Did the employee violate a rule or commit misconduct?" and / or "Is there a business-centered, financial incentive to let this employee go", and go from there before terminating an employee.
In addition to at-will employment, businesses should ensure they understand Oregon Final Paycheck Law as well, before terminating any employees. Employers should also ensure that all earned wages are paid out. Employers should review Oregon Minimum Wage to ensure employees are being compensated properly.
Employers should also ensure that any necessary actions are taken regarding employee benefits upon termination. For instance, all employers in Oregon must offer retirement plans or OregonSaves, and must distribute assets from a terminated retirement plan as soon as administratively feasible.
Get Help with Oregon Compliance
Oregon At-Will Employment can cause some headaches and challenges for businesses, and if your business struggles with at-will employment or has had issues terminating employees in the past, you are not alone.
An Oregon payroll and HR company may be able to help. If you are having trouble with anything relating to Oregon compliance, or Oregon Labor Laws, contact us today and find out why hundreds of companies in Oregon trust GNSA for their payroll and HR needs.
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