Oregon employment contract template

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How Oregon employment contract Differ from Other States

  1. Oregon law prohibits non-compete agreements for most employees earning less than median family income, unlike some states with fewer restrictions.

  2. Employers in Oregon must provide detailed wage and hour information and comply with state-specific sick leave laws.

  3. Oregon protects whistleblowers more broadly, offering legal protections employees may not enjoy in other states.

Frequently Asked Questions (FAQ)

  • Q: Is an employment contract required in Oregon?

    A: No, written contracts are not required by law; however, they are strongly recommended to clarify terms.

  • Q: Are non-compete clauses enforceable in Oregon?

    A: Only under strict conditions. Non-competes are not valid for most employees earning below a certain wage threshold.

  • Q: Does Oregon require paid sick leave in employment contracts?

    A: Yes. Employers with at least 10 employees must provide paid sick leave under Oregon state law.

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Oregon Employment Contract

This Employment Contract (the “Agreement”) is made and effective as of [Date], by and between [Company Name], a [State] [Legal Entity Type] with its principal place of business at [Company Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Address] (“Employee”).

1. Basic Information

  • Employer:
    • Company Name: [Company Name]
    • Legal Entity Type: [Legal Entity Type] (e.g., Corporation, LLC)
    • Address: [Company Address]
    • Contact Information: [Company Contact Information] (e.g., HR Department)
  • Employee:
    • Full Legal Name: [Employee Full Legal Name]
    • Address: [Employee Address]
    • Contact Details: [Employee Contact Details]
    • Social Security Number: [Employee SSN] (Optional - only if absolutely necessary and legally compliant)

2. Job Description

  • Job Title: [Job Title]
  • Duties: [Detailed Description of Job Duties]
  • Reporting Structure: Employee will report to [Reporting Manager Name/Title].
  • Work Location:
    • Option A: Primary place of work will be at [Work Location Address].
    • Option B: Employee may work remotely or in a hybrid arrangement as agreed upon with their manager. Details of the remote work policy are outlined in the Employee Handbook.

3. Type of Employment

  • Option A: Full-Time
  • Option B: Part-Time
  • Option C: Temporary
    • Temporary Employment Period: [Start Date] to [End Date]
  • Option D: Seasonal
    • Seasonal Employment Period: [Start Date] to [End Date]
  • Option E: Internship
    • Internship Period: [Start Date] to [End Date]
  • Option F: Contractor (Note: This requires a separate Independent Contractor Agreement and careful consideration of Oregon's requirements for contractor classification.)

4. Exempt or Nonexempt Classification

  • Option A: Exempt
    • Employee is classified as exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA) and Oregon wage and hour laws because [Reason for Exemption - e.g., meets the requirements for the Administrative Exemption].
  • Option B: Nonexempt
    • Employee is classified as nonexempt from overtime pay requirements under the Fair Labor Standards Act (FLSA) and Oregon wage and hour laws.

5. Term of Employment

  • Option A: At-Will Employment
    • Employment with Employer is at-will, meaning that either Employee or Employer may terminate the employment relationship at any time, with or without cause or advance notice. This at-will employment relationship does not alter the Employee’s rights under Oregon law, including, but not limited to, prohibitions on termination for discriminatory reasons, in retaliation for exercising statutory rights, or in violation of public policy.
  • Option B: Fixed-Term Employment
    • The term of employment shall commence on [Start Date] and shall continue until [End Date], unless sooner terminated as provided in this Agreement.
    • Renewal/Extension: [Terms for Renewal or Extension of Fixed Term]
    • Performance Evaluation Criteria: [Criteria for Performance Evaluation during the Term]
    • Probationary Period:
      • Option 1: The first [Number] days of employment shall constitute a probationary period.
      • Option 2: No probationary period.

6. Compensation and Benefits

  • Compensation:
    • Option A: Salary
      • The Employee's annual salary will be [Salary Amount], payable [Payment Frequency - e.g., biweekly, monthly].
    • Option B: Hourly Wage
      • The Employee's hourly wage will be [Hourly Wage Amount], payable [Payment Frequency - e.g., biweekly].
    • Payment Schedule and Method: Employee will be paid [Payment Schedule] via [Payment Method - e.g., direct deposit, check].
    • Deductions and Withholdings: All applicable federal, state, and local taxes and other authorized deductions will be withheld from Employee's compensation.
    • Wage Increases/Bonuses:
      • Merit/Annual Review: Employee's compensation will be reviewed periodically, and any increases will be at the Employer's discretion.
      • Bonus Potential: Employee may be eligible for a bonus based on [Bonus Criteria]. The terms and conditions of any bonus plan will be provided separately.
    • Commissions/Incentive Pay:
      • Option A: Employee is eligible to receive commissions as outlined in the attached Commission Plan.
      • Option B: Employee is not eligible to receive commissions.
  • Benefits:
    • Health Insurance: [Details of Health Insurance Coverage - e.g., Medical, Dental, Vision]
    • Retirement Plan: [Details of Retirement Plan - e.g., 401(k), OregonSaves]
    • Paid Time Off (PTO):
      • Vacation: [Details of Vacation Policy - e.g., accrual rate, usage rules, carryover]
      • Holidays: Employee will be entitled to [Number] paid holidays per year, as designated by the Employer.
      • Sick Leave: Employee will accrue sick leave in accordance with Oregon law, currently at a rate of at least one hour for every 30 hours worked, and may use accrued sick leave for qualifying reasons. Refer to the Employee Handbook for detailed information on accrual, usage, and carryover.
    • Family and Medical Leave: Employee may be eligible for leave under the Oregon Family Leave Act (OFLA) and the Family and Medical Leave Act (FMLA).
    • Short-Term Disability Insurance: [Details of Short-Term Disability Coverage]
    • Long-Term Disability Insurance: [Details of Long-Term Disability Coverage]
    • Other Fringe Benefits: [List Other Benefits - e.g., Tuition Reimbursement, Commuter Benefits]

7. Hours of Work

  • Workweek Schedule: Employee's regular work schedule will be [Days of the Week], from [Start Time] to [End Time].
  • Meal and Rest Periods: Employee is entitled to a 30-minute unpaid meal break for shifts over six hours and a 10-minute paid rest break for every four hours worked, in accordance with Oregon law.
  • Timekeeping Requirements: Employee is responsible for accurately recording all hours worked using [Timekeeping System].
  • Overtime Approval: All overtime work must be pre-approved by [Manager/Supervisor].
  • Attendance and Punctuality: Employee is expected to maintain satisfactory attendance and punctuality.
  • Dress Code: Employee is expected to adhere to the company's dress code, as outlined in the Employee Handbook.
  • Company Policies: Employee is expected to comply with all company policies, as outlined in the Employee Handbook.

8. Intellectual Property and Confidentiality

  • Nondisclosure and Non-Use: Employee agrees to hold all confidential information of Employer in strict confidence and not to use it for any purpose other than in connection with Employee's work for Employer.
  • Return of Property: Upon termination of employment, Employee will immediately return all Employer property, including documents, data, and equipment.
  • Ownership of Inventions: All inventions, works, and developments made by Employee during employment with Employer, related to Employer's business, shall be owned by Employer, subject to Oregon's restrictions on IP assignment where applicable.
  • Option A: Intellectual Property Agreement: The terms and conditions of intellectual property ownership are further defined in the attached Intellectual Property Agreement.
  • Option B: No separate Intellectual Property Agreement.

9. Restrictive Covenants (Note: Enforceability of these clauses in Oregon is strictly limited by statute.)

  • Option A: Non-Competition (Consult with legal counsel. Enforceability is difficult in Oregon.)
    • Employee agrees that during employment and for a period of [Number] months following termination of employment, Employee will not engage in any business that competes with Employer within a [Geographic Area].
    • Separate Consideration: The Employer provides separate consideration for this non-competition agreement in the amount of [Dollar Amount].
    • Notice Requirement: The Employer provided written notice of this non-competition agreement to the employee at least two weeks before the employee's first day of employment.
    • Salary Threshold: The employee's earnings, as defined by ORS 653.005, exceed the amount established pursuant to ORS 653.005 (11).
  • Option B: Non-Solicitation
    • Employee agrees that during employment and for a period of [Number] months following termination of employment, Employee will not solicit any employees of Employer to terminate their employment.
  • Option C: Customer Non-Solicitation
    • Employee agrees that during employment and for a period of [Number] months following termination of employment, Employee will not solicit any customers of Employer with whom Employee had contact during employment.
  • Option D: No Restrictive Covenants.

10. Termination

  • Resignation: Employee must provide Employer with [Number] days' written notice of resignation.
  • Involuntary Termination:
    • Option A: Employer may terminate Employee's employment at any time, with or without cause.
    • Option B: Employer may terminate Employee's employment for cause. "Cause" shall mean [Definition of Cause].
  • Severance:
    • Option A: Upon termination of employment under certain circumstances, Employee may be eligible for severance benefits as outlined in the company's Severance Policy.
    • Option B: Employee will not be eligible for any severance benefits upon termination of employment.
  • Final Wage Payment: Employer will pay Employee all wages earned and unpaid at the time of termination by the next regular payday, or sooner as required by Oregon law.
  • Right to Statement of Reasons: Employee has the right to request a written statement of the reasons for termination within a reasonable time after termination, as provided by Oregon law.
  • COBRA/State Continuation: Employee will be provided with information regarding continuation of health insurance coverage under COBRA or Oregon law.

11. Dispute Resolution

  • Option A: Mediation
    • Any dispute arising out of or relating to this Agreement shall be resolved through mediation in [County Name] County, Oregon.
  • Option B: Arbitration
    • Any dispute arising out of or relating to this Agreement shall be resolved through binding arbitration in [County Name] County, Oregon, in accordance with the rules of the American Arbitration Association.
  • Option C: Court Litigation
    • Any dispute arising out of or relating to this Agreement shall be resolved in the state or federal courts located in [County Name] County, Oregon. Employee consents to the jurisdiction of such courts.
  • Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon, without regard to its conflict of laws principles.

12. Compliance with Laws

  • Anti-Discrimination: Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, age, disability, marital status, veteran status, genetic information, or any other status protected by law.
  • Equal Employment Opportunity and Anti-Harassment: Employer maintains a strict policy prohibiting harassment and discrimination in the workplace.
  • Compliance with Oregon Leave Laws: Employer complies with all applicable Oregon family, parental, domestic violence, and sick leave statutes.
  • Wage Transparency: Employer will not discharge, discriminate against, or otherwise retaliate against employees who discuss or inquire about their own or another employee’s wages.

13. Workers' Compensation and Workplace Safety

  • Workers' Compensation Insurance: Employer maintains workers' compensation insurance as required by Oregon law.
  • Workplace Safety: Employer is committed to providing a safe and healthy work environment in compliance with OSHA and Oregon OSHA standards.
  • Reporting of Injuries: Employee is required to report any workplace injuries to Employer immediately.
  • Employee Responsibility: Employee is responsible for complying with all safety policies and procedures.

14. Other Provisions

  • Acknowledgment of Employee Handbook: Employee acknowledges receipt of the Employee Handbook and agrees to be bound by its terms.
  • I-9 Verification: Employee must provide documentation establishing identity and eligibility to work in the United States as required by federal law.
  • Background Check:
    • Option A: Employment is contingent upon successful completion of a background check.
    • Option B: No background check required.
  • Drug and Alcohol Policy: Employee is expected to comply with Employer's Drug and Alcohol Policy, which complies with Oregon's recreational marijuana laws.
  • Update of Information: Employee is responsible for promptly notifying Employer of any changes to their personal or contact information.
  • Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
  • Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
  • Amendment: This Agreement may be amended only by a written instrument signed by both parties.
  • Assignment: This Agreement may not be assigned by Employee without the prior written consent of Employer.
  • Acknowledgment of Receipt of Required Notices: Employee acknowledges receipt of all required state-provided notices/statements (e.g., Oregon New Hire Notice, Sick Leave Notice, Paystub Rights).

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.



____________________________

[Company Name]

By: [Name of Authorized Representative]

Title: [Title of Authorized Representative]



____________________________

[Employee Full Legal Name]

Employee Signature

Date: [Date]

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