A non-compete agreement in Oregon can be used to prevent current and former employees from sharing information with the company’s competitors. This same agreement can also prevent current and former employees from working with competitors during and after their time with the business.
For example, this type of agreement can protect:
- Confidential professional or business information.
- This type of agreement can also protect trade secrets related to direct business interests.
- Investment in certain on-air broadcasters and customer contacts
- Any goodwill the company has shown.
Is a Non-Compete Legally Enforceable in Oregon?
Yes, non-compete agreements in Oregon are legally enforceable. There are specific criteria that have to be met. A non-compete agreement in Oregon might not be legally allowed if it does not meet these criteria. [1]
Reasonable Use and Exemptions
For a non-compete agreement in Oregon to be enforceable, it has to be provided to a potential employee at least two weeks before their term of employment begins. The employee also has to meet a minimum compensation threshold before being subjected to the terms of a non-compete agreement.
The agreement also has to be restricted in terms of time and space, and the agreement must not be unduly restrictive on the ability of the employee to earn a living. All agreements signed in Oregon cannot go against the public interest.
Non-compete agreements signed after January 1st, 2020, must be provided to the employee within 30 days of termination. They must be signed. In addition, non-compete contracts signed after January 1st, 2022, cannot be longer than 12 months.
Employees must also make more than $100,533 to be subjected to the terms of the non-compete agreement. Home healthcare workers are exempt from non-compete agreements in Oregon.
- Enforceable when terminated without cause? Not decided
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? No
Non-Compete Agreement Oregon Limitations
Some of the limitations that could be encountered when writing an Oregon non-compete agreement include the following:
Time Limitations
There is no specific limitation on the duration of a non-compete in Oregon, but it must be reasonable, given the nature of the agreement. The duration of the non-compete cannot be unnecessarily burdensome to the employee. The statute of limitations in Oregon to file a lawsuit for breach of a non-compete agreement is six years.
Geographical Limitations
No specific geographic limitations are placed on a non-compete agreement in Oregon, but it cannot be overly harsh or restrictive on the employee. If a judge believed that the geographic limitations included in the agreement were unnecessarily tricky, the agreement could be thrown out.
Oregon Non-Compete Agreement Sample
Use our Oregon non-compete agreement template, available in both Word and PDF formats, and make sure you include all necessary components:
