An Oregon Non-Compete Agreement is a legal document used to protect employers from the disclosure of confidential business information to competitors.
This agreement can also restrict employees from working with rivals during and after their employment with the company, which helps to safeguard against the loss of trade secrets, customer data, and investments.
By implementing a non-compete agreement, the employer can maintain their reputation and goodwill while protecting their sensitive business information.
Reasonable Uses and Objections
- 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.
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 per Or. Rev. Stat. § 653.295.
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 1, 2020, must be provided to the employee within 30 days of termination. They must be signed. In addition, non-compete contracts signed after January 1, 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.
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.
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.
Use our Oregon non-compete agreement template, available in both Word and PDF formats, to make sure you include all necessary components: