An Oregon non-compete agreement can be an effective tool that businesses can use to protect their confidential information. 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. Take a look at what conditions have to be met for Oregon non-compete agreements to be enforceable.
Is a Non-Compete Legally Enforceable in Oregon?
Yes, non-compete agreements in Oregon are legally enforceable. There are certain criteria that have to be met. If a non-compete agreement in Oregon does not meet these criteria, it might not be legally allowed. [1]
What’s Protected?
There are several types of information that can be protected using Oregon non-compete agreements. As an example, confidential professional or business information can be protected by this type of agreement. Trade secrets related to direct business interests can also be protected by this type of agreement. Investment in certain on-air broadcasters, as well as customer contacts, can also be protected by a non-compete agreement and Oregon. Any goodwill that the company has shown can also be protected by non-compete agreements in Oregon.
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 they can be 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 agreements 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:
Limitations on time
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.
Non-compete agreement Oregon geographical limitations
There are no specific geographic limitations 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 are unnecessarily harsh, 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:
Non-Compete Agreement
