Oregon Non-Compete Agreement for Employees: A Comprehensive Understanding In Oregon, a non-compete agreement is a legal contract entered into between an employer and an employee to restrict the employee from engaging in certain competitive activities after termination of their employment. These agreements aim to protect the employer's proprietary information, trade secrets, and goodwill. The Oregon law regarding non-compete agreements has recently undergone significant changes to ensure fair practices and protect employees' rights. As of January 1, 2020, the new law provides guidelines and limitations on the enforceability of non-compete agreements, primarily focusing on the duration, geographic scope, and the type of employees covered. Types of Oregon Non-Compete Agreements for Employees: 1. Full Non-Compete Agreements: These agreements seek to prohibit employees from engaging in any competitive activities, either directly or indirectly, within a specific geographical area for a specified duration, after their employment ends. These agreements typically apply to employees with access to trade secrets, confidential information, or having managerial or executive positions. 2. Partial Non-Compete Agreements: Partial non-compete agreements restrict employees from engaging in specific competitive activities within a particular industry or specific job roles, instead of a complete ban. These agreements are usually sought for employees whose roles involve a lesser risk of disclosing or misusing trade secrets. 3. Time-Restricted Non-Compete Agreements: Time-restricted non-compete agreements prohibit employees from joining a competitor or starting a competing business for a specific duration. Typically, these agreements are enforceable for a limited period, commonly ranging from six months to two years, depending on the circumstances and the nature of employment. 4. Geographic-Specific Non-Compete Agreements: These agreements restrict employees from working for a competitor or establishing a competing business within a specific geographic location or area. The geographic scope in such agreements is crucial for enforcing the restrictions and must be reasonable and closely tied to the employer's business interests. Key Considerations for Oregon Non-Compete Agreements: 1. Reasonableness: Oregon law stipulates that non-compete agreements must be reasonable, geographical scope, and necessary for protecting legitimate business interests. Overly broad or unreasonable restrictions may render the agreement unenforceable. 2. Notice Requirement: Employers are now obligated to provide a written copy of the non-compete agreement to the employee within 30 days from the date of termination of employment. If the agreement is not timely provided, it may be deemed void. 3. Compensation: Consideration, such as additional compensation or benefits, must be provided to the employee in exchange for their agreement to abide by the non-compete restrictions. Continued employment alone cannot serve as sufficient consideration. 4. Exclusions: The new law explicitly exempts various categories of employees from non-compete agreements, including hourly employees, those terminated without cause, workers under the age of 18, and employees engaged in certain professions like journalists, broadcasters, pharmacists, and lawyers. In conclusion, Oregon's non-compete agreements for employees have witnessed significant revisions to protect employees' rights and promote fair and reasonable practices. Understanding the various types of agreements and the specific requirements under Oregon law can help both employers and employees navigate this legal landscape effectively.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.