Are Employee Non-Compete Agreements Enforceable in Oregon?

The following articles only apply to non-compete clauses or agreements in the context of an employee-employer relationship. Non-compete clauses between businesses or business owner outside the employment context are generally subject to general contract law.

In Oregon, to be enforceable, a non-compete clause or agreement must meet all of the following requirements:

  1. It must be presented to the employee at least 14 days prior to the employee’s first day or upon a subsequent “bona fide advancement” which means a legitimate promotion or raise;
  2.  The employer must have a “protectable interest,” for example, trade secrets, competitively sensitive business material, etc.;
  3.  The non-compete cannot bind the employee for more than 18 months after their termination; and
  4.  The restrictions must be “reasonable.”

In addition, the employee:

  1. Must be considered an “excluded” employee, also known as a salaried employee, and
  2. Must have a gross salary and commissions of more than the median family income for a four-person family. As of April 30, 2018, this is  $90,332 in Oregon.

If all of these requirements are not met, the non-compete clause or agreement is not enforceable against the employee.

Click here to purchase our Oregon Employee Non-Compete Agreement.

Contact us if you have any questions or would like a custom Oregon Employee Non-Compete Agreement drafted.

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