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:
- 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;
- The employer must have a “protectable interest,” for example, trade secrets, competitively sensitive business material, etc.;
- The non-compete cannot bind the employee for more than 18 months after their termination; and
- The restrictions must be “reasonable.”
In addition, the employee:
- Must be considered an “excluded” employee, also known as a salaried employee, and
- 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.
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