3. Subsections 1 and 2 of this section apply only to non-competitive agreements made in the context of an employment relationship or contract, and not for other purposes. Employers with workers residing in Oregon should consider not only adopting a policy that, at the end of each worker, makes its non-competitors available to all workers, but also an inventory of existing competition agreements and introducing strict guidelines for the maintenance and monitoring of these agreements. Employers who have competitive contracts in Oregon and Washington should take note of the changes made by the legislature in both states. Non-competition agreements are restrictive agreements that, in themselves, may be included in an agreement, but are generally part of a broader agreement on employment or secrecy. These agreements, which limit a worker`s ability to cooperate with a competing company of services or products similar to those of his former employer or the sale of similar products, are generally promoted as trade restrictions. 2. The duration of a competition agreement may not exceed 18 months from the date of the worker`s dismissal. The remainder of an 18-month competition incapacity agreement is null and void and cannot be enforced by a state court. James Barrett represents private and public employers in all aspects of employment disputes. He has defended clients against individual and class actions involving wage and hourly disputes, drug testing, denunciations, discriminatory actions and reprisals. He also successfully obtained termination actions to impose competition contracts against a client`s former employees.
As a reminder, the restrictions of ORS 653.295, including the new termination obligation imposed by HB 2992, do not apply to all types of restrictive agreements. The law applies only to „non-competition agreements“ which are defined as agreements „under which the worker accepts that the worker, alone or as an employee of another person, will not compete with the employer for the provision of products, processes or services similar to the products, processes or services provided by the employer.“ The law does not apply to confidentiality agreements or an „agreement not to recruit employer staff or to recruit or do business with employer clients.“ Other existing restrictions under ORS 653.295 are as follows: the longest enforceable period of a non-competition agreement under ORS 653.295 is 18 months from the date of separation, and a non-compete agreement is only enforceable for (1) workers who are exempt from the minimum wage and overtime under Oregon law (p.B managers , executives, employees); (2) workers who have access to a „protective interest“ of the employer (for example. Access to trade secrets or competitive trade information; and (3) workers whose annual salary and commissions, at the time of separation, exceed the average income of a family of four set by the United States Office. We are available to you for matters relating to non-compete agreements, employment contracts or other employment issues. While this is a positive decision for Oregon businesses, especially for companies for which customer lists are particularly important, employers should remain vigilant when it comes to proprietary information and review their policies and agreements on employee access and use of this information. (a) bonus limitation agreements, which are legitimate agreements that can be enforced by the state`s courts; or (a) the employer informs the worker, in a written offer of employment, that the worker receives at least two weeks before the first working day, that a competitive incapacity agreement is required as a condition of employment; or (B) the out-of-competition agreement is entered into for the employer to further in good faith the worker;; On May 14, 2019, Oregon Governor Kate Brown signed the House Bill (HB) 2992, the