State of Oregon Non Compete Agreement

As the economy and job market continue to evolve, employers are becoming increasingly interested in protecting their intellectual property and trade secrets. One way to do this is through the use of non-compete agreements. In the state of Oregon, these agreements have been in the spotlight in recent years, with both legal and political developments.

First, it`s important to understand what a non-compete agreement entails. Essentially, it`s a contract between an employer and employee that prohibits the employee from working for a competing business for a certain period of time after leaving their current employer. This is intended to prevent the employee from using their knowledge of the company`s trade secrets or customer relationships to gain an advantage in their new role.

In Oregon, there has been significant debate over the enforceability of non-compete agreements. In 2018, a new law was passed that made it more difficult for employers to require their employees to sign such agreements. Specifically, the law limits the types of employees who can be subject to non-compete agreements. Those who earn less than the median family income for a family of four in Oregon (currently around $58,000) are exempt, as are employees who are terminated without cause.

The law also requires employers to provide their employees with a copy of the non-compete agreement at least two weeks before the employee`s first day of work. This gives the employee time to review and consider the agreement before signing it. And if an employee does sign a non-compete agreement, the employer must provide them with a written explanation of their right to consult with an attorney before doing so.

Despite these legal protections for employees, some employers still attempt to enforce overly broad or unfair non-compete agreements. In 2020, the Oregon Attorney General`s office sued a company for requiring its low-wage employees to sign agreements that prohibited them from working for any competing business in the country for 18 months after leaving their job. The Attorney General argued that these agreements violated Oregon`s minimum wage laws and unfairly restricted the employees` job opportunities.

In conclusion, the state of Oregon has taken steps to limit the use of non-compete agreements and protect employees from unfair restrictions. As an editor with SEO expertise, it`s important to keep up with these developments in order to provide accurate and relevant information to readers searching for information on the topic. And for employers considering the use of non-compete agreements, it`s crucial to consult with legal counsel to ensure that any agreements are both enforceable and fair to employees.