Employers, take note: certain amendments strengthening Oregon’s existing statutory restrictions on non-compete agreements, went into effect on January 1, 2022 – as previewed in our previous blog post. Coupled with existing limitations in ORS 653.295, the newly-effective amendments mean that a non-compete entered into with an Oregon employee after January 1, 2022 will be “void” ab initio if:
- The non-compete period extends longer than 12 months;
- It applies to employees earning less than $100,533.00 in 2021 dollars adjusted for inflation;
- It was not provided in writing to a new employee at least two weeks before the employee’s first day;
- The employer did not provide the employee with a copy of the signed non-compete agreement within 30 days following the employee’s termination;
- The employee is not engaged in administrative, executive, or professional work, performing predominantly intellectual, managerial, or creative tasks; further, the employee must exercise discretion and independent judgment; and be paid on a salary basis;
- The employee does not have access to either trade secrets or sensitive confidential business or professional information; or
- The employee is employed as an on-air talent in broadcasting.
Employers of Oregon employees should take steps to ensure they do not run afoul of the above conditions. If unsure on these points, or about the reasonableness of non-competition restrictions more generally, employers should seek legal assistance.