Can I require employees to sign non-compete agreements in Oregon? What are the requirements?

Non-Compete Agreements in Oregon

In Oregon, non-compete agreements are generally unenforceable unless they meet certain requirements.

Requirements for Enforceable Non-Compete Agreements

To be enforceable, a non-compete agreement in Oregon must meet the following requirements:

• The employee must be exempt from minimum wage and overtime requirements under state and federal law ^[1.8].
• The agreement must be in writing and signed by both the employer and the employee ^[1.8].
• The agreement must be entered into at the beginning of employment or as part of a bona fide advancement ^[1.8].
• The agreement must be reasonable in duration, geographic scope, and job restrictions ^[1.8].

Unenforceable Non-Compete Agreements

Non-compete agreements that do not meet the above requirements are generally unenforceable in Oregon. Additionally, non-compete agreements are unenforceable for certain types of employees, including:

• Hourly employees ^[1.8].
• Employees who are terminated without cause ^[1.8].
• Employees who are laid off ^[1.8].
• Employees who are not exempt from minimum wage and overtime requirements ^[1.8].

It is important to note that the enforceability of non-compete agreements can be a complex legal issue and may depend on the specific circumstances of each case. It is recommended that employers consult with a qualified attorney to ensure that their non-compete agreements comply with Oregon law.

Jurisdiction

Oregon

• Labor