join our network! affiliate login  
Custom Search
GET OUR FREE EMAIL NEWSLETTERS!
Daily and Weekly Editions • Articles • Alerts • Expert Advice • Learn More

Total Articles: 2

HB 2992: Oregon’s Most Recent Attempt to Rein in Restrictive Covenants

In 2016, the White House issued a report that expressed a call to action for noncompetition reform at the state legislative level throughout our nation. Since then, many states have tinkered with their noncompetition laws in an attempt to narrowly define when and under what circumstances an employer can subject an employee to a noncompetition agreement. For example, less than a month ago Washington State enacted a law that significantly restricts noncompetition agreements with employees and independent contractors. A full summary of the new Washington law and restrictions can be found here.

Oregon Tightens Restrictions on Noncompetition Agreements

Oregon strictly regulates the use of noncompetition agreements by statute, generally limiting them to (a) exempt employees earning more than the median income for a family of four (approximately $74,000 currently), and (b) conditioning enforceability on a “bona fide advancement” or an employer informing an employee about the agreement “in a written employment offer received by the employee at least two weeks before the first day of the employee’s employment.” Even when enforceable under current law, the statute places a two-year cap on the duration of the restriction.