Non Compete Agreement Enforceable In Oregon

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. On May 14, 2019, Oregon Governor Kate Brown signed House Bill (HB) 2992, which imposes a new burden on employers who want enforceable non-compete agreements with their Oregon employees. For all non-compete agreements concluded on January 1, 2020 or after January 1, 2020, employers must provide workers with a signed written copy of the non-competition conditions within 30 days of the termination of the employment relationship. On May 14, 2019, Oregon Governor Kate Brown, who signed HB 2992, requires an employer, as of January 1, 2020, to have a dismissed worker submit to a signed written copy of his non-compete commitment within 30 days of his termination date. Otherwise, the Oregon State Agreement will be non-applicable and non-applicable. (a) “bonus restriction agreement”: a written or oral, explicit or tacit agreement between the employer and the worker, according to which: employers based in Oregon should consider not only granting each worker its non-compete agreement upon termination of the activity, but also establishing an inventory of existing non-competition agreements and imposing strict guidelines for the maintenance and monitoring of these agreements. Since “cessation” involves voluntary dismissal, i.e. resignation, the new law offers more creative employees a near-complete end to their non-competition agreements.

In theory, such an employee could resign, then ask for some time for review and wait until the 30-day period elapses before immediately starting to work with a competitor or doing other activity in violation of its competition agreement. If the employer does not provide a copy of the agreement within the prescribed time frame, the employer has no recourse mechanism at the end of the 30 days. 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. HB 2992 now completes these existing restrictions, namely the requirement to make copies of their competition contracts available to dismissed workers within 30 days of the termination of their competition contracts. This will also be problematic in cases where the sale, merger, reduction of violence, cleaning policy or simply a change of personnel have led to agreements destroyed, misdirected and otherwise difficult to find.