Non-Competition Amendment Signed into Law

May 13, 2019


By Caitlin Egeck, JD, HR and Compliance Consultant
Cascade Employers Association
[email protected]

On May 13, 2019, HB 2992, a bill relating to non-competition agreements, was signed into law. This law adds new provisions and amends ORS 653.295.

Non-competition agreements in the employment realm are documents where employees agree not to perform work that is in direct competition against the employer. Non-competition agreements in Oregon are subject to statutory restrictions, where noncompliance makes the agreement voidable.

Under HB 2992, employers now have to provide a signed, written copy of the terms of the non-competition agreement to the employee within 30 days of the employee’s termination from the employer in order for the agreement to be enforceable. This amendment only applies to non-competition agreements entered into on or after the effective date of the act.

Additionally, while there are more in-depth details and exceptions, ORS 653.295 also states that:

  • Employers must inform new employees in writing at least two weeks before their first day of work that the non-compete is a requirement of employment or with existing employees, the non-competition agreement must be a condition of bona fide advancement.
  • Only certain classes of employees are eligible for non-competition agreements - salaried employees who engage in administrative, executive, or professional work and who perform predominantly intellectual, managerial or creative tasks where they exercise discretion and independent judgment.
  • The employer must have a “protectable interest” meaning that the employee has access to trade secrets and/or sensitive and confidential information.

If you have any questions, please let us know!

 

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