Legal Question in Employment Law in Oregon

Re: Non Compete

Non-competition agreements are valid in the state of Oregon where the employer has shown a legitimate interest, such as a trade secret, that requires protection. The agreement must be limited in time and space, it must be on some good consideration, and the protection can only be so large as is reasonably necessary to protect the interest of the employer. For instance, if you are the regional manager for the western states, your employer's non-competition clause could not legally prevent you from working for a competitor in the entire U.S. for a period of 10 years. A 2 to 3 year time limitation is generally held to be valid, and the geographical limitation must be reasonable. In addition, Oregon law requires that non-competition agreements are only valid when signed at the commencement of employment or subsequent to a bona fide advancement by the employee. Feel free to call if you would like to discuss this matter further.