Are Non Compete Agreements Enforceable in Oregon

Non-compete agreements have become increasingly common in employment contracts across the country, including Oregon. However, the enforceability of these agreements can vary from state to state. In Oregon, non-compete agreements are generally enforceable, but they must adhere to certain guidelines.

Under Oregon law, non-compete agreements must be reasonable in scope and duration. This means that the agreement cannot be so broad that it prevents the employee from working in the same industry or profession for an unreasonable amount of time. Additionally, the agreement must serve a legitimate business interest of the employer.

Oregon courts have held that a non-compete agreement can be enforceable if it is designed to protect trade secrets, confidential information, or customer relationships. In these cases, the agreement must be narrowly tailored to protect only the employer`s legitimate interests.

On the other hand, non-compete agreements that are overly broad or not necessary to protect the employer`s interests may not be enforceable. For example, an agreement that prevents an employee from working in the same industry for several years may be seen as too restrictive and therefore unenforceable.

It`s also important to note that certain professions are exempt from non-compete agreements in Oregon. For example, healthcare providers and broadcasters are generally not subject to non-compete agreements.

If an employer wishes to enforce a non-compete agreement, they must take legal action to seek an injunction. This means that the employer would need to go to court and demonstrate that the agreement is reasonable and necessary to protect their legitimate business interests.

Overall, non-compete agreements in Oregon can be enforceable if they meet certain requirements. Employers should work with legal counsel to ensure that their agreements are reasonable and necessary, while employees should carefully review any non-compete agreement before signing on the dotted line.