Competition rules are also limited to 18 months, unless an employer can demonstrate, through clear and convincing evidence, that a longer period of time is necessary to protect the interests or gooditi of the party. The Act also provides for an additional provision that non-competitive agreements are not enforceable when a worker`s position ceases as a result of dismissal, unless the employer awards compensation corresponding to the worker`s base salary at the time of dismissal, for the duration of the non-performance clause, less compensation that the worker earned through another subsequent job. (1) A non-competitive agreement between the employer and the worker is null and private and can only be applied by a court in that state if HB 2992 is added to these existing restrictions, the condition being that dismissed workers be subject to copies of their competition contracts within 30 days of the end of the competition contract. 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. 3. Subsections 1 and 2 of this section apply only to non-competitive agreements made in the context of an employment relationship or contract, and not for other purposes. 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. Talk to an employment lawyer in Portland for all your legal needs related to non-compete bans. This new post-termination requirement is followed by several existing restrictions on non-competitive agreements with Oregon employees in ORS 653.295. These restrictions include the need to inform the worker, as part of a written offer of employment that the worker receives at least two weeks before the first working day, that a competition incapacity agreement is required as a condition of employment. In other words, from 2020, employers will have to worry about compliance with the obligation to notice and dismiss after employment, to ensure that competition contracts are not cancelled.