REMINDER:

New Oregon Noncompete Law Takes Effect January 1, 2008

As we advised several months ago, the rules in Oregon for governing noncompetition agreements are about to undergo significant changes.

Effective January 1, 2008, it will become more difficult for many employers to enter into enforceable agreements with employees designed to restrict post-termination business conduct. The current Oregon statute, which limits such agreements to those entered into at the outset of employment or upon an advancement or promotion, has been radically altered. It will now require that the employee receive at least 2 weeks written notice before entering into any such agreement. Further, as a practical matter such restrictions will apply only to employees who are exempt from overtime and who earn at least $62,000 a year.

There is an exception for agreements that only prohibit a departing employee from soliciting customers. Such a narrower restriction may be a viable option for many employers. It should also be noted that the new law does not apply to confidentiality provisions. More importantly, noncompetition restrictions entered into before the new law takes effect will continue to be enforced under the current standards.

This is a very busy time of the year for businesses. But keep in mind the effective date of this new law, and be sure to work with your employment lawyer before the end of 2007 to ensure compliance with these changing Oregon guidelines.

For more information or assistance with noncompetition agreements, please contact Jack Cooper, a partner in Dunn Carney’s employment law practice group or Randall L. Duncan, Chair of our Closely Held Business Team.

Closely Held
Business Team

The Closely Held Business Team - Dunn Carney is dedicated to assisting business owners in navigating through the opportunities and challenges the law presents to advance each owner’s success in business. They understand the multifaceted issues business owners face each day and the need for responsive and proactive legal counsel.

Team members include:
Randy Duncan, Team leader
Bob Allen
John Barhoum
Merrill Baumann
David Buono
Brian Cable
Jack Cooper
Ken Davis
Tim Hering
Frank Hilton
Elizabeth Howard
Scott Jonsson
Robert Kerr
JoDee Keegan
Kelly Martin
David Rossmiller
Tony Sayess
Kyle Stinchfield
Dan Vidas
Matt Wilmot
Bob Winger
David Zehntbauer