Oregon: Employers Must Remind Employees of Non-Compete Agreements on Exit

APPLIES TO

All Employers with OR Employees

EFFECTIVE

January 1, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

HB 2992 makes noncompete agreements unenforceable unless the employer provides an employee with a signed copy of the agreement within 30 days after the employee’s date of termination. Presumably, “after the date of … termination” does not include the day on which termination takes place. Best practice would be to send a copy of the agreement with proof of receipt to the employee after termination, such as return receipt requested, certified mail, express mail with signature required, etc.

This requirement only applies to noncompete agreements entered into on or after January 1, 2020. Although generally a good practice, the requirement does not apply to noncompete agreements entered into before that time, or to other types of agreements like nonsolicitation agreements or garden leave clauses.

Action Items

  1. Update termination procedures to include sending a copy of executed noncompete agreements to terminated employees within the required timeline.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

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