In Oregon, a covenant not to compete generally requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". Employees who sign them can either receive compensation or simply be required to agree as a condition for their employment.

When are Covenants not to Compete Unenforceable?

It is difficult to foresee whether a judge will enforce a given non-compete agreement. While employer's interest are important, the courts of Oregon also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an unusually long period of time or if they cover an unreasonably large geographic area around Hood River.

Covenants not to compete are also required to deal only with competitors who are reasonably related to the employer's line of industry. Finally, there must be a valid business interest which motivates the employer's mandating a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Since covenants could restrict your rights, you may wish to hire a Hood River, Oregon lawyer to review any documents. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. A lawyer can also render useful advice for employers who are contemplating suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.