In Oregon, a covenant not to compete typically 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 know 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 Keizer.

The agreements must also deal only with those competitors whose line of employment is reasonably related to the previous employer's. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.

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

A Keizer, Oregon lawyer can help you review the covenant before you sign any agreements that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. 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.