A non-solicitation agreement, or a non-compete clause, is a legal document that prohibits an employee from soliciting the clients or customers of their former employer after they leave. In Oregon, these agreements are enforceable but are subject to certain restrictions and limitations.
Under Oregon law, non-solicitation agreements must be reasonable in scope and duration. A non-solicitation agreement cannot be so broad that it prevents an employee from working in their chosen profession or industry, or from earning a living. Furthermore, a non-solicitation agreement cannot last longer than two years, unless the employer can demonstrate a specific business need for a longer duration.
Non-solicitation agreements must be supported by valid consideration, such as a signing bonus, stock options, or additional compensation. If an employee is required to sign a non-solicitation agreement after they have already been hired, the agreement must be supported by additional consideration, such as a promotion or salary increase.
If a non-solicitation agreement is found to be overly broad or unreasonable, it may be deemed unenforceable by a court of law. Furthermore, if an employer attempts to enforce an unenforceable agreement, they may be subject to legal repercussions, such as the payment of damages or attorney fees.
Overall, non-solicitation agreements are a common tool used by employers to protect their customer base and confidential information. However, these agreements must be carefully drafted and executed to ensure that they are enforceable and not unduly restrictive on an employee`s ability to work and earn a living.
Consulting with a qualified employment attorney is highly recommended when drafting, negotiating, or enforcing a non-solicitation agreement in Oregon.