Oregon’s Governor signed Senate Bill 169 into law last month which further revises Oregon’s law governing employment-related non-compete agreements. Beginning January 1, 2022, the bill requires the following:
- The total amount of an employee’s annual gross salary and commissions required to enforce a non-compete agreement must exceed $100,533 annually at the time of the employee’s termination. This amount will be adjusted annually for inflation.
- The terms of the non-compete agreement may not exceed 12 months from the date of the employee’s termination. This time period was previously 18 months from the employee’s termination date.
- Any employee non-compete agreement that does not comply with the requirements of Oregon’s law is void and unenforceable. This change was made to clear up confusion around the law’s previous language which stated that a non-compete agreement would be “voidable” if it did not comply with the law.
These revisions apply only to non-compete agreements entered into on or after January 1, 2022.