The 2021 Oregon legislative session imposed further limitations on noncompetition agreements. Before the law becomes effective on January 1, 2022, you should review your agreements to ensure they provide the best possible protection.
New Limits on Noncompetes
Senate Bill (SB) 169, which passed during the 2021 Oregon legislative session, further limits employers’ ability to use noncompete agreements. Effective January 1, the following limits will be in force:
- The agreement can be in effect no longer than 12 months (instead of the current 18);
- Employees can be subject to a noncompete only if they earn at least $100,533 at the time of termination (the number will be adjusted annually for inflation); and
- The agreement must be in writing.
