Oregon Employee Agreement with Covenant not to Compete
Description
How to fill out Employee Agreement With Covenant Not To Compete?
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FAQ
California law bars covenants not to compete in nearly all circumstances.
If a non-compete clause does not exceed three months in duration, existing English law limitations on enforceability will still apply; in other words, the non-compete will be unenforceable unless shown to extend no further than is reasonably necessary to protect the employer's legitimate business interests.
The term of a noncompetition agreement may not exceed 12 months from the date of the employee's termination. The remainder of a term of a noncompetition agreement in excess of 12 months is void and may not be enforced by a court of this state.
A restrictive covenant will generally be enforceable between the original contracting parties as a matter of contract. There can be situations where this is not so, for example, where: The covenant is too uncertain or ambiguous to be capable of enforcement.
Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.
A restrictive covenant only designed to restrict competition in itself will not be enforceable. The restriction must also be necessary to protect an employer's confidential information, trade secrets or contacts and to prevent a former employee using these for their own, or a competitor's, unfair advantage against you.
No matter what's in your contract, your old employer can't stop you taking a new job unless it could lose them money. For example if you might: take customers to your new employer when you leave. start a competing business in the same local area.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.