The legislatures of Oregon, Nevada and Illinois recently placed additional limitations on restrictive covenants, particularly non-competition covenants.
Changes to Oregon Restrictive Covenants
Effective as to agreements entered into on or after May 21, 2021, Oregon has further restricted non-compete agreements. Oregon previously limited non-compete agreements to a maximum of 18 months from the date of separation and to only those employees who do the following:
- Engage in administrative, executive or professional work.
- Perform predominately intellectual, managerial or creative tasks.
- Exercise discretion and independent judgment.
- Are paid a salary (or combination of salary and commissions) that exceeds the median income for a four-person family.