Pursuant to a recently passed Oregon state law (HB 2992), noncompete agreements entered into on or after January 1, 2020 will only be enforceable against Oregon employees if the employer provides the departing employee with a signed copy of the agreement within 30 days after the employee’s date of termination. Though at first blush, this law merely codifies the best practice of reminding departing employees of their continuing obligations to their former employer, it contains a few nuances Oregon employers should keep in mind.
The law requires employers to provide departing employees with a signed copy of their noncompete agreement within 30 days after their termination date. Under a plain text reading of the statute, providing departing employees with a copy of their noncompete agreements on their last day of employment, for example during their exit interview, will not satisfy the statute. Rather, employers should transmit copies of any noncompete agreements to former employees after their employment has terminated.
Although this requirement only applies to noncompete agreements (as opposed to non-solicitation agreements or garden leave clauses), as a best practice, employers should consider reminding departing employees of all their post-employment obligations.
Oregon employers have some lead-time to develop new procedures to accommodate this new requirement. The law applies to noncompete agreements entered into on or after January 1, 2020, so preexisting agreements will continue to be enforceable even if the employer neglects to provide the required notice.