Source: http://www.oregonlaws.org/ors/653.295
Timestamp: 2014-10-31 20:47:02
Document Index: 91045688

Matched Legal Cases: ['§ 653', '§2', '§1', '§85', '§459', '§2']

ORS 653.295 - Noncompetition agreements - 2013 Oregon Revised Statutes
2013 ORS § 653.295¹
• bonus restriction agreements
• applicability of restrictions
(1) A noncompetition agreement entered into between an employer and employee is voidable and may not be enforced by a court of this state unless:
(b) The employee is a person described in ORS 653.020 (Excluded employees) (3);
(A) Has access to trade secrets, as that term is defined in ORS 646.461 (Definitions for ORS 646.461 to 646.475);
(i) In the year preceding the termination of the employees employment, expended resources equal to or exceeding 10 percent of the employees annual salary to develop, improve, train or publicly promote the employee, provided that the resources expended by the employer were expended on media that the employer does not own or control; and
(ii) Provides the employee, for the time the employee is restricted from working, the greater of compensation equal to at least 50 percent of the employees annual gross base salary and commissions at the time of the employees termination or 50 percent of the median family income for a four-person family, as determined by the United States Census Bureau for the most recent year available at the time of the employees termination; and
(d) The total amount of the employees annual gross salary and commissions, calculated on an annual basis, at the time of the employees termination exceeds the median family income for a four-person family, as determined by the United States Census Bureau for the most recent year available at the time of the employees termination. This paragraph does not apply to an employee described in paragraph (c)(C) of this subsection.
(2) The term of a noncompetition agreement may not exceed two years from the date of the employees termination. The remainder of a term of a noncompetition agreement in excess of two years is voidable and may not be enforced by a court of this state.
(a) Compensation equal to at least 50 percent of the employees annual gross base salary and commissions at the time of the employees termination; or
(b) Fifty percent of the median family income for a four-person family, as determined by the United States Census Bureau for the most recent year available at the time of the employees termination.
(a) Bonus restriction agreement means an agreement, written or oral, express or implied, between an employer and employee under which:
(B) The services performed by the employee pursuant to the agreement include substantial involvement in management of the employers business, personal contact with customers, knowledge of customer requirements related to the employers business or knowledge of trade secrets or other proprietary information of the employer; and
(b) Broadcasting means the activity of transmitting of any one-way electronic signal by radio waves, microwaves, wires, coaxial cables, wave guides or other conduits of communications.
(c) Employee and employer have the meanings given those terms in ORS 652.310 (Definitions of employer and employee).
(d) Noncompetition agreement means an agreement, written or oral, express or implied, between an employer and employee under which the employee agrees that the employee, either alone or as an employee of another person, will not compete with the employer in providing products, processes or services that are similar to the employers products, processes or services for a period of time or within a specified geographic area after termination of employment. [1977 c.646 §2; 1983 c.828 §1; 1985 c.565 §85; 2005 c.22 §459; 2007 c.902 §2]
Initial employ­ment, for purposes of this sec­tion, means when the employe starts work. Olsten Corp. v. Sommers, 534 F Supp 395 (1982)
In ac­tion to enforce noncompeti­tion covenant, where evidence showed defendants spent part of their time contacting existing customers of plaintiff and as result of these contacts customers were more likely to come to defendants initially and that when defendants formed their own business 14 of their 27 customers were former clients of plaintiff, defendants customer contracts gave plaintiff legitimate interest entitled to protec­tion by noncompeti­tion agree­ment. Olsten Corp. v. Sommers, 534 F Supp 395 (1982)
This sec­tion precluded en­force­­ment of noncompeti­tion agree­ment not entered into at time of employes initial employ­ment. Pacific Veterinary Hospital v. White, 72 Or App 533, 696 P2d 570 (1985)
Agree­ment prohibiting employee from soliciting businesses targeted for marketing by employer is noncompeti­tion agree­ment. Dymock v. Norwest Safety Protective Equip­ment for Oregon Industry, Inc., 334 Or 55, 45 P3d 114 (2002)
Employee refusing to sign unenforceable noncompeti­tion agree­ment is not pursuing employ­ment-related right. Dymock v. Norwest Safety Protective Equip­ment for Oregon Industry, Inc., 334 Or 55, 45 P3d 114 (2002)
Bona fide advance­ment means job content and responsibilities of employee ma­te­ri­ally increase and status of employee within company improves. Nike, Inc. v. McCarthy, 379 F3d 576 (9th Cir. 2004)
Where employee contracts to work for same employer for period sub­se­quent to scheduled termina­tion of employ­ment, whether contract period is new initial employ­ment depends on whether employ­ment capacity during contract period substantially differs in nature from employ­ment capacity prior to termina­tion. McGee v. Coe Manufacturing Co., 203 Or App 10, 125 P3d 26 (2005)
58 OLR 336 (1979); 88 OLR 515 (2009)