Updated October 16, 2023
An Oregon non-solicitation agreement is a contract between an employer and an employee that restricts the employee from soliciting the employer’s customers and personnel after ceasing to work for the company. The agreement is intended to protect the employer’s business interests and prevent competitors from unfairly gaining an advantage.
Is It Legally Enforceable in Oregon?
Yes. Non-solicitation agreements are legally binding in Oregon. While non-compete agreements may not exceed 18 months and are limited to a geographic area and specified activities, non-solicitation agreements are exempt from these restrictions.
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What Types of Solicitation Can Be Prohibited?
A non-solicitation agreement can restrict a former employee from engaging in the employer’s:
- Former or current clients/customers
- Former or current employees
- Independent contractors
- Suppliers, business associates, etc.
What Should Be Included in the Agreement?
While Oregon statutes do not govern non-solicitation covenants with strict standards as they do with non-competes, it is generally considered best practice to include parameters on the following:
1. Duration
The duration dictates the time period that the restrictions will be enforced. It typically begins when the employee’s job with the employer is terminated and can last from a few months to several years depending on the context.
2. Geographical Area
The agreement should also specify the geographical area where the individual is bound to the terms. Typically, the limitation is set to the city, county, or region where the employer is based.
3. Prohibited Activities
Because the terms of a non-solicitation agreement is highly customizable in Oregon, the agreement should define in detail what “soliciting” entails, and whom the individual is prohibited from soliciting.
Related Forms
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Oregon Non-Disclosure Agreement
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