Oregon’s
Senate Bill 169, signed May 21, 2021 strengthens Oregon’s existing restrictions on noncompete agreements. Unlike Oregon’s
2019 law which imposed new notice requirements on employers seeking to enter into enforceable noncompetes, Senate Bill 169’s changes are more subtle though just as impactful.
Previously, noncompete agreements which failed to comply with Oregon’s statutory requirements were “voidable.” Senate Bill 169 declares noncompliant noncompetes entered into after January 1, 2022 “void”
ab initio. This seemingly minor change may carry significant legal consequence if it ends up reducing the circumstances in which a former employer can sue for tortious interference.
Other changes in Senate Bill 169 include a reduction in the maximum enforceable length of a noncompete from 18 months to 12 months and a new formula for determining the minimum compensation an employee must be paid to be subject to a noncompete. Previously, Oregon employer