On the spectrum of post-employment restrictions, noncompete
agreements are the most restrictive. On the other end of the
spectrum are nondisclosure agreements, which generally prohibit the
unauthorized use or transfer of the employer's confidential
information. In the middle of the spectrum are nonsolicitation
agreements, which generally prohibit contacting the former
employer's customers in an effort to move their business to the
employee's new place of business. Depending on various factors,
a more restrictive covenant may be needed. This article will
discuss what an employer should consider prior to requiring
noncompete agreements.
What is at stake?
Designed to keep confidential information from walking out the
door and across the street to a competitor via a high-level
employee, noncompete agreements go even further by prohibiting the
employee from working in a similar position for a competitor for a
specific duration. ORS 653.295(7)(d) defines a noncompete
