Stoel Rives Offers Seminar on Oregon's New Noncompete Law
Legislation that significantly altered an employer’s ability to utilize noncompete agreements in the state of Oregon took effect on January 1, 2008. How has the new law impacted corporate policies around restrictive covenants? What are the new best practices you need to implement to stay in compliance?
For answers to these questions and more, join Stoel Rives for a breakfast seminar on September 25 titled "Noncompetes, Nonsolicitation and Confidentiality: Lessons Learned After a Year Under Oregon's New Noncompete Law," presented by Amy Joseph Pedersen, Ed Reeves and Carolyn Walker of the firm's Labor and Employment Group.
California Supreme Court Confirms Noncompetes Are Invalid
In a 7-0 decision yesterday, the California Supreme Court held that a noncompetition agreement signed by a former Arthur Andersen CPA was invalid under California law. In Edwards v. Arthur Andersen LLP, the court reminded us that noncompetition agreements are invalid under California's Business and Professions Code section 16600, even if they are written narrowly enough not to deprive persons of their right to pursue their profession. The court specifically rejected the "narrow restraint" exception to section 16600 that had previously been adopted by the Ninth Circuit, under which employers could enforce noncompetes that did not "entirely preclude" an employee from practicing his or her trade. New Idaho Statute Expands Noncompetition Agreements
A new Idaho statute (Idaho Code 44-2701 et seq.) set to go into effect July 1, 2008 defines presumptively reasonable limitations applicable to covenants against competition and solicitation by employees and independent contractors.
Under the statute, a noncompetition period of up to 18 months are presumptively reasonable, as is a geographic scope that includes anywhere the employee provided services or "had a significant presence or influence." The law also encourages courts that find such provisions unreasonable to determine the intent of the parties and modify the covenant to make it enforceable.
This should be good news for Idaho employers, who have historically received with a chilly reception in Idaho courts when trying to enforce noncompetition agreements.
Under the statute, a noncompetition period of up to 18 months are presumptively reasonable, as is a geographic scope that includes anywhere the employee provided services or "had a significant presence or influence." The law also encourages courts that find such provisions unreasonable to determine the intent of the parties and modify the covenant to make it enforceable.
This should be good news for Idaho employers, who have historically received with a chilly reception in Idaho courts when trying to enforce noncompetition agreements.
