Noncompetition agreements entered into on or after January 1, 2022, are void and unenforceable unless they adhere to these requirements:
- The noncompetition period can only last up to 12 months after the employee’s termination of employment. (Current law allows the noncompetition period to be up to 18 months after termination.)
- An employee’s annualized gross salary and commissions must be at least $100,533 at the time of their termination. This amount will automatically increase according to inflation each year.
- The employee must be classified under one of the “white collar” exemptions from overtime wages.
- The agreement must be in writing. It cannot be an oral agreement.
- The employer must include in a written employment offer at least two weeks before the first day of employment that a noncompetition agreement is required as a condition of employment, or the noncompetition agreement must be entered into upon a subsequent bona fide advancement.
- Within 30 days after the date of termination, the employer must provide the employee a signed, written copy of the noncompetition agreement.
- at least 50% of the employee’s annualized gross salary and commissions at the time of termination; or
- 50% of the statutory amount ($100,533, adjusted for inflation).
For questions related to noncompetition, nonsolicitation, and nondisclosure agreements, contact Josh Goldberg at 503-228-2107 or firstname.lastname@example.org.
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Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2022 por Barran Liebman LLP.