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On May 21, 2021, Oregon Governor Kate Brown signed
Senate Bill (SB) 169, making substantial changes to the statute
that limits noncompetition agreements with Oregon employees, Oregon
Revised Statutes (ORS) 653.295. The changes apply to any employee
noncompetition agreement entered into on or after the effective
date of the act.
SB 169 makes four major changes to the existing law:
1. Noncompliant Covenants Not to Compete Are Void Instead of
Voidable
Under the former version of ORS 653.295, a noncompetition
agreement with an Oregon employee that did not satisfy the
requirements of the statute was “voidable,” rather than