Non-competition agreements, also known as covenants not to compete or restrictive covenants, are employment contracts used by employers to limit the ability of an employee to compete with the employer by stealing customers or trade secrets. Enforceable agreements must strike a balance between protecting the employer's legitimate business interests from an unfair competitive advantage with the employee's right to work in a field for which he or she is trained.  In general, courts decide what is considered reasonable or not reasonable by examining the type and size of the business, how long and over what geographic area the restrictions apply and whether adequate consideration, or benefit, was given the employee at the time the agreement was signed.

The Law In Oregon Prior to 2007 Changes to the Statute

Oregon law, for non-competition agreements entered into prior to January 1, 2008, permitted non-competition agreements between employers and employees if they were entered into upon initial employment or upon a "bona fide advancement" of the employee.  Such agreements can protect certain business interests of the employer such as trade secrets, confidential information and customer relationships  Factors considered when determining reasonableness include the hardship an agreement puts on the former employee, its effect on the general public and the restrictions placed on time, territory and activity of the former employee.