Page 12 - TPM Newsletter JAN 2020

12 January 2020
Colt Catlin
COUNSEL’S CORNER ccatlin@tpmrs.com
TPM Attorney

Noncompe on Agreements

Please note that the following is a general outline and not intended to provide specifi c recommenda on for implementa on of policy. Addi onally, the law in each
state may diff er. Please call TPM’s In-House Counsel to discuss how the law is specifi ed in your state.

Overview
V Washington — Eff ec ve January 1, 2020,
employers generally can’t restrict, restrain, or
prohibit employees earning less than twice the
applicable Washington minimum hourly wage
from having an addi onal job, supplemen ng
their income by working for another employer,
working as an independent contractor, or being
self-employed. Noncompe on covenants
are enforceable against employees and
independent contractors if certain condi ons
are met. They are unenforceable if their
dura on exceeds 18 months a er termina on
of employment, unless that dura on is
necessary to protect employers’ business or
goodwill.
V Idaho — Employers can enter into
noncompe on agreements or covenants with
key employees or independent contractors
under certain condi ons.

V Oregon — Employers can enforce
noncompe on agreements for a term of up to 18
months if certain condi ons are met. V Oregon — Employers and employees are covered by
the noncompe on agreements law if they meet the
V Montana — Montana law allows companies defi ni on of “employer” and “employee” under Or.
to agree to restric ve covenants, also known Rev. Stat. § 652.310.
as noncompe on agreements, under certain
circumstances. This summary is restricted to private employers,
excluding industry/occupa on-specifi c requirements.
Coverage Or. Rev. Stat. § 653.295.
V Washington — Eff ec ve January 1, 2020, employers
and employees are covered by the noncompe on V Montana — Montana’s law on noncompe on
agreements law if they meet the defi ni on of agreements applies to workplaces in the private
“employer” or “employee” in Wash. Rev. Code § sector.
49.17.020. This summary covers requirements for Prohibited Ac ons
private-sector employment, excluding industry/ V Washington — Eff ec ve January 1, 2020, an
occupa on-specifi c requirements. Wash. Rev. Code employer can’t restrict, restrain, or prohibit
§ 49.NEW.NEW (2019 Wash. Sess. Laws 299 (H.B. employees earning less than twice the applicable
1450), § 2).
Washington minimum hourly wage from having
V Idaho — Public and private employers are covered an addi onal job, supplemen ng their income
by the noncompe on agreement provisions. This by working for another employer, working as an
summary is restricted to private employers, excluding independent contractor, or being self-employed.
industry/occupa on-specifi c requirements such This prohibi on doesn’t apply to such addi onal
as those that apply to physicians (Idaho Code § work that would raise safety issues for them, their
39-6109).
Con nued on Next Page
Timber Products Manufacturers Associa on