Are Non-Competes Enforceable in Oregon? Your Rights Explained

In Oregon, a non-compete agreement is void and unenforceable unless it meets every requirement in state statute ORS 653.295 — and even a valid one can last no longer than 12 months after you leave your job. Oregon does not flatly ban non-competes the way California, North Dakota, and Oklahoma do, but it imposes some of the strictest conditions in the country. If your employer skips even one step — such as failing to give you written notice at least two weeks before you start, or asking a worker who earns below the statutory salary threshold to sign — the agreement is simply void, and a court cannot enforce it against you.

Oregon's core rule: ORS 653.295

Oregon treats non-competes with suspicion. Under ORS 653.295, a non-competition agreement is void and unenforceable unless the employer satisfies all of the following conditions. This is the single most important law to understand, because failing any one condition kills the entire agreement.

• Advance written notice. The employer must tell you in a written employment offer that a non-compete is a condition of employment, and you must receive that offer at least two weeks before your first day of work. Alternatively, a non-compete can be entered into later upon a bona fide advancement (a genuine promotion).
• Exempt status. You must be an exempt salaried employee — generally an administrative, executive, or professional employee under ORS 653.020(3). Non-competes cannot be enforced against most hourly and non-exempt workers.
• Salary threshold. Your total annual gross salary and commissions at the time you leave must exceed a statutory dollar figure that is adjusted every year for inflation (it is tied to the median family income for a four-person family published by the U.S. Census Bureau). This is how Oregon protects lower- and middle-income workers from non-competes.
• Protectable interest. The employer must have a legitimate business interest to protect — typically access to trade secrets, confidential business or competitive information, or sensitive customer relationships.
• Post-termination copy. Within 30 days after your employment ends, the employer must give you a signed, written copy of the non-compete terms.

If all of these boxes are checked, the agreement still cannot exceed 12 months from your termination date. Any portion that purports to last longer than 12 months is unenforceable as to the excess time.

What changed recently

Oregon tightened this law through Senate Bill 169, which took effect January 1, 2022. Two changes matter most:

• The maximum enforceable duration was cut from 18 months down to 12 months.
• The consequence of non-compliance was strengthened. Previously a defective non-compete was merely "voidable"; now it is expressly "void and unenforceable" if the requirements are not met. That is a meaningful upgrade in worker protection — a void agreement has no legal force at all.

Because the salary threshold is recalculated annually, the exact dollar figure rises most years. As of 2026 it sits in the low six figures (it has been above roughly $100,000 since the inflation indexing began). Do not rely on a number from an old article — confirm the current threshold with the Oregon Bureau of Labor and Industries (BOLI) before assuming you are or are not covered.

The low-wage and lower-salary protections

Oregon's structure functions as a built-in ban for low-wage and many mid-wage workers. Because a non-compete cannot be enforced against a non-exempt employee, and cannot be enforced against an exempt employee whose pay falls below the annual threshold, most hourly workers, retail and service staff, and lower-paid salaried employees are effectively shielded. An employer can ask such a worker to sign a non-compete, but it will be void and cannot be used to block them from taking another job.

There is one workaround the statute allows. Even if your salary is below the threshold, an employer can still enforce a non-compete if it agrees to pay you during the restricted period — specifically, the greater of 50% of your annual gross base salary and commissions at termination, or 50% of the statutory threshold amount. This is often called "garden leave." If your employer is not paying you during the restriction and you earn below the threshold, the non-compete generally cannot be enforced.

What Oregon's law does NOT cover

The 12-month cap and the ORS 653.295 conditions apply to true non-competition agreements — promises not to work for a competitor or start a competing business. Several related restrictions are treated differently and are not governed by this statute:

• Non-solicitation agreements — promises not to solicit the employer's customers or employees — are excluded from ORS 653.295 and are judged under ordinary reasonableness standards.
• Confidentiality and trade-secret agreements protecting genuinely confidential information.
• Bonus restriction agreements, which condition a bonus on not competing rather than forbidding competition outright.

Employers sometimes relabel a non-compete as a "non-solicitation" agreement to dodge the statute. Whether a restriction is really a non-compete depends on its actual effect, not its title, so read the substance carefully.

The federal backdrop

There is currently no nationwide federal ban on non-compete agreements. The Federal Trade Commission issued a rule in 2024 that would have banned most non-competes nationally, but a federal court blocked it before it took effect, and it is not in force. That means your protection comes almost entirely from Oregon state law, not federal law — which is exactly why the state-specific rules above are what matter. Oregon is far more protective than the federal baseline, where non-competes generally remain a matter of state law and many states still enforce them broadly.

What to do if you are asked to sign — or threatened

Whether you are facing a new agreement or an old one your employer is trying to enforce, take these steps:

• Check the timing. Did you receive the written offer at least two weeks before your start date, or did you sign in exchange for a real promotion? If neither, the non-compete is likely void.
• Check your pay and status. Are you a non-exempt (hourly) worker, or does your annual salary and commissions fall below the current statutory threshold? If so, the agreement generally cannot be enforced unless the employer pays you during the restriction.
• Check the duration. Anything beyond 12 months after your last day is unenforceable.
• Demand the post-termination copy. If you have left, confirm the employer gave you a signed copy within 30 days.
• Get it in writing and keep records. Save your offer letter, the signed agreement, pay records, and any threatening communications.
• Do not quietly comply with an unenforceable threat. Employers sometimes send cease-and-desist letters on void agreements hoping you will back down.

Before signing anything or turning down a job offer over a non-compete, consult an Oregon employment attorney — many offer free initial consultations, and the analysis is fact-specific. For official information on Oregon wage and employment rights, contact the Oregon Bureau of Labor and Industries (BOLI), the state agency that administers Oregon's labor laws, and review ORS 653.295 directly through the Oregon Legislature's website. Because the salary threshold and case law evolve, always verify the current figures with BOLI before acting.

This article is general information, not legal advice. For advice about your specific situation, speak with a licensed Oregon employment attorney.

Official Oregon Sources

This page is based on Oregon employment law. Rules and figures change — verify the current details directly with the official Oregon sources below. This is general legal information, not legal advice.

• Oregon Bureau of Labor and Industries (BOLI) — official Oregon agency.
• BOLI: Wage and Hour Complaint (For Workers)
• Oregon Revised Statutes Chapter 652 — Hours; Wages; Wage Claims; Records

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Oregon state law.