Oregon non compete law restricts non competes by statute: oregon voids a non compete unless the worker is a salaried exempt employee above an inflation-adjusted pay threshold, got two weeks’ written notice before starting, and the term is 12 months or less.
This guide gives the exact Oregon non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one.
Rules verified against Oregon Bureau of Labor and Industries (BOLI) on 2026-10-08; confirm the current rule with Oregon Bureau of Labor and Industries (BOLI) or an attorney before you rely on it.
Oregon Non Compete Law at a Glance
| Status | Restricted by statute |
| Income threshold | Annual gross salary plus commissions at termination must exceed a BOLI-adjusted figure ($100,533 in the statute, adjusted each year for inflation; about $119,541 for 2026 per the BOLI table) — or the employer pays at least 50% of salary during the restriction |
| Statute | Or. Rev. Stat. 653.295 |
| Notice / consideration | Written notice at least 2 weeks before the first day, or at a bona fide advancement; a signed copy within 30 days after termination |
| Carve-outs | Non exempt (hourly) workers; anyone below the salary threshold unless paid 50% garden leave; terms over 12 months (the excess is void); on-air broadcast talent… |
| Overbroad terms | void unless every statutory condition is met |
| In effect since | January 1, 2022 (SB 169: void rather than voidable, 12-month cap, dollar threshold) |
In This Oregon Non Compete Law Guide:
Is a Non Compete Enforceable Under Oregon Non Compete Law?
Oregon voids a non compete unless the worker is a salaried exempt employee above an inflation-adjusted pay threshold, got two weeks’ written notice before starting, and the term is 12 months or less. The statute is Or. Rev. Stat. 653.295.
The carve-outs matter: non exempt (hourly) workers; anyone below the salary threshold unless paid 50% garden leave; terms over 12 months (the excess is void); on-air broadcast talent has its own rule; customer non solicits are treated as non competes under Oregon case law.
Oregon Non Compete Law at a Glance
Rules verified against Oregon Bureau of Labor and Industries (BOLI) on 2026-10-08; confirm the current rule with Oregon Bureau of Labor and Industries (BOLI) or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Restricted by statute |
| What the rule says | Oregon voids a non compete unless the worker is a salaried exempt employee above an inflation-adjusted pay threshold, got two weeks’ written notice before starting, and the term is 12 months or less. |
| Income threshold | Annual gross salary plus commissions at termination must exceed a BOLI-adjusted figure ($100,533 in the statute, adjusted each year for inflation; about $119,541 for 2026 per the BOLI table) — or the employer pays at least 50% of salary during the restriction |
| Statute | Or. Rev. Stat. 653.295 |
| Notice or consideration rule | Written notice at least 2 weeks before the first day, or at a bona fide advancement; a signed copy within 30 days after termination |
| Carve-outs | Non exempt (hourly) workers; anyone below the salary threshold unless paid 50% garden leave; terms over 12 months (the excess is void); on-air broadcast talent has its own rule; customer non solicits are treated as non competes under Oregon case law |
| What a court does with an overbroad term | void unless every statutory condition is met |
| In effect since | January 1, 2022 (SB 169: void rather than voidable, 12-month cap, dollar threshold) |
The Reasonableness Test Under Oregon Non Compete Law
Oregon courts first check whether the agreement meets the conditions in the state’s noncompete statute, and then whether it is reasonable. The employer must have a legitimate interest to protect, such as trade secrets or competitively sensitive confidential business information. The worker must have done administrative, executive or professional work that was mainly intellectual, managerial or creative.
A court also asks whether the time limit, the area and the kinds of work restricted go further than needed to protect that interest, and how hard the restriction is on the worker.
For agreements signed on or after January 1, 2022, Oregon law limits a noncompete to 12 months after the job ends, and any longer term is unenforceable. Courts have generally upheld restrictions tied to the employer’s actual customers, territory and line of business, and have refused to enforce broad restrictions that bar a worker from an entire industry or a very large area.
With an overbroad term the court will void unless every statutory condition is met.
Oregon Non Compete Law If You Were Fired or Laid Off
The Oregon statute does not create a separate rule based on whether the worker was fired, laid off or quit, so the same legal requirements apply either way. Being let go can still matter, because the employer must have met every statutory condition and a court may weigh hardship to the worker. Confirm how this applies to your situation with an Oregon employment attorney.
What the Employer Must Give Under Oregon Non Compete Law
Written notice at least 2 weeks before the first day, or at a bona fide advancement; a signed copy within 30 days after termination In Oregon, continued employment alone is not enough for a current employee. The noncompete must be entered into either when the worker is first hired or when the worker receives a bona fide advancement, such as a real promotion.
A noncompete given to a current employee without a bona fide advancement does not meet the statute.
Non Solicit and Non Disclosure Agreements Under Oregon Non Compete Law
Oregon’s statutory noncompete limits do not cover agreements not to solicit or do business with the employer’s customers, agreements not to recruit co-workers, or confidentiality and nondisclosure agreements. Those agreements are generally easier to enforce, but courts still expect them to be reasonable and to protect a real business interest.
If You Already Signed One: Oregon Non Compete Law in Practice
Find your signed copy, read exactly what it restricts, and note how long it lasts, what area it covers and whether it applies however the job ended. Check whether it was signed when you were hired or at a real promotion and whether it lasts 12 months or less.
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You can ask your former employer for a written release, and you can have the agreement reviewed by an Oregon employment attorney before you accept a new offer.
If an Oregon noncompete is valid, the employer may ask a court for an injunction that stops the worker from doing the competing work, and may also seek money damages for losses it can prove. Attorney fees are available only if the contract or a statute allows them.
Under Oregon’s fee-reciprocity law, a contract fee clause generally lets the winning side recover fees, so a worker who wins may also recover fees.
The Federal Rule and Oregon Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Oregon non compete law controls.
In June 2025, Oregon enacted SB 951, which makes most noncompete agreements with physicians, naturopathic physicians, nurse practitioners and physician associates void, with narrow exceptions. Later 2025 legislation, HB 3410, applied those limits to agreements signed before, on or after the law passed and delayed some effective dates for existing management companies to January 1, 2029.
Other Oregon Non Compete Law Rules to Know
Since January 1, 2022, a noncompete that does not meet Oregon’s statutory conditions is void, so it cannot be enforced at all. Within 30 days after the job ends, the employer must give the worker a signed written copy of the agreement. An employer can still enforce an otherwise noncompliant agreement if it chooses to pay the worker during the restricted period, generally at least half of the worker’s pay.
Separate limits apply to medical licensees under SB 951 (2025).
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Oregon — the bottom line
- Oregon non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
- Under Oregon non compete law, an overbroad term is void unless every statutory condition is met — the words of your own agreement decide more than the headline rule.
- Oregon non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Oregon?
Sometimes. Oregon voids a non compete unless the worker is a salaried exempt employee above an inflation-adjusted pay threshold, got two weeks’ written notice before starting, and the term is 12 months or less.
Is there an income threshold under Oregon non compete law?
Annual gross salary plus commissions at termination must exceed a BOLI-adjusted figure ($100,533 in the statute, adjusted each year for inflation; about $119,541 for 2026 per the BOLI table) — or the employer pays at least 50% of salary during the restriction
What does an Oregon court do with an overbroad non compete?
Void unless every statutory condition is met.
Can my employer enforce a non compete in Oregon after firing me?
The Oregon statute does not create a separate rule based on whether the worker was fired, laid off or quit, so the same legal requirements apply either way. Being let go can still matter, because the employer must have met every statutory condition and a court may weigh hardship to the worker.
I signed a non compete in Oregon and have a new offer — what should I do?
Find your signed copy, read exactly what it restricts, and note how long it lasts, what area it covers and whether it applies however the job ended. Check whether it was signed when you were hired or at a real promotion and whether it lasts 12 months or less.
Official Oregon Sources & Resources
- Oregon Bureau of Labor and Industries (BOLI): https://www.oregon.gov/boli/workers/pages/paychecks.aspx
- Oregon non compete statute (Or. Rev. Stat. 653.295): https://www.oregonlegislature.gov/bills_laws/ors/ors653.html
- Verified source: https://www.oregon.gov/boli/employers/pages/noncompetition-agreements.aspx
- Verified source: https://oregon.public.law/statutes/ors_653.295
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Oregon bar lawyer referral: https://www.osbar.org/public/ris/
This Oregon non compete law guide was last verified against official Oregon sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Oregon Workplace Rights Guides
- Oregon Final Paycheck Law: Deadlines and Penalties
- Oregon Wrongful Termination Laws: When a Firing Is Illegal
- Oregon At Will Employment Law: The Exceptions
- Oregon Labor Laws: Every Rule in One Place
- Unemployment and Workplace Rights Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.