Oregon non-compete law

Pay figure in the law

$119,541 a year

Separate rules for professions

health care workers

Statutes and official texts quoted

ORS 653.295(1); ORS 653.295(1)(a); ORS 653.295(1)(d); ORS 653.295(1)(b); ORS 653.295(1)(e); Oregon BOLI, Noncompetition Agreements page (ORS 653.295); ORS 653.295(2); ORS 653.295(3); ORS 653.295(7); ORS 653.295(5); ORS 653.297(2)(a); Oregon BOLI, Noncompetition Agreements page

Is a non-compete allowed?

Oregon allows employee noncompetition agreements only when listed conditions are all met; an agreement that does not meet them is void and unenforceable.

“A noncompetition agreement entered into between an employer and employee is void and unenforceable unless:”
ORS 653.295(1)

Pay thresholds

The employee's annual gross salary and commissions at termination must exceed $100,533 (the 2022 base figure), adjusted annually for inflation using the CPI-U West Region.

“The total amount of the employee’s annual gross salary and commissions, calculated on an annual basis, at the time of the employee’s termination exceeds $100,533, adjusted annually for inflation pursuant to the Consumer Price Index for All Urban Consumers, West Region (All Items)”
ORS 653.295(1)(e)

Oregon's labor bureau publishes the inflation-adjusted minimum: $116,427 for 2025 and $119,541 for 2026 (salary and commissions must exceed this amount).

“2025 $116,427 2.7% 2026 $119,541”
Oregon BOLI, Noncompetition Agreements page (ORS 653.295)

Notice and signing

The employer must tell the employee in a written job offer received at least two weeks before the first day of work that a noncompetition agreement is required, or the agreement must be entered into upon a later bona fide advancement.

“The employer informs the employee in a written employment offer received by the employee at least two weeks before the first day of the employee’s employment that a noncompetition agreement is required as a condition of employment; or”
ORS 653.295(1)(a)

Within 30 days after employment ends, the employer must give the employee a signed, written copy of the noncompetition agreement's terms.

“Within 30 days after the date of the termination of the employee’s employment, the employer provides a signed, written copy of the terms of the noncompetition agreement to the employee; and”
ORS 653.295(1)(d)

Health care and other professions

A noncompetition agreement restricting the practice of medicine or nursing is void and unenforceable between a medical licensee and the listed entities (including management services organizations and hospitals), subject to listed exceptions such as certain ownership interests.

“a noncompetition agreement that restricts the practice of medicine or the practice of nursing is void and unenforceable between a medical licensee and:”
ORS 653.297(2)(a)

Oregon's labor bureau states that Senate Bill 951 (2025) added limits on healthcare practitioner restrictive covenants, and that HB 3410 applies the noncompetition provisions to medical licensee agreements entered into before, on, or after SB 951's effective date.

“Senate Bill 951 (2025) imposed significant new limitations on restrictive covenants with healthcare practitioners relating to noncompetition, nondisparagement, and nondisclosure.”
Oregon BOLI, Noncompetition Agreements page

Who is covered

The employee must be a person described in ORS 653.020(3).

“The employee is a person described in ORS 653.020 (3);”
ORS 653.295(1)(b)

What the employer must protect

The employer must have a protectable interest, such as the employee's access to trade secrets or competitively sensitive confidential business information, or the employee being on-air broadcast talent under listed conditions.

“Has access to competitively sensitive confidential business or professional information that otherwise would not qualify as a trade secret, including product development plans, product launch plans, marketing strategy or sales plans; or”
ORS 653.295(2)

Exceptions

The conditions and 12-month limit do not apply to bonus restriction agreements or to covenants not to solicit employees or customers.

“Subsections (1) and (3) of this section do not apply to: (a) Bonus restriction agreements, which are lawful agreements that may be enforced by the courts in this state; or (b) A covenant not to solicit employees of the employer or solicit or transact business with customers of the employer.”
ORS 653.295(5)

Limits on length and area

A noncompetition agreement may not last more than 12 months after termination; any longer remainder is void.

“The term of a noncompetition agreement may not exceed 12 months from the date of the employee’s termination. The remainder of a term of a noncompetition agreement in excess of 12 months is void and may not be enforced by a court of this state.”
ORS 653.295(3)

Even if the employee is not exempt or is below the earnings threshold, an agreement can be enforced for up to 12 months if the employer agrees in writing to pay, during the restricted period, the greater of 50% of the employee's annual gross base salary and commissions or 50% of the adjusted threshold amount.

“a noncompetition agreement is enforceable for the full term of the agreement, for up to 12 months, if the employer agrees in writing to provide the employee, for the time the employee is restricted from working, the greater of:”
ORS 653.295(7)

When the rules took effect

Oregon's labor bureau states that under SB 169 (2021), agreements entered into on or after January 1, 2022 that do not meet the revised criteria are void.

“the Legislature narrowed the application of noncompetition agreements and clarified that agreements entered into on or after January 1, 2022 which did not meet revised criteria are simply void.”
Oregon BOLI, Noncompetition Agreements page

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Oregon rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Oregon?

Oregon allows employee noncompetition agreements only when listed conditions are all met; an agreement that does not meet them is void and unenforceable. (ORS 653.295(1)).

Is there a salary threshold for non-competes in Oregon?

Oregon's labor bureau publishes the inflation-adjusted minimum: $116,427 for 2025 and $119,541 for 2026 (salary and commissions must exceed this amount). (Oregon BOLI, Noncompetition Agreements page (ORS 653.295)).

Does Oregon have special non-compete rules for health care workers or other professions?

A noncompetition agreement restricting the practice of medicine or nursing is void and unenforceable between a medical licensee and the listed entities (including management services organizations and hospitals), subject to listed exceptions such as certain ownership interests. (ORS 653.297(2)(a)).