Oregon Non-Compete Agreements: What Employees Need to Know

Quick Answer: Oregon significantly restricts non-compete agreements. As of 2022, non-competes are void for employees earning less than $113,241 annually (adjusted for inflation). For others, non-competes are limited to 18 months and must be signed at hiring or with a bona fide advancement. Oregon provides some of the strongest employee protections against non-competes.

Oregon has made non-competes difficult to enforce.

Oregon's Non-Compete Restrictions

Salary Threshold (2024)

Non-compete void if:

• Employee earns less than threshold
• 2024 threshold: approximately $113,241
• Adjusted annually for inflation
• Based on annual salary

Maximum Duration

Limited to:

• 18 months maximum
• Shorter if reasonable
• Longer is void

Timing Requirements

Must be:

• Provided at hiring, OR
• With bona fide advancement, OR
• 2 weeks before first day

When Non-Competes Are Void

Below Salary Threshold

Automatically void:

• Under threshold amount
• No enforcement possible
• Regardless of what you signed

Terminated Without Cause

May be void if:

• Employer terminates without cause
• Laid off
• Position eliminated

Not Properly Executed

Invalid if:

• Not signed at right time
• No consideration provided
• Not in writing

Requirements for Enforceability

Legitimate Business Interest

Must protect:

• Trade secrets
• Confidential information
• Customer relationships
• Specialized training

Reasonable Scope

Must be limited:

• Geographic area appropriate
• Activities specifically restricted
• Time period (max 18 months)

Adequate Consideration

Must provide:

• Employment (at hiring)
• Advancement (during employment)
• Signed 2 weeks before start

Types of Restrictive Covenants

Non-Compete

Restricts:

• Working for competitors
• Limited time and geography
• Subject to Oregon restrictions

Non-Solicitation

Restricts:

• Soliciting employer's customers
• Recruiting employer's employees
• May be more enforceable

Non-Disclosure

Restricts:

• Sharing confidential information
• Trade secrets
• Often indefinite
• Separate from non-compete

If You Have a Non-Compete

Review the Agreement

Check for:

• Salary threshold
• When signed
• Duration
• Geographic scope
• Activity restrictions

Assess Enforceability

Consider:

• Are you above threshold?
• Was timing proper?
• Is scope reasonable?

Before Taking New Job

Steps:

• Review agreement carefully
• Consider seeking legal advice
• Don't assume unenforceable
• Negotiate if possible

Negotiating Non-Competes

At Hiring

Try to negotiate:

• Shorter duration
• Narrower geography
• Specific competitors only
• Carve-outs for certain work

During Employment

Require consideration:

• Don't sign without benefit
• Promotion or raise
• New role or responsibilities

At Departure

Options:

• Request waiver
• Negotiate release
• Document any changes

Employer Remedies

If You Violate

Employer may seek:

• Injunction stopping you
• Damages
• Attorney's fees

Temporary Restraining Order

Can be fast:

• May stop you from working
• While case is decided
• Serious consequence

Common Scenarios

Scenario 1: Below Threshold

Situation: Signed non-compete, earn $80,000.

Analysis: Below threshold. Non-compete is void. Can work for competitor.

Scenario 2: Signed During Employment

Situation: Asked to sign non-compete 2 years into job, no raise.

Analysis: Lacks consideration. May be unenforceable.

Scenario 3: Laid Off

Situation: Had valid non-compete, then laid off.

Analysis: Oregon law may void non-compete when terminated without cause.

Scenario 4: 3-Year Non-Compete

Situation: Non-compete says 3 years.

Analysis: Maximum is 18 months. 3 years is void/reduced to 18 months.

Garden Leave

What It Is

Employer pays you:

• During non-compete period
• To not work for competitor
• At least 50% of salary

Oregon Requirement

May be required:

• For certain non-competes
• If not satisfied at signing
• Alternative to void

Federal FTC Rule

2024 FTC Ban

Federal development:

• FTC attempted to ban non-competes
• Currently blocked by courts
• Monitor for updates

Oregon Law Remains

Still applies:

• Oregon restrictions still in effect
• May provide more protection
• State law controls in Oregon

Frequently Asked Questions

Can my employer enforce my non-compete?

Depends on your salary, when you signed, and reasonableness of terms.

What is the salary threshold?

Approximately $113,241 (2024), adjusted annually.

What if I was fired?

Oregon may void non-compete when terminated without cause.

Can I negotiate a non-compete?

Yes. You can negotiate terms at hiring or request changes later.

What about non-solicitation agreements?

Different from non-competes. May be enforceable even if non-compete isn't.

Related Topics

• Oregon Employment Law Hub
• Oregon Severance Agreements
• Oregon At-Will Employment
• Oregon Wrongful Termination

Take Action

If you have non-compete concerns:

1. Locate your agreement
2. Check salary against threshold
3. Review when you signed
4. Assess scope and duration
5. Consult employment attorney before acting

Legal Disclaimer

This article provides general information about non-compete agreements in Oregon and is not legal advice. For specific advice, consult a licensed Oregon employment attorney.

For official information:

• Oregon State Bar: https://www.osbar.org