Oregon has implemented comprehensive restrictions on non-compete agreements through ORS § 653.295 (updated in 2021), making it one of the most employee-protective states regarding non-competes. Under Oregon law, non-competes are void for workers earning less than $113,217 per year (2024, indexed annually to Oregon’s average annual wage). Additionally, all non-competes in Oregon are capped at 12 months maximum duration. Oregon also requires that employers provide non-competes to employees at least 2 weeks before the start date and mandate “garden leave” pay—employers must pay workers at least 50% of their last monthly base salary during the non-compete period. Physicians are entirely exempt from non-competes. If you work in Oregon and have signed a non-compete, understanding these protections is critical.
Oregon’s law reflects a strong policy protecting worker mobility and ensuring that non-competes do not unfairly restrict workers’ ability to earn a living. The statutory framework is clear and comprehensive, giving employees substantial protections compared to most states.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | Enforceable ONLY for workers earning ≥ $113,217/year (2024); max 12 months |
| Max Duration | 12 months (void if longer) |
| Income Threshold | $113,217/year (2024, indexed annually); below this = void |
| Blue-Pencil Doctrine | Not applicable; statutory cap and threshold apply absolutely |
| Garden Leave | Required: employer must pay 50% of employee’s last monthly base salary |
What Makes a Non-Compete Enforceable in Oregon
Under ORS § 653.295, a non-compete is enforceable only if:
- The employee’s annual compensation is at least $113,217 (2024 threshold, indexed annually to Oregon’s average annual wage). Workers earning less are absolutely protected; their non-competes are void.
- The non-compete duration does not exceed 12 months. Any non-compete lasting longer than 12 months is void.
- The employee received a copy at least 2 weeks before the start date (or before a material change in terms if an existing employee). Providing the non-compete after employment begins voids it.
- The employer commits to garden leave payment: During the non-compete period, the employer must pay the employee at least 50% of the employee’s last monthly base salary, or the non-compete is unenforceable.
- The employee is not a physician. Physicians are absolutely exempt under ORS § 58.185.
If any of these requirements is not met, the non-compete is void.
Income Thresholds and Worker Exemptions
Income threshold: Non-competes are void for all workers earning less than $113,217 per year (2024). This threshold is indexed annually to Oregon’s average annual wage, so it increases each year. If your annual compensation (salary plus other remuneration) is below this threshold, your non-compete is absolutely unenforceable, regardless of its terms.
Physician exemption: Physicians cannot be required to sign non-competes under ORS § 58.185. This protects doctors’ mobility and ensures patients can access the healthcare provider of their choice.
All other workers: Workers earning $113,217 or more can be subject to enforceable non-competes, but only if the statutory requirements are met.
What Happens If You Violate One
If you violate an enforceable non-compete in Oregon, your employer can sue for damages. However, if the non-compete violates any statutory requirement—such as lacking 2 weeks’ notice, exceeding 12 months, or lacking garden leave payment—it is void and you owe nothing.
Additionally, Oregon law allows you to sue your employer for damages and attorney’s fees if the employer enforces a void non-compete or violates the statutory requirements. This creates a powerful deterrent against employer overreach.
Real Situations in Oregon
Portland executive scenario: A marketing director in Portland earning $150,000 per year signed a non-compete that lasted 18 months and required the employer to pay 50% of her salary during the restriction period. When she left after six months, her employer attempted to enforce the non-compete. However, because the 18-month duration exceeded Oregon’s 12-month cap, the court voided the non-compete entirely. The director was free to work.
Eugene healthcare professional case: A nurse practitioner in Eugene earning $95,000 per year signed a non-compete with a hospital system that restricted her from practicing within 30 miles for 12 months. Although the 12-month duration complied with Oregon law, the employee’s annual compensation ($95,000) fell below the 2024 threshold ($113,217). The hospital attempted enforcement, but the court found the non-compete void because it was applied to a below-threshold worker. The nurse practitioner was free to work immediately.
Salem tech company situation: A software engineer in Salem earning $120,000 per year signed a non-compete effective immediately (no 2-week notice period). Although the compensation and duration (12 months) technically complied with Oregon law, the lack of 2 weeks’ advance notice voided the agreement. The engineer could work for a competitor. The court also awarded attorney’s fees against the employer for attempting to enforce a defective non-compete.
Common Mistakes Oregon Employees Make
Not checking your compensation against the threshold. If you earn less than $113,217 per year (2024), your non-compete is void. Do not let it restrict your career decisions. Check your compensation and compare it to the indexed threshold.
Assuming a longer-duration non-compete is enforceable. Any non-compete lasting more than 12 months is void in Oregon. If your non-compete says 18 months, 2 years, or longer, it is unenforceable.
Accepting employment without confirming garden leave payment. If your employer enforces a non-compete but refuses to pay 50% of your salary, the non-compete becomes unenforceable. Do not accept post-employment restrictions without confirmed payment.
What to Do If You Have a Non-Compete
- Check your annual compensation against the current Oregon threshold (2024: $113,217). If you earn less, the non-compete is void.
- Review the duration. If the non-compete exceeds 12 months, it is void.
- Verify you received the agreement at least 2 weeks before starting work or a material change in terms. If not, it is void.
- Confirm garden leave terms. If the non-compete restricts you but your employer is not paying 50% of your last monthly salary, it is unenforceable.
- Consult an Oregon employment attorney if any requirement is not met or if your employer threatens enforcement.
Oregon Attorney General (employment law inquiries): https://www.oregon.gov/ag/
Oregon Bureau of Labor and Industries (non-compete enforcement): https://www.oregon.gov/boli/
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Disclaimer: This article is informational and not legal advice. Oregon’s non-compete law under ORS § 653.295 is strictly enforced. Income thresholds are indexed annually and change each year. For your specific situation, consult a licensed Oregon employment attorney. Neither GuacamoleBlog nor its authors provide legal services.