Oregon has progressively restricted non-compete agreements over the years, and from January 1, 2022, they are void unless a strict set of conditions is met. The most significant: the employee must earn above a salary threshold (approximately $100,533 in 2023), hold an administrative/professional/executive role, and the employer must provide a signed copy of the agreement within 30 days of termination. Miss any condition and the restriction is void.
What is a Enforceability?
Under Oregon Revised Statutes 653.295, a non-compete is void unless all of the following apply: the employee is employed in an administrative, executive, or professional capacity as defined by the FLSA; the employee earns above the annual threshold (adjusted for inflation); the employer advises the employee in a written job offer at least two weeks before employment starts, or the agreement is entered into upon a bona fide advancement; the maximum duration is 12 months; and the employer provides a signed, written copy of the non-compete within 30 days of termination. If the employer fails to provide that post-termination copy, the agreement is voidable.
Red flags to watch for
Oregon limits enforceable non-competes to employees in administrative, executive, or professional roles as defined by the FLSA. Hourly or non-exempt employees cannot be bound.
Oregon caps non-competes at 12 months from the date of separation. Any longer restriction is void on its face.
For new hires, the non-compete must appear in the written job offer provided at least 2 weeks before employment begins. Presenting it on day one or after acceptance is a basis for voiding it.
The employer must send a signed copy of the non-compete to the employee within 30 days of separation. Failure to do so makes the agreement voidable at the employee's option.
Oregon sets an annual earnings threshold (approximately $100,533 in 2023, adjusted annually) below which non-competes are void. Check whether your compensation exceeds this figure.
Your legal rights
Under ORS 653.295, a non-compete that fails any of the statutory conditions is void and unenforceable. Employers cannot seek injunctions or damages for breach of a void non-compete. If the employer fails to provide the signed written copy within 30 days of termination, the agreement becomes voidable — meaning you can elect to void it even if it was otherwise valid. Oregon courts do not blue-pencil non-competes; they either enforce or void them entirely.
Questions to ask before you sign
- 1Is my role classified as administrative, executive, or professional under the FLSA?
- 2Does my compensation exceed the current Oregon annual threshold?
- 3Was the non-compete disclosed in a written offer at least 2 weeks before my start date?
- 4Does the restriction last 12 months or less?
- 5Did the employer provide a signed copy of the non-compete within 30 days of my last day?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.