Jessica JohnsonYour new employer hands you an employment offer — along with a non-compete clause that bars you from working for a competitor for two years. Do you sign? In Oregon, the answer depends on whether that agreement meets five specific statutory requirements. Miss even one and the entire non-compete is void from the moment of signing — legally unenforceable regardless of what you agreed to. Oregon's approach puts it among the nation's most protective states for worker mobility, just one step behind California and Washington, which ban non-competes entirely. Understanding where Oregon stands — and how it compares to other states — is essential for employees negotiating offers and employers drafting policies.
Oregon's Five Non-Compete Requirements Under ORS 653.295
Oregon non-compete agreements are governed by ORS 653.295, last significantly overhauled by House Bill 4059 in 2021. Under current law, a non-compete is enforceable ONLY if all five of the following conditions are satisfied:
1. Maximum Duration: 12 Months
The non-compete may not restrict the employee for more than 12 months after the end of employment. Any clause specifying 18 months, 24 months, or "the duration of the employer's competitive interest" is automatically void and unenforceable.
2. Salary Threshold
The employee must earn at least the greater of $100,533 per year or twice the applicable minimum wage at the time the agreement is signed. This threshold adjusts annually with the Consumer Price Index (CPI). In 2025, the applicable threshold is $100,533. Employees earning below this amount cannot enter into enforceable non-competes regardless of their role or title.
3. Advance Notice Requirement
The employer must provide at least two weeks' written advance notice that the non-compete is a condition of employment — either before or during a bona fide offer of employment or a promotion/advancement offer. Presenting the agreement on the first day of work, or mid-employment without consideration, does not satisfy this requirement.
4. Garden Leave or Equivalent Compensation
If the employer wants to enforce the agreement, they must either:
- Place the employee on paid garden leave for the entire non-compete period (paying the employee's salary while barred from competing); OR
- Provide additional mutually agreed-upon compensation equivalent to the salary during the restricted period.
This requirement is particularly significant — it means a valid Oregon non-compete is not a free restriction on employee mobility. The employer must pay for it.
5. Protectable Business Interest
The employer must show a legitimate protectable interest — trade secrets, proprietary information, or similar business interests that justify the restriction.
À retenir: An Oregon non-compete that fails even one of these five conditions is void and unenforceable from the moment of signing. The employee is not bound by it, even if they signed it willingly. No court order is needed — the agreement simply has no legal effect.
Oregon vs. Other States: The Non-Compete Landscape
Oregon's framework is deliberately worker-protective, but it sits within a broader national patchwork where state laws vary dramatically.
| Factor | Oregon | California | Washington (post-2024) | New Jersey | Florida |
|---|---|---|---|---|---|
| Non-competes allowed? | Yes (limited) | No — banned | No — banned | Yes (limited) | Yes (broadly enforced) |
| Maximum duration | 12 months | N/A | N/A | 12 months | Rebuttable presumption |
| Salary threshold | $100,533+/yr | N/A | $116,593+/yr | None | None |
| Advance notice required? | Yes — 2 weeks | N/A | Yes | No | No |
| Garden leave or pay? | Yes — mandatory | N/A | Yes — mandatory | No | No |
| Void automatically if conditions not met? | Yes | Fully banned | Yes | Judicially modified | Court adjusts to "reasonable" |
California has banned non-competes almost entirely since 1872 (Business and Professions Code §16600). Any Oregon employee who moves to California and is then bound by an Oregon non-compete will find it unenforceable in California courts. New Jersey non-compete agreements take a more permissive approach — courts apply a reasonableness standard without the statutory requirements Oregon mandates.
Florida occupies the opposite end of the spectrum: Florida non-compete agreements are broadly enforceable under §542.335, and courts routinely grant injunctions to enforce them. A Florida employer can enforce a 2-year non-compete against a $40,000/year employee without paying garden leave — something that would be entirely void in Oregon.
The Oregon-Washington border is economically significant: Washington effectively banned non-competes for employees earning under $116,593/year in 2020. Workers in the Portland metro area who cross to Vancouver, WA for new employment face the intersection of both states' laws — generally, the law of the state where the work is performed governs.
Enforceable vs. Void: Two Oregon Scenarios
Scenario A — Enforceable non-compete:
Maria is a senior software engineer at a Portland technology firm earning $155,000/year. Her employer presents a non-compete agreement three weeks before her start date (satisfying the notice requirement), bars her from working for direct competitors for 12 months (satisfying the duration limit), and commits to paying her full salary as garden leave if it seeks to enforce the agreement (satisfying the compensation requirement). The agreement describes specific trade secrets Maria will access as the protectable interest. All five requirements are met. If Maria leaves and immediately joins a direct competitor, her employer can enforce the non-compete.
Scenario B — Automatically void:
James is a barista at a Portland coffee chain earning $35,000/year. His employer includes a non-compete clause in his employment paperwork. Regardless of whether the clause is otherwise well-drafted — duration, notice, or even a promise of garden leave — the agreement is automatically void because James earns below the $100,533 salary threshold. No court will enforce it. James can work for a competing coffee chain the day after he leaves with no legal exposure.
The grey zone: An employee earning $110,000/year received their non-compete on the day they signed their offer letter (same day, not two weeks in advance). The notice requirement was not met. The agreement is void, even though the salary and duration requirements were satisfied.
What to Do If You Signed an Oregon Non-Compete
- Review the agreement: Does it meet all five requirements? Salary threshold, duration, advance notice, garden leave obligation, and protectable interest?
- Check the date you received it: Was it at least two weeks before your start date or promotion effective date?
- Check your salary at the time of signing: Were you earning over $100,533?
- Look for the garden leave clause: Does the employer actually commit to paying garden leave or equivalent if they enforce it?
- Consult an employment attorney: If any requirement is missing, the agreement may already be void. Oregon attorneys who specialize in employment law can provide a written analysis quickly, often for a flat consultation fee.
Legal disclaimer: This article provides general information about Oregon non-compete agreements for educational purposes. It does not constitute legal advice. Oregon law on non-competes is subject to legislative change and case-by-case judicial interpretation. Consult a licensed Oregon employment attorney for guidance specific to your agreement.
Non-Solicitation Agreements: Not the Same as Non-Competes
Oregon's ORS 653.295 governs non-compete agreements — restrictions on where an employee can work. A related but distinct category, non-solicitation agreements, are treated differently. Oregon law permits non-solicitation clauses prohibiting a former employee from:
- Soliciting the employer's customers with whom they had direct contact during employment, OR
- Soliciting the employer's employees to leave
Non-solicitation agreements in Oregon do not require the same five-part test as non-competes. They are generally enforceable if they are reasonable in scope and duration. An employee who signs a valid customer non-solicitation agreement cannot proactively target former clients after leaving — even if their non-compete would have been void under ORS 653.295.
The practical implication: even when a full non-compete is void due to the salary threshold or missing requirements, a customer non-solicitation clause in the same agreement may still be enforceable. Employees and employers should treat these as separate provisions and evaluate each independently.
