Are Non-Competes Enforceable in Oregon?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Only for exempt staff paid over $119,541 (2026); 12-month cap
An Oregon employee non-compete is void unless the employee is a salaried exempt (administrative, executive or professional) worker, the employer has a protectable interest, the employee's salary and commissions at termination exceed $119,541 (2026), notice was given in a written offer at least two weeks before starting (or the covenant came with a bona fide advancement), and a signed copy is given within 30 days after termination. Any term over 12 months is void. An employer can still enforce a covenant that misses the exempt or salary tests by paying garden-leave pay during the restriction. Since 2025 most non-competes for physicians, nurse practitioners, physician associates and naturopaths are void.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Oregon allows this non-compete only if it meets the statute's conditions — check each item below.
- Oregon: Only for exempt staff paid over $119,541 (2026); 12-month cap. ORS 653.295
- Enter annual earnings — Oregon voids non-competes below $119,541. Annual gross salary plus commissions at termination must exceed $100,533 adjusted for inflation: $119,541 for 2026 (BOLI) Oregon BOLI: Noncompetition agreements
- Duration: 12 months from termination; any longer term is void. ORS 653.295
Other Oregon rules to check
- Notice and timing: The employer must state in a written offer received at least 2 weeks before the first day of work that a non-compete is required (or enter it on a bona fide advancement), and must give the employee a signed copy within 30 days after termination.
- Pay during the restricted period: A covenant that fails the exempt-status or salary test is still enforceable (up to 12 months) if the employer agrees in writing to pay, during the restriction, the greater of 50% of the employee's annual gross base salary and commissions at termination or 50% of the inflation-adjusted threshold.
- Non-solicitation clauses: The statute's conditions do not apply to customer or employee non-solicitation covenants or to bonus restriction agreements.
- If a court finds it too broad: No settled rule we could confirm.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Oregon non-compete rules
- Employee pay threshold
- $119,541 Annual gross salary plus commissions at termination must exceed $100,533 adjusted for inflation: $119,541 for 2026 (BOLI)
- Non-exempt employees
- Non-competes are void for FLSA non-exempt (overtime-eligible) employees.
- Independent contractors
- Not covered by the statute.
- Duration
- 12 months from termination; any longer term is void
- Notice and timing
- The employer must state in a written offer received at least 2 weeks before the first day of work that a non-compete is required (or enter it on a bona fide advancement), and must give the employee a signed copy within 30 days after termination.
- Signed mid-employment
- Only if entered on a subsequent bona fide advancement.
- Garden leave / pay
- A covenant that fails the exempt-status or salary test is still enforceable (up to 12 months) if the employer agrees in writing to pay, during the restriction, the greater of 50% of the employee's annual gross base salary and commissions at termination or 50% of the inflation-adjusted threshold.
- Non-solicitation
- The statute's conditions do not apply to customer or employee non-solicitation covenants or to bonus restriction agreements.
- Overbroad covenants
- No settled rule we could confirm
Profession-specific rules
- VoidNon-competes restricting the practice of medicine or nursing are void for 'medical licensees' (physicians, nurse practitioners, physician associates and naturopathic physicians), including in contracts with MSOs and hospitals. Exceptions: licensees owning at least 1.5% of the practice, documented recruitment investments of at least 20% of salary (3-5 year limits), and licensees who do not provide direct clinical care. Applies to agreements entered before, on or after June 9, 2025. (effective June 9, 2025) ORS 653.297 (SB 951, 2025 c.295; HB 3410, 2025 c.572)
- LimitedFor on-air talent, the salary threshold does not apply if the employer spent at least 10% of the employee's prior-year salary promoting them on media it does not own, but the employer must pay the greater of 50% of salary or 50% of the threshold during the restriction. ORS 653.295(2)
Recent and pending changes
- January 1, 2026: Salary threshold rises to $119,541 for 2026. Oregon BOLI
- June 9, 2025: SB 951 voids most non-competes for physicians, nurse practitioners, physician associates and naturopaths; HB 3410 made it apply to existing agreements. ORS 653.297
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Oregon?
Only for exempt staff paid over $119,541 (2026); 12-month cap. An Oregon employee non-compete is void unless the employee is a salaried exempt (administrative, executive or professional) worker, the employer has a protectable interest, the employee's salary and commissions at termination exceed $119,541 (2026), notice was given in a written offer at least two weeks before starting (or the covenant came with a bona fide advancement), and a signed copy is given within 30 days after termination. Any term over 12 months is void. An employer can still enforce a covenant that misses the exempt or salary tests by paying garden-leave pay during the restriction. Since 2025 most non-competes for physicians, nurse practitioners, physician associates and naturopaths are void.
Is there a salary threshold for non-competes in Oregon?
Yes — $119,541. Annual gross salary plus commissions at termination must exceed $100,533 adjusted for inflation: $119,541 for 2026 (BOLI)
How long can a non-compete last in Oregon?
12 months from termination; any longer term is void
Did the FTC ban non-competes in Oregon?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Oregon? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Oregon.