Oregon Non-Compete Agreement
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Oregon Legal Requirements
Key OR statutes and obligations that apply to your non-compete agreement.
Requirements
- Governed by ORS §653.295; the agreement must be provided at the time of a written employment offer or when a current employee is promoted (advance written notice required)
- The restriction period is capped at 18 months from the date of the employee's termination
- The employer must pay the employee's base salary throughout the entire restriction period ('garden leave pay') or the non-compete is void
Restrictions & Limits
- Non-competes are void against employees who earn less than the median Oregon family income at the time of termination (approximately $100,533 in 2023 — this figure is updated periodically)
- Non-competes cannot apply to employees who are terminated without cause by the employer
- Garden leave payment obligation makes Oregon non-competes economically costly — employers often use trade secret and non-solicitation agreements instead
Official Statute References
Primary Oregon statutes governing this document type.
Oregon Non-Compete Agreement FAQ
Common questions about non-compete agreements under Oregon law.
What is Oregon's 'garden leave' non-compete requirement?
Under ORS §653.295, if a non-compete agreement is enforceable, the employer must pay the employee their base salary for the entire duration of the restriction period (up to 18 months). If the employer fails to make these payments, the non-compete becomes void. This makes Oregon non-competes among the most employer-costly in the US.
Who is exempt from Oregon non-compete agreements?
Employees earning less than the median Oregon family income at termination cannot be bound by a non-compete. Additionally, employees terminated without cause are exempt. Executives and key employees with access to trade secrets who earn above the income threshold are the primary candidates for enforceable non-competes.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.