# Oregon non-compete law

> Counteroffer · Answers · non-compete
> Source: https://trycounteroffer.com/answers/oregon-non-compete-law


**Short answer:** Oregon non-competes are governed by ORS 653.295, which requires a salary threshold tied to median family income (~$108,575 for 2024), caps duration at 12 months, and demands specific written notice at the offer of employment or with new consideration. Bona fide protectable interests are required. Agreements failing any requirement are unenforceable.

## On this page
- [Salary threshold tied to median family income](#salary-threshold-tied-to-median-family-income)
- [12-month duration cap](#12-month-duration-cap)
- [Notice requirements](#notice-requirements)
- [Bona fide protectable interest](#bona-fide-protectable-interest)
- [Garden leave option](#garden-leave-option)

## Salary threshold tied to median family income

Oregon's non-compete statute, ORS 653.295, sets a salary threshold for non-compete enforceability tied to the median family income for a four-person family in Oregon, as published by the U.S. Census Bureau.

For 2024, the threshold is approximately $108,575 in annualized earnings. The threshold is recalculated annually based on the most recent Census figures.

Employees earning below the threshold cannot be bound by a non-compete. Earnings include base salary, commissions, and bonuses, computed on an annualized basis from the employee's W-2 reported income.

## 12-month duration cap

Oregon imposes a hard 12-month duration cap on non-competes. Any restriction longer than 12 months is unenforceable as written.

The cap was tightened in recent years from earlier statutory limits. Pre-2008 Oregon agreements may have longer durations and pre-date some of the statutory requirements.

## Notice requirements

The employer must provide written notice of the non-compete at the offer of employment, no later than two weeks before the employee's start date.

For mid-employment additions, the employer must:

- Provide written notice
- Provide additional consideration beyond continued employment
- Make the agreement effective only after a reasonable period

Failure to comply with notice requirements voids the non-compete. Many Oregon employers struggle with the two-week notice requirement when hiring rapidly or when offer-to-start time is compressed.

## Bona fide protectable interest

In addition to procedural requirements, the non-compete must be tied to a bona fide protectable interest. The statute and case law recognize:

- Trade secrets
- Confidential customer or business information
- Specialized training the employer provided

Generic competitive concern, customer relationships the employee developed independently, or general industry knowledge do not qualify.

The protectable interest analysis is similar to other reasonableness-based states but with the added requirement that the interest be specifically identifiable and bona fide.

## Garden leave option

Oregon allows employers to enforce a non-compete against an employee earning below the salary threshold by paying garden leave during the restriction period. The garden leave must equal at least 50% of the employee's annual base salary or the salary threshold, whichever is greater.

In practice, employers rarely use this option for ordinary employees because the cost typically exceeds the enforcement value. The option is more commonly used for senior executives where the threshold is irrelevant anyway.

## Customer non-solicits

Customer non-solicits in Oregon are generally subject to similar requirements as non-competes but with somewhat lower scrutiny. The reasonableness standard applies, and the 12-month duration cap is often observed.

## What to do next

If you're an Oregon employee under a non-compete, the diagnostic is: (1) Check your earnings against the current threshold, (2) Verify the duration is 12 months or less, (3) Confirm you received written notice at offer or with new consideration, (4) Identify the bona fide protectable interest the employer claims.

If you want a delivered analysis of your specific Oregon agreement, we deliver one in 24 hours for $199. See [Non-Compete Review](https://trycounteroffer.com/non-compete).

## Sources

- ORS 653.295 (Oregon non-compete statute)
- Current Oregon median family income data from U.S. Census Bureau

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## Related answers
- [Are non-competes enforceable?](https://trycounteroffer.com/answers/are-non-competes-enforceable)
- [Washington non-compete law and salary threshold](https://trycounteroffer.com/answers/washington-non-compete-law)
- [Colorado non-compete law](https://trycounteroffer.com/answers/colorado-non-compete-law)

## Get your contract reviewed
If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/non-compete.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

_Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice._