Non-Compete Laws in Oregon
Restricted by income threshold
Oregon restricts non-competes for employees earning below a wage threshold ($116,427 for 2025, adjusted annually for inflation) and home healthcare workers. Enforceable non-competes are limited to 12 months maximum. A 2025 law also voids non-competes for medical licensees unless certain ownership conditions are met.
Key details
| Enforceability | Restricted by income threshold |
|---|---|
| Maximum duration | 12 months |
| Income threshold | 119541 — Workers earning below $119,541 (2026, adjusted annually based on CPI) are protected. |
| Banned industries | Home healthcare workers and medical licensees (with limited exceptions) are protected. |
| Blue pencil doctrine | Varies |
| Garden leave required | Yes — Garden leave clauses are enforceable in Oregon. |
| Key statute | Or. Rev. Stat. §653.295; ORS §§58.375-376 |
What this means for you
If you earn below the threshold, your non-compete is void. Even above the threshold, non-competes are limited to 12 months.
Non-compete laws in Oregon: what you need to know
Oregon has one of the most developed non-compete frameworks in the country. The state limits enforceable non-competes to a maximum of 12 months and restricts them to employees earning above a minimum income threshold ($119,541 per year in 2026, adjusted annually for inflation). These twin restrictions ensure that non-competes in Oregon are both time-limited and reserved for higher-earning workers who are more likely to have access to genuine trade secrets.
Oregon's 2025 legislative session brought significant changes for healthcare workers. Senate Bill 951, passed as an emergency measure effective June 9, 2025, imposes new limitations on non-competes for physicians, physician assistants, and nurse practitioners. The law amends the general non-competition statute to add healthcare-specific restrictions, reflecting the state's concern about provider shortages and patient access to care.
For workers earning above the threshold, Oregon law requires that non-competes be entered into at the time of initial employment or upon a subsequent bona fide advancement. The employer must provide the terms of the non-compete in a written employment offer at least two weeks before the start of employment, or alternatively, the agreement must be entered into upon a subsequent bona fide advancement of the employee. Simply asking a current employee to sign a non-compete without a promotion or other advancement may render the agreement unenforceable.
Oregon does not use the blue pencil doctrine. If a court finds that a non-compete is overly broad, it will void the agreement rather than rewriting it to make it reasonable. This incentivizes employers to draft narrow, carefully tailored agreements. Workers whose non-competes exceed 12 months or apply to earnings below the threshold can be confident that the entire agreement is likely unenforceable.
Home healthcare workers are also specifically protected in Oregon and cannot be bound by non-compete agreements regardless of their income. This protection recognizes the critical role these workers play in the healthcare system and the harm that non-competes can cause in a field already facing severe staffing shortages.
More Oregon workplace laws
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Frequently asked questions about non-compete laws in Oregon
The minimum income threshold for an enforceable non-compete in Oregon is $119,541 per year for 2026, adjusted annually based on the Consumer Price Index. Workers earning below this amount cannot be bound by a non-compete.
Non-compete agreements in Oregon are limited to 12 months. This was reduced from the previous 18-month maximum effective January 1, 2022.
Oregon enacted new restrictions on physician non-competes in 2025. The law imposes specific limitations on non-competes for physicians, physician assistants, and nurse practitioners. Consult an employment attorney to evaluate how these restrictions apply to your specific agreement.
Generally, a non-compete must be entered into at the time of initial employment or upon a subsequent bona fide advancement. Simply asking a current employee to sign a non-compete without a promotion or other advancement may not provide adequate consideration to make the agreement enforceable.
No. Oregon does not use the blue pencil doctrine. If your non-compete is found to be overly broad, the court will void it entirely rather than rewriting it. This works in the employee's favor, as employers cannot rely on courts to fix poorly drafted agreements.