Oregon non-compete law: ORS 653.295 for recruiters

Oregon allows employee non-competes, but only when every one of a list of conditions is met, and since 2022 an agreement that misses any of them is simply void. The conditions that matter most to recruiters are about timing and pay: the employer has to tell the person in a written offer, received at least two weeks before they start, that a non-compete is a condition of employment; the person must be a salaried exempt employee; and their salary plus commissions at termination must exceed an indexed figure, which the Bureau of Labor and Industries (BOLI) lists as $119,541 for 2026. The restriction can last no more than 12 months.

For the screening questions, see non-compete questions for candidates. For non-solicits, which Oregon's statute leaves out, see non-solicitation clauses for recruiters.

When an Oregon non-compete is void

ORS 653.295(1) says a noncompetition agreement between an employer and employee "is void and unenforceable unless" all of the following are true:

1. Notice or promotion. The employer informed the employee "in a written employment offer received by the employee at least two weeks before the first day of the employee's employment" that a non-compete is required as a condition of employment, or the agreement was entered into upon a later "bona fide advancement."
2. Exempt status. The employee is a person described in ORS 653.020(3), which BOLI summarizes as a salaried exempt employee.
3. Protectable interest. The employee has access to trade secrets or to competitively sensitive confidential business or professional information, such as product development or launch plans, marketing strategy or sales plans. (Separate rules cover on-air broadcast talent.)
4. Copy after termination. Within 30 days after employment ends, the employer provides a signed, written copy of the agreement's terms.
5. Pay. The employee's annual gross salary and commissions at termination exceed $100,533, adjusted annually for inflation.

BOLI's noncompetition agreements page explains that under SB 169 (2021), agreements entered into on or after January 1, 2022 that do not meet the criteria "are simply void," so the employee does not have to take any step to invalidate them. Before 2022, such agreements were "voidable."

The pay figure by year

The test looks at pay at the time of termination, in the calendar year of termination, so the relevant figure is the one for the year the person leaves, not the year they signed. BOLI computes the adjustment from the Consumer Price Index for All Urban Consumers, West Region.

Duration, the pay-during-restriction option and exclusions

• 12 months. Under ORS 653.295(3), the term may not exceed 12 months from termination; any excess "is void and may not be enforced by a court of this state."
• Paying to enforce. Under subsection (7), even if the employee is not exempt or is below the threshold, the agreement can be enforced for up to 12 months if the employer agrees in writing to pay, for the restricted period, the greater of 50 percent of the employee's annual gross base salary and commissions at termination, or 50 percent of the adjusted threshold.
• Written agreements only. The statute defines a noncompetition agreement as a written agreement.
• What it does not cover. Subsection (5) excludes bonus restriction agreements and "a covenant not to solicit employees of the employer or solicit or transact business with customers of the employer."
• Health care. BOLI notes that SB 951 (2025), as modified by HB 3410, added separate limits on non-competes, nondisparagement and nondisclosure agreements with medical licensees, now in ORS 653.297.

ORS 653.295 does not contain a choice-of-law or venue provision like those in Washington, Colorado, Minnesota or Massachusetts. A candidate whose agreement names another state's law is a question for counsel.

Oregon and Washington in the same metro

Recruiters filling roles around Portland and Vancouver often see both states' rules in one search. They are built differently:

Which state's rule governs a cross-river candidate depends on the agreement and where the person lived and worked, which is exactly the kind of question to pass to counsel. The details for the other side are in Washington non-compete law.

Recruiting an Oregon candidate

Oregon's salary history ban applies, so do not ask what the candidate earns to test the threshold; see the Oregon salary history ban guide. You can ask about timing, role and paperwork, which are the facts counsel will need first.

OREGON CANDIDATE — restrictive agreements

1. "Have you signed a non-compete, a non-solicit, or a confidentiality
    agreement that could affect this role?"
2. "When did you first learn a non-compete was required: in your
    written offer, at least two weeks before you started, or later?"
3. "Was it signed when you were hired, or with a promotion?"
4. "Does it say anything about paying you while it applies?"
5. "How long does it last after you leave?"
6. "Could the hiring company's lawyer see it, as far as it allows?"
Always: "We don't want any confidential information or client lists
from your current employer."

• Do not calculate the threshold for the candidate, or ask for their W-2 to do it.
• Do not say the agreement is void because it arrived late. Record when it arrived, and suggest the candidate check with their own lawyer.
• Do note client and colleague non-solicits separately; Oregon's non-compete statute does not govern them.

When your client is the Oregon employer

The two-week rule is the one recruiters can break by accident. If a client wants a non-compete, the written offer that says so has to reach the candidate at least two weeks before day one. A fast-moving offer with a start date ten days out does not meet that requirement for a new-hire agreement. Raise it when the start date is being set, not after the offer is signed. Remind the client, too, that it has to send a signed copy of the terms within 30 days after the employee eventually leaves.

Example only: a client extends a written offer on Monday with a start date the following Monday and a non-compete attached. On the statute's wording, the two-week requirement is not met for that offer. Moving the start date, or dropping the non-compete, is a decision for the client and its counsel.

Agencies and their own recruiters

The same conditions apply when an agency asks its own Oregon recruiters to sign a non-compete: written notice in the offer at least two weeks before the start date or a bona fide promotion, exempt status, a protectable interest, the 30-day copy after departure, and pay above BOLI's figure, or the written promise to pay during the restricted period. Client and candidate non-solicits are outside ORS 653.295, so those clauses need their own review.

Federal status

As of October 2026 no federal ban is in force. The FTC's Noncompete Rule page records that a court stopped the rule on August 20, 2024; the Commission voted on September 5, 2025 to dismiss its appeals and accede to the vacatur, as BOLI's page also notes; and a February 12, 2026 notice removed it from the Code of Federal Regulations. The FTC continues individual cases, such as its April 2026 Rollins order.

Checklist

• Date and manner of notice captured: written offer two weeks before start, or promotion.
• Exempt status and role type noted; health care roles flagged for ORS 653.297.
• No pay questions asked to test the BOLI figure.
• Client start dates set with the two-week rule in mind when a non-compete is planned.
• BOLI's table and ORS 653.295 re-checked before relying on this page; licensing in the Oregon staffing agency license guide.