An Oregon non compete agreement is a written contract in which a worker promises not to work for a competitor for a set time after leaving a job. Oregon law makes such an agreement void and unenforceable unless the conditions in the statute are met.[1.1] One condition caps the term at 12 months from the date the employee's employment ends.[1.3] Build this non compete agreement Oregon template online or download the free PDF below.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Oregon law. If you notice an error or outdated information, please contact us.
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The FormsPal Oregon non compete agreement is a form between a company and a worker, who can be an employee or an independent contractor. It is the Oregon version of our general non compete agreement template. Fill it in with the online builder or on the downloaded PDF.
The form asks for the period after the job in years. Oregon law voids any part of a term beyond 12 months from the employee's termination, so enter one year at most.[1.3]
In practice, businesses often use an agreement like this to protect:
Oregon's non-compete statute does not restrict anyone's right to protect trade secrets or other proprietary information by an injunction or any other lawful means under other laws.[1.6]
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In Oregon, a non-compete between an employer and an employee is void and unenforceable under Or. Rev. Stat. § 653.295 unless the statute's conditions are met, such as a 12-month cap on the term and a salary threshold or pay during the restricted time. Learn more about the most common states requested by our users in terms of NCAs.
Oregon law makes a non compete agreement between an employer and an employee void and unenforceable unless the statute's conditions are met.[1.1] Those conditions include a protectable interest, written notice, a 12-month cap on the term, and a pay requirement.
A signature does not make the agreement valid. If the conditions are not met, the agreement is void and unenforceable.[1.1]
The statute sets these conditions and limits:
Oregon also sets a pay alternative. An employer relying on it must pay the employee, for the period of restriction, the greater of two amounts. One is compensation equal to at least 50 percent of the employee's annual gross base salary and commissions at the time of termination. The other is 50 percent of $100,533, adjusted annually for inflation.[1.3]
The length of the restriction has its own cap. The statute reads:
The term of a noncompetition agreement may not exceed 12 months from the date of the employee's termination. The remainder of a term of a noncompetition agreement in excess of 12 months is void and may not be enforced by a court of this state.
In plain terms, only the first 12 months after the job ends can be enforced.[1.3]
Under ORS 653.295(5)(b), these conditions do not apply to a covenant not to solicit the employer's employees or to solicit or transact business with its customers. A clause limited to that kind of solicitation does not have to meet the notice, pay, protectable-interest and 12-month rules.[1.7]
Oregon has a separate provision for a non compete agreement between a medical licensee and another person that restricts the practice of medicine or the practice of nursing. Such an agreement is valid and enforceable to the extent and under the terms provided in ORS 653.295 if the statute's conditions are met.[1.4] The statute names two situations:
A recruitment investment means costs to an entity that are equivalent to 20 percent or more of the annual salary of an employee with whom the entity has entered into a noncompetition agreement. The costs count when the entity incurs them for purposes the statute lists, such as marketing to and recruiting the employee, or providing a sign-on or relocation bonus.[1.4]
These limits apply to covered agreements whether the medical licensee entered into them before, on or after June 9, 2025, the effective date of chapter 295, Oregon Laws 2025.[1.5]
The term of a non compete agreement in Oregon may not exceed 12 months from the date of the employee's termination. The part of a term beyond 12 months is void, and a court of this state may not enforce it.[1.3]
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General information, not legal or tax advice.
