Non-Compete Agreement in Oregon
State-specific overview · Employment Law
Oregon severely restricts non-competes; they are generally unenforceable except for narrow situations involving sale of a business or partnership dissolution.
How Oregon treats Non-Compete Agreement
Oregon law (ORS 653.295) makes non-compete agreements void and unenforceable as a matter of public policy for most employment relationships. The primary exceptions allow non-competes in connection with the sale of a business, the dissolution of a partnership, or the sale of a professional practice. Even in permitted situations, the restrictions must be reasonable in time, area, and line of business.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Oregon.