Oregon’s New Playbook: Upping the Ante on Noncompetition Agreements

Hey, Warriors and Bosses!

As of January 2025, the Oregon Bureau of Labor and Industries (BOLI) has announced a new minimum salary threshold for non-competition agreements. To be enforceable, an employee’s annual gross salary and commissions at the time of termination must now exceed $116,427, up from the previous threshold of $113,241.

But wait, there’s more! Meeting this salary benchmark is just the first hurdle. Employers must also navigate the following requirements to ensure their noncompetition agreements hold water:

• Advance Notice: Inform new hires in writing at least two weeks before their start date that a noncompetition agreement is a condition of employment. Alternatively, such an agreement can be introduced following a bona fide promotion of an existing employee.
• Time Limit: The noncompetition agreement’s duration cannot exceed 12 months from the employee’s termination date.
• Protectable Interest: The employer must have a legitimate business interest, such as the employee having access to trade secrets or sensitive confidential information.
• Documentation: Provide the employee with a signed, written copy of the noncompetition agreement’s terms within 30 days after their termination date.

Failing to meet these stipulations renders the noncompetition agreement void—meaning it’s as if it never existed. Employees don’t need to take any action to nullify an agreement that doesn’t comply; it’s automatically unenforceable. It’s also worth noting that these rules don’t apply to bonus restriction agreements or non-solicitation agreements.

Given these updates, employers are advised to consult with legal counsel to ensure their restrictive covenants in Oregon are up to par.

Be Audit-Secure™!

Lisa Smith, SPHR, SCP