1/30/25 New Minimum Salary for Enforcing Noncompetition Agreements in Oregon
January 30, 2025
The Oregon Bureau of Labor & Industries recently announced the updated minimum annual income amount for enforcing noncompetition agreements. In 2025, noncompetition agreements may be enforceable against employees who receive an annual gross income greater than $116,427.
As a reminder, noncompetition agreements are generally enforceable in Oregon if:
The employee receives written notice that the noncompetition agreement is a condition of employment at least two weeks before employment starts OR the employee enters into the agreement upon a bona fide advancement;
The employee is a salaried exempt employee with an annual income higher than a minimum amount that is adjusted annually for inflation;
The employer has a protectable interest; and
The employer provides a signed, written copy of the noncompetition agreement within 30 days after the employee’s termination.
Although the Federal Trade Commission (“FTC”) issued a rule banning enforcement of noncompetition provisions in April of 2024, the U.S. District Court for the Northern District of Texas blocked enforcement of the rule on August 20, 2024. The FTC appealed that decision, but the federal ban on enforcement of the rule remains in effect. For more information on the FTC’s noncompetition rule, see our August 26, 2024 E-Alert.
Employers should make sure that any employees covered by a noncompetition agreement receive an annual gross salary greater than $116,427 to ensure their noncompetition agreements remain enforceable.
For questions regarding noncompetition agreements, contact Ashley Korkeakoski-Sears at 503-276-2132 or asears@barran.com.