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Oregon Severance Laws — Updated 2026

Oregon Severance Rights: Restrictive Non-Compete Law & High-Wage Requirements

Oregon restricts non-competes to high-wage earners and requires strict hiring-time agreements. Understand your non-compete leverage and severance rights.

Severance Mandated?

No — But Negotiable

Non-Competes

Restricted

State WARN Act

No State WARN

Typical Severance

Oregon severance is not mandated but is common in professional roles. Benchmark based on your years of service and salary level.

Oregon Employment Laws That Affect Your Severance

Understanding these OR-specific protections is the first step to negotiating a better package.

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High-Wage Non-Compete Restriction

High Leverage

Oregon only permits non-competes for employees earning $113,241+ (indexed annually). If you earn less, any non-compete is unenforceable.

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Hiring-Time Agreement Requirement

High Leverage

Non-competes must be agreed to at the time of hire with 2 weeks written notice. Any agreement signed after hiring is void.

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1-Year Maximum Duration

High Leverage

Oregon non-competes are limited to 1 year post-employment. Longer restrictions are unenforceable.

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At-Will Employment Default

Moderate Leverage

Oregon presumes at-will employment. No severance mandate. Severance is negotiable.

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Final Paycheck & Accrued Wages

Moderate Leverage

Employers must pay all accrued wages on the next regular payday. Ensure severance covers all earned compensation.

WARN Act: Oregon vs. Federal

No State WARNFederal WARN
Employer ThresholdN/A100 employees
Notice RequiredN/A60 days

Key insight: Oregon has no state WARN act. Only federal WARN applies if your employer has 100+ employees.

Non-Compete Agreements in Oregon

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Non-Competes Are Heavily Scrutinized

Oregon restricts non-competes to employees earning $113,241+ (2024 threshold, indexed annually). Must be agreed at time of hire with 2 weeks notice. Void if not agreed at hiring. Maximum duration is 1 year post-employment.

Your Oregon Advantage

If you earn under $113,241, any non-compete is unenforceable. This is powerful leverage in negotiation.

Non-competes must be agreed at hiring time with notice. Post-employment agreements are void, giving you freedom if severance includes new restrictions.

Maximum 1-year duration limits the impact on your career mobility.

Red Flags in OR Severance Agreements

If your severance agreement includes any of these, you should not sign without further review.

If you earn $113,241+, non-competes are enforceable for up to 1 year. Negotiate duration and scope carefully.

Do not sign a new non-compete in your severance if it was not agreed at time of hire. It is void under Oregon law.

No state WARN act. Verify federal WARN compliance if you are part of a 100+ employee layoff.

Severance is not mandated. Build your negotiation around your earnings level and non-compete restrictions.

Find Out What Your OR Severance Is Really Worth

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Oregon Severance FAQ

Is a non-compete enforceable in my Oregon severance?
Only if you earn $113,241+ (2024 threshold) and the non-compete was agreed at time of hire with 2 weeks notice. If you earn less or it was signed after hiring, it is void.
What if I earn over the threshold?
Non-competes are enforceable up to 1 year post-employment if agreed at hire with notice. Negotiate for shorter duration and narrow geography/scope.
Is severance required in Oregon?
No. Severance is not mandated. Any offer is negotiable.
Do I have WARN Act protection?
Only federal WARN applies (100+ employees, 60 days notice). Oregon has no state WARN act.
Can my employer enforce a non-compete signed after hiring?
No. Oregon law voids non-competes signed after the hiring date unless they meet strict requirements. Challenge any post-hire agreement.

Disclaimer: SeveranceIQ is an educational technology tool, not a law firm. The information on this page about Oregon employment laws is for general educational purposes only and does not constitute legal advice. Laws change frequently. For advice about your specific situation, consult a licensed Oregon employment attorney. Full disclaimer