The 14-Day Notice Rule for Non-Compete Agreements in Oregon
In Oregon, an employer must provide a written non-compete agreement at least two weeks before your first day of work. If they miss this 14-day window and you are not receiving a bona fide advancement, the non-compete is legally void and unenforceable.
The Strict 14-Day Notice Requirement in Oregon
Oregon law is highly protective of prospective employees, ensuring they have ample time to review restrictive covenants before uprooting their lives or turning down other job offers. Under Or. Rev. Stat. § 653.295, employers are required to inform a new hire in a written employment offer at least 14 days before their first day of work that a non-compete agreement is required as a condition of employment. Failure to adhere to this strict timeline renders the agreement entirely void.
Whether you are taking a job in Portland, Salem, or Medford, you must be aware of your rights regarding when and how these contracts are presented. If you were surprised by a non-compete on your first day, you can search our directory to hire a local lawyer who can help you navigate this issue.
Step-by-Step Breakdown of the Notice Rules
Understanding the procedural rules around the 14-day notice can save you from being unfairly restricted when you decide to change jobs. The courts, including the Deschutes County Circuit Court, Bend and the Marion County Circuit Court, Salem, strictly interpret these deadlines.
Step 1: The 14-Day Written Notice Requirement
To be valid, the non-compete must be explicitly mentioned in a written employment offer received by the employee at least two weeks before their start date. It is not enough for an employer to verbally mention that a non-compete will be required. The actual terms or a clear written statement that a non-compete is a condition of employment must be delivered in advance. If you receive the contract on day one of orientation, it violates the statute.
Step 2: The Bona Fide Advancement Exception
There is one major exception to the 14-day rule for new hires: existing employees. An employer can require a current employee to sign a non-compete if it is entered into upon a bona fide advancement. This means a genuine promotion involving a meaningful increase in pay and responsibilities. Simply changing your job title or giving a standard annual cost-of-living raise does not qualify as a bona fide advancement under Oregon law. If your employer tries to force a non-compete without a real promotion, the agreement is invalid.
Step 3: What Happens If an Employer Misses the Deadline
If an employer fails to provide the 14-day notice and there is no bona fide advancement, the non-competition agreement is strictly void. Under previous versions of the law, such agreements were voidable, meaning the employee had to actively challenge them. However, for agreements entered into on or after January 1, 2022, they are void from inception. You are not bound by its terms, and courts will refuse to enforce it.
Step 4: How to Fight Retroactive Non-Compete Clauses
If an employer threatens to enforce an invalid retroactive non-compete, do not panic. First, secure a copy of your initial offer letter and any emails detailing your start date. This creates a paper trail proving the 14-day notice was not met. Second, consult with an employment attorney who can issue a formal rejection letter citing Or. Rev. Stat. § 653.295. This often stops employers from pursuing frivolous litigation at the Clackamas County Circuit Court, Oregon City. The precedent is clear, as seen in cases like IKON Office Solutions, Inc. v. American Office Products, Inc., 178 F. Supp. 2d 1154 (D. Or. 2001), where courts scrutinize the exact timing and nature of employment conditions.
How Much Does it Cost to Defend Your Rights?
If you need to defend yourself against an invalid non-compete based on notice violations, costs in Oregon typically include:
- Legal Consultation: $200 to $400 for an attorney to review the timeline of your hiring and the contract.
- Cease and Desist Response: $500 to $1,500 for a lawyer to draft a formal letter outlining the statutory violations.
- Court Fees: If an employer wrongly files for an injunction, responding in a standard Circuit Court requires a filing fee of approximately $281.
| New Hire (No 14-Day Notice) | Void |
| Existing Employee (Bona Fide Promotion) | Valid (if other conditions met) |
| Existing Employee (Title Change Only) | Void |
How Long Does the Process Take?
Resolving a 14-day notice dispute is often much faster than a standard trade secret case. Because the deadline is a strict, binary factual question (did they provide it 14 days prior or not?), a lawyer's letter is frequently enough to resolve the matter within 1 to 2 weeks. If the employer files for a temporary restraining order, a judge will typically rule on the likelihood of success within 14 to 30 days.
Frequently Asked Questions (FAQ)
What counts as the first day of employment under the statute?
The first day of employment is generally considered the first day you begin performing work for pay, including mandatory orientation or training sessions.
Can I waive the 14-day notice period?
No. The 14-day notice is a statutory requirement designed to protect employees, and you cannot legally waive your right to this advance notice under Oregon law.
Does the 14-day rule apply to confidentiality agreements?
No. Standard confidentiality agreements and non-disclosure agreements (NDAs) that only protect trade secrets without restricting where you can work do not require the 14-day notice.
What if the offer letter mentions a non-compete but doesn't include the full contract?
Oregon law requires the employer to inform you in a written offer that a non-compete is a condition of employment. While providing the full contract is best practice, a clear written notice that it will be required generally satisfies the initial 14-day notification rule.
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