Oregon has allowed employers to put noncompete clauses in employment contracts. But it is about to change. A new federal rule will void almost all noncompetes.

Noncompete agreements are basically when there is a written agreement between an employer and employee where the employee agrees not to compete with the employer, as the state says, “in providing products, processes or services that are similar to those of the employer for a specified period of time within a specific geographic region.”

Great for the employer. Not so great for the employee. It makes it hard to leave a job knowing it would mean uprooting the family and moving somewhere else.

Oregon did put in place minimum salary requirements for noncompetes. It was $113,241 for 2024, so not a journalist’s salary.

The new federal rule bans all new noncompetes. Existing noncompetes become unenforceable. The expected effective date is Sept. 4. Noncompetes are still allowed for senior executives — presidents, CEOs or someone else making policy decisions for the entire company.

For most employees, though, the era of the noncompetes is dead, tilting the employer/employee balance less in the employer’s favor.

An Oregon legislative committee is set to review the changes next week. More about that here: tinyurl.com/ORnoncompete.