Do I need a will if I have a trust?

Yes. Even with a living trust, you need a pour-over will to capture any assets that weren't transferred into your trust during your lifetime. Without one, those assets pass through Oregon's intestacy laws rather than according to your wishes.

What is the difference between a will and a living trust?

A will takes effect at death and must go through probate before assets are distributed. A living trust takes effect immediately, avoids probate, and allows for faster, private transfer of assets to your beneficiaries. Trusts also provide better protection for blended families and beneficiaries who are minors or have special needs.

How much does estate planning cost in Oregon?

Track Town Law offers flat-fee estate planning services in Oregon and Idaho. Fees vary based on the complexity of your plan — whether you need a simple will package, a full revocable living trust plan, or a more complex plan involving Medicaid planning or special needs considerations. Consultations are free.

Do I need an LLC for my small business in Oregon?

Most small business owners in Oregon benefit from forming an LLC. It separates your personal assets from business liabilities, can provide tax flexibility, and signals credibility to clients and vendors. The key is not just forming the LLC but setting it up correctly with an operating agreement, a dedicated bank account, and an EIN.

What does Medicaid planning involve?

Medicaid planning involves structuring your assets and income to qualify for Oregon Medicaid long-term care benefits while protecting as much of your estate as possible. This may involve Medicaid Asset Protection Trusts, spousal protection strategies, and coordinating with VA benefits if applicable. Planning works best when started at least five years before care is needed.

Can I work with Track Town Law if I don't live in Eugene?

Yes. Track Town Law is a fully virtual firm serving clients throughout Oregon and Idaho. All meetings are conducted by video or phone, and documents are signed electronically. You never need to come to an office.

What is Oregon's estate tax threshold?

Oregon imposes its own estate tax with a threshold of $1 million — significantly lower than the federal exemption of $15 million. This means many Oregon families who wouldn't owe federal estate tax may still owe Oregon estate tax. Proper planning with trusts and other strategies can reduce or eliminate this exposure.

How do I get started with Track Town Law?

Start with a free consultation. You can book online at tracktownlaw.com/book-now. Consultations are conducted by video or phone and typically last 30 to 45 minutes. There is no obligation and no charge for the initial meeting.

Oregon Non-Compete Agreements After 2022: What Employers Can and Can't Enforce

May 28

Written By Jared Hight

Oregon significantly tightened its non-compete law in 2022 and has continued to restrict it since. Most non-competes signed before the changes took effect — and many signed after — are unenforceable. Here's what Oregon small business owners need to know.

Non-compete agreements have always been harder to enforce in Oregon than in most states. Since 2022, they've become harder still. A series of statutory changes have narrowed the circumstances under which a non-compete can be used, tightened the requirements for validity, and changed the consequence of getting it wrong from a voidable agreement to a void one — meaning it never existed in the first place.

If you're an Oregon small business owner who uses non-compete agreements, or who is considering adding them to your employment contracts, this post is for you. The rules are specific, the thresholds adjust annually, and the penalties for non-compliance are significant.

What Changed in 2022

Oregon's non-compete statute, ORS 653.295, was substantially amended by Senate Bill 169, signed in 2021 and effective for agreements entered into on or after January 1, 2022. The changes tightened several existing requirements and added new ones.

The most significant change was in the consequence of non-compliance. Under prior law, a non-compete that didn't meet statutory requirements was merely voidable — meaning the employee had to take affirmative steps to challenge it, and if they didn't, it might be enforceable anyway. Under the 2022 amendments, a non-compliant agreement is void and unenforceable from the start. There's nothing to enforce and nothing to challenge. It simply doesn't exist as a legal matter.

That's a meaningful shift for Oregon employers. An agreement that would have survived challenge under the old law may be worthless under the new one.

What Oregon Law Currently Requires

For a non-compete agreement entered into on or after January 1, 2022 to be enforceable under ORS 653.295, all of the following must be true:

The employee must earn above the salary threshold. As of 2025, the employee's total annual gross salary and commissions at the time of termination must exceed $116,427. This threshold started at $100,533 in 2022 and adjusts annually for inflation based on the Consumer Price Index for the West Region. It will continue to increase each year — check the current figure before drafting or relying on any non-compete.

The employee must be exempt under Oregon wage and hour law. The employee must qualify as an exempt employee under ORS 653.020(3) — the Oregon equivalent of the FLSA executive, administrative, or professional exemption. Oregon's exemption test is stricter than the federal standard, so federal exempt status alone is not sufficient.

The employer must have a protectable interest. The employee must have access to trade secrets as defined in ORS 646.461, or to competitively sensitive confidential business or professional information that wouldn't otherwise qualify as a trade secret — things like product development plans, marketing strategy, sales plans, or customer information.

The agreement must be provided in advance. For new hires, the non-compete must be provided in writing at least two weeks before the employee's first day of work. For existing employees being asked to sign a new non-compete, it must be provided at the time of a bona fide advancement.

A signed copy must be provided after termination. Within 30 days after the employee's termination, the employer must provide the employee with a signed, written copy of the non-compete agreement. If the employer fails to do this, the agreement is void.

The term cannot exceed 12 months. The maximum enforceable duration of an Oregon non-compete is 12 months from the date of termination. Any portion of the agreement that purports to extend beyond 12 months is automatically void.

The restrictions must be reasonable. Even a technically compliant non-compete can be challenged if the geographic scope or activity restrictions are unreasonable in relation to the employer's legitimate business interests.

All of these requirements must be satisfied. Missing any one of them voids the entire agreement.

The 2025 Healthcare Update

Oregon continued tightening its non-compete law in 2025. Senate Bill 951, effective June 9, 2025, made non-compete agreements void and unenforceable for most licensed healthcare providers. If your business employs physicians, nurses, or other licensed healthcare professionals in Oregon, non-competes are no longer a viable tool for that workforce regardless of salary or other factors.

What About Agreements Signed Before 2022?

Non-compete agreements signed before January 1, 2022 are governed by the prior version of ORS 653.295. Those agreements are not automatically void under the new law — but they were subject to their own set of requirements, and many weren't drafted to meet even those. If you're relying on a pre-2022 non-compete, it's worth having it reviewed against both the law in effect when it was signed and the current landscape.

What Oregon Employers Can Use Instead

Oregon's restrictions on non-competes don't mean you have no tools to protect legitimate business interests. Several alternatives remain available and are generally less difficult to enforce:

Non-solicitation agreements. A non-solicitation agreement restricts a former employee from soliciting your customers or other employees after leaving. These are treated differently from non-competes under Oregon law and don't carry the same strict requirements. As covered in the independent contractor agreements post, well-drafted restrictive covenants in employment and contractor agreements are worth the investment.

Confidentiality and non-disclosure agreements. An NDA protects trade secrets and confidential business information regardless of whether a non-compete is enforceable. Oregon's Uniform Trade Secrets Act provides additional protection for qualifying information.

Bonus restriction agreements. Oregon law specifically recognizes bonus restriction agreements — arrangements where an employee who competes after leaving forfeits unpaid profit sharing or bonus compensation. These have their own requirements but are a distinct and potentially useful tool for certain employees.

The Practical Reality for Oregon Small Business Owners

Most small Oregon businesses don't have employees who meet all of the statutory requirements for a valid non-compete. The salary threshold alone — currently over $116,000 — puts non-competes out of reach for many positions. The exemption requirement and protectable interest requirement add further filters.

If your highest-paid employees are under the threshold, or if they don't have access to genuinely protectable confidential information, a non-compete is void on its face under current Oregon law. Using one anyway doesn't protect you — it just creates the false impression of protection while potentially exposing you to claims that you're attempting to enforce an illegal agreement.

The better investment for most Oregon small businesses is a well-drafted combination of an NDA, a non-solicitation agreement, and a carefully considered employment agreement that covers what happens to confidential information and client relationships when someone leaves. As covered in the service agreements post, the time to address these issues is before someone is hired, not after they've given notice.

Bottom Line

Oregon's non-compete law is among the most restrictive in the country, and it has gotten stricter with each legislative session. Non-competes that were enforceable under older agreements may not be today. And agreements drafted without attention to the current statutory requirements are void — not voidable, not subject to negotiation, but legally nonexistent.

If you use non-competes, have existing agreements reviewed against current law. If you're considering adding them, make sure you understand exactly what you're working with before relying on them.

At Track Town Law, I help Oregon and Idaho small business owners build employment and contractor agreements that actually protect their businesses — within the bounds of what Oregon law allows. Schedule a consultation here.

This post is for general informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. Salary thresholds adjust annually and should be verified before drafting or enforcing any non-compete agreement. Contact a licensed Oregon business attorney to discuss your situation.