Non-compete laws · OR

Oregon physician non-compete law

As of October 21, 2026, Oregon law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.

Generally banned for physiciansChecked 2026-10-21

Since June 9, 2025, non-competes restricting the practice of medicine or nursing are generally void between physicians, PAs, NPs or naturopaths and any person, MSO or hospital, including pre-existing agreements. Narrow exceptions: owners of 1.5%+, documented recruitment investment (3-5 year cap), non-clinical roles. (ORS 653.295, 653.297, 653.298 (2025 edition))

Changed recently. The current rule took effect 2025-06-09. Pages and guides written before then may describe the old rule.

Limits in the law

  • Covenants that fit an exception remain subject to ORS 653.295: a 12-month maximum term, advance written notice, a protectable interest, and an earnings threshold ($119,541 for 2026 per BOLI) unless the employer pays the greater of 50% of salary or 50% of the threshold during the restriction
  • Recruitment-investment exception: a professional medical entity must document costs equal to 20% or more of the licensee's annual salary (recruiting, sign-on/relocation bonus, training, support staff/technology, similar items); agreement term may not exceed 3 years after hire, or 5 years after hire if the licensee provides direct care in a federally designated health professional shortage area county.
  • Nondisclosure and nondisparagement agreements between a medical licensee and an MSO or employing hospital/hospital-affiliated clinic are generally void (ORS 653.297(3)); retaliation is barred (ORS 653.298).

Who it covers

'Medical licensees': physicians (ORS 677.110), physician associates (ORS 677.512), nurse practitioners (ORS 678.375) and naturopathic physicians (ORS 685.100), for agreements restricting the practice of medicine or nursing with any person (ORS 442.015), management services organization, hospital or hospital-affiliated clinic. Other workers: ORS 653.295.

Exceptions

  • Licensee is a shareholder/member owning 1.5% or more of the ownership or membership interest of the other party (ORS 653.297(2)(b)(A))
  • Agreement with a professional medical entity that documents its recruitment investment, within the 3-year (or 5-year shortage-area) term limit (ORS 653.297(2)(b)(B))
  • Licensee does not engage directly in providing medical services, health care services or clinical care (ORS 653.297(2)(b)(C))

Effective date

The current rule took effect 2025-06-09.

Notes

HB 3410 (2025) amended SB 951: it lowered the ownership exception from 10% to 1.5%, replaced the 'protectable interest' exception with a documented recruitment investment, and applied the rules to agreements entered before, on or after June 9, 2025. The 2026 and 2029 dates in SB 951 concern MSO ownership rules, not noncompetes.

Bills that have not become law

Non-compete bills from the 2025 and 2026 sessions that had not become law as of 2026-10-21, furthest along first. A bill that died has to be filed again to move in 2027. The 2027 session starts 2027-01-11 and ends 160 calendar days (about late June 2027).

  • SB 957 (2025) · Health care workers

    Would void noncompetes between any licensed health care provider and another person, with exceptions

    Passed one chamber · Died. Passed Senate 2025-04-01 (22-4); House referred to Rules 2025-05-27; in committee upon adjournment 2025-06-27

  • HB 3227 (2025) · Physicians

    Would void noncompete, nondisclosure, nondisparagement and nonsolicitation agreements between certain business entities and medical professionals

    Committee action · Died. Referred to House Behavioral Health and Health Care 2025-01-17; public hearing 2025-03-27; in committee upon adjournment 2025-06-27 (policy enacted instead via SB 951)

  • SB 468 (2025) · Health care workers

    Would void noncompetition agreements with employees who are health professionals

    Committee action · Died. Referred to Senate Judiciary 2025-01-17; public hearing 2025-02-12; in committee upon adjournment 2025-06-27

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against Oregon lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Oregon.