Oregon physician non-compete law
Physician non-competes are generally not enforceable in Oregon.
If your contract is governed by Oregon law, a physician non-compete is generally void — the state does not let an employer restrict where you practice after you leave. The clause may still appear in your contract; that alone does not make it enforceable. Confirm the restriction is tied to employment (not the sale of a practice or an ownership stake), and don't let an unenforceable clause talk you out of a move it cannot actually block.
- Posture
- Banned for physicians (SB 951, 2025)
- Last reviewed
- 2026-06-10
- Radius that tends to stand
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- Term that tends to stand
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Governing law: Or. SB 951 (2025), as amended by HB 3410 (2025), Oregon Laws 2025; noncompete ban codified in Sec. 7 (operating "Notwithstanding ORS 653.295"); general noncompete statute ORS 653.295 governs the narrow permitted exceptions
These are the general rules for Oregon. Your contract's exact radius, term, and buyout decide how it actually lands. See how your own clause compares — free.
Check your contract — free →A case that shaped this
Oregon Psychiatric Partners, LLP v. Henry (2022, Or. Ct. App. (316 Or. App. 726, 504 P.3d 1223)) — Pre-SB 951: court applied ORS 653.295 to a psychiatric-mental-health NURSE PRACTITIONER's 2-year/50-mile patient-nonsolicit covenant; under ORS 653.295(4)(b) the employer bore the burden of proving enforceability once the employee acted to void it, and the trial court did not err in finding certain patients were not 'customers' under the nonsolicit exception. Verified real and accurately described; note it involved an NP, not a physician, but illustrates Oregon's narrow pre-2025 enforcement.
The detailed picture
Oregon SB 951 (signed June 9, 2025; noncompete ban effective immediately via emergency clause), as amended by HB 3410 (signed July 24, 2025), makes a "noncompetition agreement that restricts the practice of medicine or the practice of nursing" with a "medical licensee" — Oregon-licensed physicians (ORS 677.110), nurse practitioners (ORS 678.375), physician associates/PAs (ORS 677.512), and naturopaths (ORS 685.100) — void and unenforceable. The bar applies retroactively to agreements entered into before, on, or after the effective date. Narrow exceptions: the licensee holds a >=1.5% ownership/membership interest (lowered from 10%); the licensee does not engage directly in providing medical/clinical care; or a professional medical entity documents a "recruitment investment" of >=20% of annual salary (then capped at 5 years if in a health professional shortage area / 3 years otherwise). Before SB 951, Oregon physician non-competes were enforceable under general ORS 653.295 (12-month max term, ~$116K salary threshold), so "banned" is correct only as of mid-2025 forward.
Common questions
Are physician non-competes enforceable in Oregon?
Physician non-competes are generally not enforceable in Oregon. Governing law: Or. SB 951 (2025), as amended by HB 3410 (2025), Oregon Laws 2025; noncompete ban codified in Sec. 7 (operating "Notwithstanding ORS 653.295"); general noncompete statute ORS 653.295 governs the narrow permitted exceptions.
My Oregon contract still has a non-compete — does that matter?
A clause can appear in a contract without being enforceable. Under Oregon law a physician employment non-compete is generally void, so confirm the restriction is not tied to a practice sale or ownership interest, and check your own contract's exact wording.
Other states
General legal information, not legal advice. Non-compete enforceability turns on the exact wording of your contract and your circumstances; this page describes the state's general posture as last reviewed 2026-06-10.