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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 957
Sponsored by Senators BROADMAN, MCLANE, REYNOLDS; Senator PATTERSON, Representative BOWMAN
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would ban noncompetes for certain medical providers. The Act would create
exceptions to the ban. (Flesch Readability Score: 68.8).
Voids noncompetition agreements between a licensed health care provider and another person,
with specified exceptions.
A BILL FOR AN ACT
Relating to restrictive covenants in health care provider agreements.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) As used in this section:
(a) “Licensee” means an individual holding a valid license issued by the Oregon Medical
Board.
(b) “Noncompetition agreement” means a written agreement between a licensee and an-
other person under which the licensee agrees that the licensee, either alone or as an em-
ployee, associate or affiliate of a third person, will not compete with the other person in
providing products, processes or services that are similar to the other person’s products,
processes or services for a period of time or within a specified geographic area after termi-
nation of employment or termination of a contract under which the licensee supplied goods
to or performed services for the other person.
(2)(a) Notwithstanding ORS 653.295 (1) and (2), and except as provided in paragraph (b)
of this subsection, a noncompetition agreement between a licensee and another person is
void and unenforceable.
(b) A noncompetition agreement between a licensee and another person is valid and en-
forceable under the terms provided in ORS 653.295 and to the extent that the noncompetition
agreement is between a licensee and a business entity:
(A) For which the licensee provides direct patient care services; and
(B) In which the licensee controls an ownership interest that is equivalent to at least five
percent of the entire ownership interest that exists in the business entity.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4149