Most states follow the employment-at-will doctrine, and employment for an indefinite term may be terminated at will and without cause. Absent a specific contract term to the contrary, this doctrine allows an employee to quit or be terminated without liability on the part of the employer or the employee, with or without cause.

But executive employees often have a written employment contract that provides for a more complex compensation structure—including incentives, bonuses, and severance pay—and limits the circumstances under which the executive may be fired or terminated to those situations in which the employer has cause for termination, as defined in the written employment agreement.

In Oregon, as in most states, the employment-at-will doctrine is the default rule, meaning that either the employer or the employee can terminate the employment relationship at any time, with or without cause, and without incurring legal liability, as long as there is no specific contract stating otherwise and the termination does not violate any laws, such as anti-discrimination statutes. However, executive employees often enter into written employment contracts that detail a more sophisticated compensation package, which may include incentives, bonuses, and severance pay. These contracts typically also restrict the conditions under which the executive can be terminated, usually requiring 'cause' for termination. The definition of 'cause' is generally outlined in the employment agreement, and the contract may provide protections beyond the basic at-will framework. It is important for both employers and executives in Oregon to carefully review and understand the terms of any employment contract before entering into such agreements.