VirginiaHB6272026 Regular SessionHouseWALLET

Covenants not to compete; includes health care professionals, civil penalty.

Sponsored By: Charniele L. Herring (Democratic)

Signed by Governor

Summary

Covenants not to compete; health care professionals; civil penalty. Adds health care professionals as a category of employee with or upon whom no employer shall enter into, enforce, or threaten to enforce a covenant not to compete. The bill defines "health care professional" as any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work. The bill provides that any employer that violates the prohibition against covenants not to compete with a health care professional is subject to the civil penalty in current law of $10,000 for each violation. This bill is identical to SB 128.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Departing health professionals face repayment terms

Health professionals employed for fewer than five years can face repayment duties under an enforceable agreement. Employers can require repayment of all or a prorated share of covered costs. These include recruiting, moving, education, and training expenses, plus signing or retention bonuses. Other payments used to encourage relocation or setting up a practice also qualify. The law sets no dollar amount and does not require employers to impose repayment terms.

Noncompete protections for covered Virginia workers

Virginia employers cannot make, enforce, or threaten to enforce post-job noncompetes against covered health professionals or low-wage workers. Covered professionals hold a license, registration, or certification from Virginia’s Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work boards. Low-wage coverage includes workers entitled to overtime for working over 40 hours in any workweek. It also covers employees whose average weekly pay falls below Virginia’s average weekly wage. That calculation uses the 52 weeks before termination, dividing earnings by 52—or by actual weeks paid if fewer. Coverage includes interns, students, apprentices, and trainees employed to gain work or educational experience. Independent contractors qualify when their hourly pay is below Virginia’s median hourly wage for all occupations, reported by the U.S. Bureau of Labor Statistics for the prior year. Workers paid wholly or mostly through sales commissions, incentives, or bonuses do not qualify through low-wage status, but health-professional coverage can still apply. A noncompete cannot bar serving customers who the worker did not contact first or solicit. Covered health professionals can sue to void an agreement and seek other appropriate relief, without employer retaliation. They have two years from the latest event: signing, learning of the agreement, job termination, or an employer’s enforcement step. Employers face a $10,000 penalty for each violation determined by the Commissioner; the money goes to Virginia’s general fund, not workers.

Health professionals face customer outreach limits

Employers can use enforceable agreements to limit departing health professionals from seeking business from customers they had substantial contact with. This includes prospective customers the employer actively sought. The agreement must state how long the limit lasts after departure. It applies only to products or services the same as, or substantially similar to, the employer’s. The restriction cannot block messages to previously treated or consulted patients about the professional’s continuing practice, contact details, or patient choice.

Health practice sales allow limited noncompetes

A health professional selling a business can agree with the buyer to a noncompete or similar restriction. The sale must cover all or substantially all operating assets and goodwill of the business, division, or subsidiary. A sale of the relevant ownership interest also qualifies. The restriction must be reasonable in the activities it covers, how long it lasts, and its geographic area.

Sponsors & Cosponsors

Sponsor

  • Charniele L. Herring

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 456 • No: 14

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 39 • No: 0

House vote • 4/22/2026

Governor's amendment no. 1 agreed to

Yes: 96 • No: 3

House vote • 3/11/2026

Senate substitute agreed to by House

Yes: 95 • No: 2

Senate vote • 3/9/2026

Passed Senate with substitute Block Vote

Yes: 40 • No: 0

Senate vote • 3/9/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/5/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 39 • No: 0

Senate vote • 3/5/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/4/2026

Reported from Finance and Appropriations

Yes: 14 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 15 • No: 0

House vote • 2/9/2026

Read third time and passed House

Yes: 93 • No: 5

House vote • 2/3/2026

Reported from Labor and Commerce with amendment(s)

Yes: 20 • No: 2

House vote • 1/29/2026

Subcommittee recommends reporting with amendment(s)

Yes: 5 • No: 2

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP1113)

    5/14/2026Governor
  2. Approved by Governor-Chapter 1113 (effective 7/1/2026)

    5/14/2026Governor
  3. Senate concurred in Governor's recommendation (39-Y 0-N 0-A)

    4/22/2026Senate
  4. Governor's amendment no. 2 passed by

    4/22/2026House
  5. Governor's amendment no. 1 agreed to (96-Y 3-N 0-A)

    4/22/2026House
  6. Reenrolled bill text (HB627ER2)

    4/22/2026House
  7. Reenrolled

    4/22/2026House
  8. Governor's Action Deadline 11:59 p.m., May 23, 2026

    4/22/2026Governor
  9. Communicated to Governor

    4/22/2026House
  10. Signed by President

    4/22/2026Senate
  11. Signed by Speaker

    4/22/2026House
  12. Governor's recommendation adopted

    4/22/2026Governor
  13. Governor's recommendation received by House

    4/11/2026Governor
  14. Fiscal Impact Statement from Department of Planning and Budget (HB627)

    4/2/2026House
  15. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  16. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  17. Signed by Speaker

    3/31/2026House
  18. Bill text as passed House and Senate (HB627ER)

    3/30/2026House
  19. Enrolled

    3/30/2026House
  20. Signed by President

    3/30/2026Senate
  21. Senate substitute agreed to by House (95-Y 2-N 0-A)

    3/11/2026House
  22. Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

    3/9/2026Senate
  23. Commerce and Labor Substitute agreed to

    3/9/2026Senate
  24. Engrossed by Senate - committee substitute

    3/9/2026Senate
  25. Read third time

    3/9/2026Senate

Bill Text

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