Virginia's HB 627 Bars Noncompetes for Health Care Professionals, Effective July 1, 2026
Virginia's HB 627 Bars Noncompetes for Health Care Professionals, Effective July 1, 2026
Virginia's HB 627, effective July 1, 2026, bars employers from entering, enforcing, or threatening to enforce noncompete agreements with health care professionals licensed by six state boards, though narrow carve-outs remain for recruitment-cost repayment, client non-solicitation, and business-sale transactions under Va. Code § 40.1-28.7:8.
Information last verified on July 4, 2026. This is a developing story; we update it as the record changes.
Jurisdiction scope: This article addresses Virginia's statutory ban on noncompete agreements with health care professionals under HB 627 and companion SB 128 (2026 Regular Session), which amend Va. Code § 40.1-28.7:8 effective July 1, 2026. It does not address Virginia's separate SB 170, a broader rule that bars noncompete enforcement after a no-cause termination without severance for employees generally; see Virginia's SB 170 noncompete severance rule. It also does not address noncompete law outside Virginia.
What Happened
On July 1, 2026, Virginia's HB 627 and its Senate companion, SB 128, took effect, adding health care professionals to the short list of workers with whom Virginia employers may not use noncompete agreements. House Majority Leader Charniele Herring patroned HB 627; Senator Schuyler VanValkenburg patroned SB 128. Both bills amend Va. Code § 40.1-28.7:8, the statute the General Assembly first used in 2020 to bar noncompetes for "low-wage employees." HB 627 was enacted as Chapter 1113 of the 2026 Acts of Assembly. The amendment defines "health care professional" as any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work, and forbids an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with that person. The change reaches only agreements entered into or renewed on or after July 1, 2026; it does not unwind noncompetes signed earlier.
"...any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work." Va. Code § 40.1-28.7:8, as amended by 2026 Va. Acts ch. 1113 (HB 627), defining "health care professional"
What the Law Actually Says
Virginia's noncompete statute, Va. Code § 40.1-28.7:8, already barred covenants not to compete with "low-wage employees" (a category tied to the state's average weekly wage) starting in 2020. HB 627 and SB 128 add a second, separate protected category: health care professionals, defined by reference to six specific licensing boards, the Board of Medicine, Nursing, Counseling, Optometry, Psychology, and Social Work. That list does not include the Board of Dentistry or the Board of Pharmacy, so a dentist or pharmacist licensed only under one of those separate boards falls outside this specific carve-out.
The prohibition is broad: an employer may not enter into, enforce, or threaten to enforce a noncompete with a covered health care professional. The amendment preserves three narrower tools. A sale-of-business exception allows a buyer and seller to negotiate a noncompete for a health care professional in connection with the sale of all or substantially all of a practice's operating assets, a division, or an ownership interest, provided it is reasonable in scope, duration, and geographic area. Employers may still require repayment of recruitment-related costs, including relocation expenses, signing or retention bonuses, and recruiting, education, or training expenses, from a professional who departs after fewer than five years of employment. And employers may still use client (patient) non-solicitation clauses, so long as they are narrowly construed and limited to patients with whom the professional had material contact and to products or services the same as or substantially similar to those the employer provides. The amendment also confirms that a departing professional may tell patients they are practicing elsewhere, inform them of their right to choose a provider, and give them the new practice's contact information.
This is a distinct change from Virginia's SB 170, which also took effect July 1, 2026, and amends the same code section. SB 170 applies to employees generally and makes a noncompete unenforceable if the employer terminates the employee without cause and without severance. HB 627 is a categorical ban tied to professional licensure, not to how the employment relationship ended. A Virginia health care professional may now have two independent statutory arguments against enforcement of a post-July-1, 2026 noncompete, depending on the facts. This article addresses only the health care professional ban; see the related article above for the no-cause-termination rule. Employers should also review their Virginia at-will employment practices, since termination timing and documentation interact with both statutes.
Analysis: Why This Matters
The following is analysis from the Recording Law Editorial Team.
Virginia's health care professional noncompete ban follows a pattern in several states that have singled out licensed clinicians for categorical noncompete restrictions, on the reasoning that noncompetes for doctors, nurses, therapists, and social workers can restrict patients' access to a provider they already know, particularly in rural or underserved areas. By tying the definition to specific licensing boards rather than to job title or employer sector, the General Assembly created a bright-line test: enforceability turns on whether the state licenses, registers, or certifies the person through one of the six named boards, not on their job description.
The three carve-outs signal a targeted restraint on practice mobility rather than a ban on every hiring-related contract term. Recruitment-cost repayment lets an employer recover a quantifiable investment from an employee who leaves quickly, without restraining where that employee can next work. Non-solicitation lets an employer protect existing patient relationships without stopping a departing provider from practicing nearby. The sale-of-business exception preserves noncompetes as a tool in practice acquisitions, where a buyer's price often depends on the seller's enforceable commitment not to immediately compete. Because the ban reaches only agreements entered into or renewed on or after July 1, 2026, its practical effect will build gradually as older agreements expire or are replaced, rather than all at once.
How This Affects You
If you are a Virginia health care professional negotiating a new employment agreement dated on or after July 1, 2026, a provision restraining where you may practice is not enforceable against you under Va. Code § 40.1-28.7:8 if you fall within the statutory definition. A recruitment-cost repayment clause, a narrowly drawn patient non-solicitation clause, or a noncompete tied to a practice sale may still bind you if it meets the statutory conditions above. If you signed a noncompete before July 1, 2026, this change does not by itself void it; enforceability continues to be governed by the law in effect when it was signed or last renewed.
If you are a Virginia employer of health care professionals, agreements executed or renewed on or after July 1, 2026, should not include a general noncompete against a covered professional. Recruitment-cost repayment and patient non-solicitation provisions should track the statutory limits, the five-year employment threshold, material patient contact, and substantially similar services, rather than broader language carried over from older templates. A violation carries a $10,000 civil penalty per violation plus the employee's attorney's fees, costs, and expert witness fees, so reviewing standard agreement templates before renewals go out is a reasonable compliance step. None of this is individualized legal advice; a Virginia-licensed employment lawyer can evaluate a specific agreement.
This is general legal information, not legal advice. It covers Virginia's HB 627/SB 128 noncompete restrictions for health care professionals and reflects sources verified on July 4, 2026. Laws change and this story is developing; consult a lawyer licensed in Virginia about your specific situation.
Sources
- HB 627 (2026 Regular Session), Virginia Legislative Information System
- SB 128, engrossed text (2026 Regular Session), Virginia Legislative Information System
- Code of Virginia § 40.1-28.7:8, Covenants not to compete prohibited; exceptions
- Enrolled HB627ER, 2026 Session, Virginia Legislative Information System
Related articles
- Virginia's SB 170 noncompete severance rule
- Virginia at-will employment laws
- Virginia whistleblower protections
- Virginia medical malpractice laws
Last updated: 2026-07-04. This is a developing story; details verified as of 2026-07-04.
Frequently Asked Questions
Does HB 627 cancel noncompetes that Virginia health care workers already signed before July 1, 2026?
No. HB 627 and SB 128 are not retroactive. They apply only to covenants not to compete entered into or renewed on or after July 1, 2026; agreements signed and not renewed before that date continue to be governed by the law in effect when they were signed.
Who counts as a "health care professional" under Virginia's new law?
Va. Code § 40.1-28.7:8, as amended, defines a health care professional as any person licensed, registered, or certified by Virginia's Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.
Can a Virginia employer still recover recruitment costs from a health care professional who leaves?
Yes. The statute permits repayment provisions for recruitment-related costs, including relocation expenses, signing or retention bonuses, and recruiting, education, or training expenses, when the departing health care professional has been employed for fewer than five years.
Can a Virginia medical or counseling practice still stop a departing provider from soliciting patients?
Yes, if the clause is narrowly drawn. Non-solicitation provisions remain enforceable when limited to patients with whom the professional had material contact and to products or services the same as or substantially similar to those the employer provides.
What is the penalty for violating Virginia's health care noncompete ban?
A court or arbitrator that finds a violation may impose a civil penalty of $10,000 for each violation, and the affected employee is entitled to reasonable costs, expert witness fees, and attorney's fees.
How is HB 627 different from Virginia's SB 170 noncompete law?
SB 170, also effective July 1, 2026, applies to employees generally and bars noncompete enforcement after a no-cause termination without severance. HB 627 is a separate, category-based ban limited to health care professionals licensed under the six named boards, regardless of how the employment ends.
Does the health care professional noncompete ban cover dentists or pharmacists in Virginia?
Only if they are also licensed, registered, or certified by one of the six named boards. The Board of Dentistry and Board of Pharmacy are not among the boards listed in Va. Code § 40.1-28.7:8, so a dentist or pharmacist licensed solely through those boards falls outside this specific provision.
Are noncompetes tied to the sale of a medical or counseling practice still allowed in Virginia?
Yes. The statute permits a buyer and seller to negotiate a noncompete for a health care professional in connection with the sale of all or substantially all of a practice's operating assets, a division, or an ownership interest, so long as it is reasonable in scope, duration, and geographic area.
Sources and References
- HB 627 (2026 Regular Session), Virginia Legislative Information System, enacted as Chapter 1113(lis.virginia.gov).gov
- SB 128, engrossed text (2026 Regular Session), Virginia Legislative Information System(lis.virginia.gov).gov
- Code of Virginia Section 40.1-28.7:8, Covenants not to compete prohibited; exceptions(law.lis.virginia.gov).gov
- Enrolled HB627ER, 2026 Session, Virginia Legislative Information System(lis.blob.core.windows.net).gov