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VA HB627

VA HB627
Covenants not to compete; includes health care professionals, clarifies definition, civil penalty.


summary

Introduced
01/13/2026
In Committee
02/23/2026
Crossed Over
02/06/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Covenants not to compete; health care professionals; civil penalty. Adds health care professionals with a salary of less than $500,000 per year 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 physician, nurse, nurse practitioner, physician's assistant, pharmacist, social worker, dietitian, physical or occupational therapist, professional counselor, behavior analyst, assistant behavior analyst, or medical technologist authorized to provide health care services in the Commonwealth. 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.

AI Summary

This bill expands protections against non-compete agreements, which are contracts that prevent an employee from working for a competitor after leaving a job, to include "health care professionals" earning less than $500,000 annually, in addition to existing protections for "low-wage employees" (those earning below the state's average weekly wage or entitled to overtime pay). The bill defines "health care professional" broadly to encompass a wide range of licensed medical practitioners, including physicians, nurses, and therapists. Employers who violate these prohibitions by enforcing or threatening to enforce non-compete agreements against these individuals will face a civil penalty of $10,000 per violation, consistent with current law. The bill also clarifies that certain provisions related to nondisclosure agreements and the sale of a business are not affected, and it allows for repayment of recruitment and training costs for health care professionals employed for less than five years, as well as restrictions on soliciting former clients under specific conditions.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (4)

Last Action

Fiscal Impact Statement from Department of Planning and Budget (HB627) (on 02/24/2026)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/HB627
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB627) https://lis.blob.core.windows.net/files/1178592.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB627/text/HB627S1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB627) https://lis.blob.core.windows.net/files/1144986.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB627/text/HB627E
Labor and Commerce Amendment https://lis.virginia.gov/bill-details/20261/HB627/text/HB627AH1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB627) https://lis.blob.core.windows.net/files/1108669.PDF
Subcommittee #2 Subcommittee Amendment https://lis.virginia.gov/bill-details/20261/HB627/text/HB627AHC2
Labor and Commerce Amendment https://lis.virginia.gov/bill-details/20261/HB627/text/HB627AHC1
BillText https://lis.virginia.gov/bill-details/20261/HB627/text/HB627
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