(HB627) GOVERNOR'S RECOMMENDATION 1.
HB627
Health Care Professionals Protection from Non-Compete Agreements
In one sentence
This act adds health care professionals to a list of employees who cannot have non-compete agreements with their employers and sets penalties for violating this rule.
What it does
- Adds health care professionals as a group that cannot enter into, enforce, or threaten to enforce non-compete agreements with their employers.
- Defines 'health care professional' as someone licensed, registered, or certified by specific Virginia boards like Medicine, Nursing, Counseling, Optometry, Psychology, and Social Work.
- Sets a civil penalty of $10,000 for each violation if an employer breaks the rule against non-compete agreements with health care professionals.
Who it affects
- Health care professionals who work under employment contracts.
- Employers of health care professionals.
Limits and unknowns
- The bill does not specify the exact date it will take effect.
- It is unclear how this law will be enforced and monitored by regulatory bodies.
Plain language
Terms to know
- Covenant not to compete
- An agreement that stops an employee from working for a competitor after leaving their job.
- Health care professional
- A person licensed, registered, or certified by specific Virginia boards in health-related fields.
Official record
Sources
Official 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.
Official activity
Bill history
- Approved by Governor-Chapter 1113 (effective 7/1/2026)Governor
- Acts of Assembly Chapter text (CHAP1113)Governor
- Governor's recommendation adoptedGovernor
- Signed by SpeakerHouse
- Signed by PresidentSenate
- Communicated to GovernorHouse
- Governor's Action Deadline 11:59 p.m., May 23, 2026Governor
- ReenrolledHouse
- Reenrolled bill text (HB627ER2)House
- Governor's amendment no. 1 agreed to (96-Y 3-N 0-A)House
- Governor's amendment no. 2 passed byHouse
- Senate concurred in Governor's recommendation (39-Y 0-N 0-A)Senate
- Governor's recommendation received by HouseGovernor
- Fiscal Impact Statement from Department of Planning and Budget (HB627)House
- Enrolled Bill communicated to Governor on March 31, 2026House
- Governor's Action Deadline 11:59 p.m., April 13, 2026Governor
- Enrolled Bill communicated to Governor on March 31, 2026House
- Governor's Action Deadline 11:59 p.m., April 13, 2026Governor
- Signed by SpeakerHouse
- Enrolled Bill communicated to Governor on March 31, 2026House
Changes
Amendments
4 stored
OFFERED FOR CONSIDERATION 1/29/2026 HB 627 SUBCOMMITTEE 1.
1/30/2026 HB 627 SUBCOMMITTEE 1.
2/03/2026 HB 627 LABOR AND COMMERCE 1.