Non-compete laws · VT

Vermont physician non-compete law

As of October 21, 2026, Vermont law generally makes non-compete agreements void or unenforceable for physicians, with exceptions.

Generally banned for physiciansChecked 2026-10-21

Voids any provision restricting where or for how long a licensed health care provider, including a physician, may practice after leaving, in contracts entered into on or after July 1, 2026. Also voids limits on telling patients about a move. (21 V.S.A. § 495q)

Changed recently. The current rule took effect 2026-07-01. Pages and guides written before then may describe the old rule.

Limits in the law

  • Applies to contracts and agreements entered into on or after July 1, 2026 (21 V.S.A. § 495q(f))
  • Also void: limits on notifying patients of the provider's new practice, non-disparagement clauses, and out-of-state litigation requirements
  • Retaliation against a provider for asserting these rights is prohibited

Who it covers

Any person licensed, certified or authorized to provide professional health care in Vermont, including physicians.

Exceptions

  • Territorial limits tied to a third-party company's nonclinical business support services (21 V.S.A. § 495q(c))
  • Contracts entered into before July 1, 2026

Effective date

The current rule took effect 2026-07-01.

Notes

Act 177 (S.313) was signed June 18, 2026, the same day the governor vetoed S.230 over an unrelated union-access section; the non-compete text moved to S.313. An earlier version of this entry recorded only the S.230 veto and coded Vermont as having no physician-specific rule; corrected 2026-10-21 after reading the enacted text.

Bills that have not become law

Non-compete bills from the 2025 and 2026 sessions that had not become law as of 2026-10-21, furthest along first. A bill that died has to be filed again to move in 2027. The 2027 session starts 2027-01-06 and ends no fixed date (usually May).

  • S.230 (2025–2026) · Health care workers

    Fair employment practices bill; House added new 21 V.S.A. 495q voiding health care provider noncompetes

    Vetoed · Superseded by a later law. Passed Senate 2026-03-12 (without health-care section); House added it, passed 2026-04-30; final concurrence 2026-05-21; vetoed 2026-06-18; no override

  • H.583 (2025–2026) · Health care workers

    Corporate-practice/private-equity bill whose House version voided noncompetes for health care licensees

    Passed one chamber · Superseded by a later law. Passed House 2026-03-20 with noncompete sections; Senate amendment removed them; enacted 2026-06-15 as Act 133 without noncompete provisions

  • H.205 (2025–2026) · All workers

    Would prohibit employee and franchisee noncompete agreements

    Committee action · Died. Reported favorably by House Commerce 2026-02-24, third reading ordered, repeatedly postponed; recommitted to committee 2026-03-13

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?
Check a contract against Vermont lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Vermont.