Non-compete laws · VA

Virginia physician non-compete law

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

Generally banned for physiciansChecked 2026-10-21

For agreements entered into or renewed on/after July 1, 2026, employers may not enter into, enforce, or threaten to enforce noncompetes with health care professionals, including physicians. Sale-of-business covenants, recruitment-cost repayment, and limited customer non-solicitation provisions remain allowed. (Va. Code § 40.1-28.7:8)

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

  • Health care ban (2026 Acts chs. 1113 and 1114) does not affect agreements entered into or renewed before July 1, 2026
  • Separately, for all employees (2026 Acts ch. 883, SB 170): a noncompete is unenforceable if the employer discharges the employee without cause and without severance or other monetary payment disclosed when the noncompete was signed; applies to agreements entered into, amended or renewed on/after July 1, 2026
  • $10,000 civil penalty per violation; private civil action with fees, filed within 2 years
  • Non-solicitation clauses may not stop a departing professional from telling patients of their continuing practice, new contact information, and right to choose a provider
  • Existing low-wage employee ban (including FLSA non-exempt employees, 2025 c. 585) also applies

Who it covers

Any person licensed, registered, or certified by the Virginia Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work, including physicians (MD/DO), physician assistants, and nurses/nurse practitioners. Dentists and pharmacists (separate boards) are not named. The statute addresses employer-employee covenants.

Exceptions

  • Nondisclosure/trade-secret agreements
  • Sale of business: covenants with a health care professional or their business entity when all or substantially all operating assets with goodwill, or the ownership interest, are sold, if reasonable in scope, duration and area
  • Repayment (full or prorated) of recruitment-related costs (relocation, signing/retention bonuses, practice-establishment remuneration, recruiting/education/training) from a professional employed fewer than five years
  • Customer non-solicitation limited to customers with whom the professional had material contact and to the same or substantially similar services

Effective date

The current rule took effect 2026-07-01.

Notes

Health care ban: HB 627 (ch. 1113) and identical SB 128 (ch. 1114); it does not affect agreements entered into or renewed before July 1, 2026. Dentists and pharmacists are not covered. SB 170 (ch. 883) separately applies to all employees.

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 Virginia 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 Virginia.