/ 3 min read

Virginia legislature seeks to curb non-competes for health care workers

As Virginia’s 2026 legislative session unfolds, lawmakers have moved quickly to advance legislation that would prohibit, or significantly limit, the use of employment non-compete restrictions in the health care sector.

Targeted overhaul of non-competes in health care

As introduced, a pair of companion bills—HB 627, sponsored by House Majority Leader Charniele Herring, and SB 128, sponsored by Senator Schuyler VanValkenburg—seek to prohibit the use of non-competes for health care professionals. Specifically, the bills would amend Virginia’s existing non-compete ban for low-wage employees in Va. Code § 40.1-28.7:8 to include a new provision banning non-competes for health care professionals. As introduced, SB128 defined “health care professionals” to include all individuals licensed, registered, or certified by the Boards of Medicine, Nursing, Optometry, Psychology, or Social Work. In contrast, HB 627 sought to cover any physician, nurse, nurse practitioner, physician' assistant, pharmacist, social worker, dietitian, physical or occupational therapist, professional counselor, behavior analyst, assistant behavior analyst, or medical technologist. Under both pieces of legislation, the definition of “health care professional” is particularly broad and will likely cover not only non-competes with employees but also may extend to non-competes for health care professionals who are also owners of a practice.

The House’s $500,000 compensation threshold

In a pivotal development, on January 29, 2026, the Virginia House Labor and Commerce Subcommittee #2 approved HB 627 with a crucial amendment that narrows the ban to apply only to health care professionals earning less than $500,000 per year. The subcommittee also aligned the definition of “health care professional” with that in SB 128. This change would allow employers, like physician-owned medical groups, to continue using non-competes for those who earn above that threshold. Hospital-based medical groups, such as radiologists, favor retention of such intra-group non-competes because they enable such practices to operate on a stronger footing in negotiations for exclusive service contracts with hospitals. On February 2, 2026, the Senate Labor and Commerce Committee unanimously advanced SB 128. As approved by the Committee, the bill does not include the House’s proposed salary threshold, but it adds new exceptions related to the sale of a business. The bill also expressly preserves employers’ ability to require mandatory reimbursement of recruitment and training costs. How the two pieces of legislation will be reconciled if both are passed, remains an open question and a key point to watch as the bills advance. 

What to watch for next

These measures are still moving through the committee process, and further amendments and drafting changes are likely. The most consequential open questions include whether the Senate will mirror the House’s $500,000 compensation threshold and whether any additional carve-outs will emerge. Health care employers should closely monitor the bills’ progress to understand when and how compliance timelines might apply.