Virginia Expands Its Ban on Non-Compete Agreements for Health Care Professionals

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Patricia Tsipras

June 16, 2026

Effective for new or renewed agreements entered into on or after July 1, 2026, Virginia Senate Bill 128 (SB 128) significantly broadens the state’s existing restrictions on non-compete agreements, extending the prohibition to include all health care professionals, defined as “any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.”  Employers in the health care sector should act swiftly to ensure compliance while protecting their legitimate business interests.

Understanding SB 128 and Its Impact on Employers

SB 128 builds on Virginia’s prior ban on non-compete agreements for low-wage employees by now prohibiting such agreements for health care professionals.  A “covenant not to compete” is defined as an agreement that restricts an employee from providing services to a customer or client of the employer after the employment relationship ends.  Under the new law, employers are barred from entering into, enforcing, or threatening to enforce non-compete agreements with health care professionals.

What Employers Still Can Do

While SB 128 imposes significant restrictions, it does not leave employers without tools to safeguard their business interests.  Employers still can utilize the following strategies:

• Non-Disclosure Agreements (NDAs):  Employers may continue to use NDAs to protect confidential information, trade secrets, and proprietary data.
• Non-Solicitation Clauses:  Employers can include provisions in employment agreements that prevent former employees from soliciting the company’s clients, customers, or employees.
• Sale of Business Agreements:  Non-compete agreements tied to the sale of a business remain enforceable.  For example, if a health care professional sells their practice, they may agree not to compete with the buyer for a specified period and within a defined geographic area.
• Recruitment Cost Repayment Provisions:  Employers may include provisions requiring employees to repay recruitment-related costs, such as relocation expenses or signing bonuses, if they leave the company within five years of hire.  These provisions are permissible under SB 128 and can help employers recoup investments in employee recruitment and retention.

Note, however, that the law does not prevent departing health care professionals from telling patients that they will continue practicing elsewhere, informing patients of their right to choose a provider, or providing contact information for their new practice.

Risks of Non-Compliance

Employers who fail to comply with SB 128 face significant risks.  Violations can result in civil penalties, court-ordered voiding of non-compete agreements, and potential liability for retaliatory actions against employees who assert their rights.  Additionally, the reputational damage associated with non-compliance can harm an employer’s standing in the competitive health care market.

Call to Action: Protect Your Business Interests

The enactment of SB 128 underscores the importance of proactive legal compliance and strategic planning.  Employers in the health care sector must review their existing employment agreements and policies to ensure compliance with the new law.  At the same time, they should explore alternative strategies, such as NDAs and non-solicitation clauses, to protect their business interests.

The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania  This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Virginia, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist.  Always consult an attorney with specific legal issues.