Virginia legislation · 2026 Regular Session
Virginia HB627: An Act to amend and reenact § 40.1-28.7:8 of the Code of Virginia, relating to covenants not to compete; health care professionals; civil penalty.
Status: Chaptered, May 14, 2026
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.
What the bill says
An Act to amend and reenact § 40.1-28.7:8 of the Code of Virginia, relating to covenants not to compete; health care professionals; civil penalty. [H 627] Approved May 14, 2026 1. That § 40.1-28.7:8 of the Code of Virginia is amended and reenacted as exceptions; civil penalty. A. As used in this section: "Covenant not to compete" means a covenant or agreement, including a provision of a contract of employment, between an employer and employee that restrains, prohibits, or otherwise restricts an individual's ability, following the termination of the individual's employment, to compete with his.
From the enrolled text, May 14, 2026:
An Act to amend and reenact § 40.1-28.7:8 of the Code of Virginia, relating to covenants not to compete; health care professionals; civil penalty. [H 627] Approved May 14, 2026 1. That § 40.1-28.7:8 of the Code of Virginia is amended and reenacted as exceptions; civil penalty. A. As used in this section: "Covenant not to compete" means a covenant or agreement, including a provision of a contract of employment, between an employer and employee that restrains, prohibits, or otherwise restricts an individual's ability, following the termination of the individual's employment, to compete with his former employer. A "covenant not to compete" shall not restrict an employee from providing a service to a customer or client of the employer if the employee does not initiate contact with or solicit the customer or client. "Health care professional" means any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work. "Low-wage employee" means an employee (i) whose average weekly earnings, calculated by dividing the employee's earnings during the period of 52 weeks immediately preceding the date of termination of employment by 52, or if an employee worked fewer than 52 weeks, by the number of weeks that the employee was actually paid during the 52-week period, are less than the average weekly wage of the …