State & Local Legislation
Virginia Bans Healthcare Non-compete Clauses
March 18, 2026
Virginia Senate Bill No. 170, pending approval by Governor Spanberger, prohibits enforcement of non-compete clauses for healthcare professionals licensed, registered, or certified by state regulatory boards unless terminated for cause or provided severance. This legislative change directly impacts healthcare employment contracts across Virginia, potentially altering recruitment and retention strategies for healthcare providers, especially in primary care and underserved communities.
- Why this matters: Healthcare organizations and contractors operating in Virginia must revise employment agreements to comply with the new restrictions on non-compete clauses.
- This change may increase workforce mobility and competition for healthcare talent, affecting contract negotiations and staffing plans.
- Procurement professionals should anticipate shifts in vendor and staffing contracts as healthcare providers adjust to the new legal environment.
- Organizations involved in healthcare recruitment and retention should evaluate strategies to maintain workforce stability amid reduced contractual restrictions.
Employers could no longer enforce non-compete clauses with healthcare professionals licensed, registered or certified by state regulatory boards.
— Virginia General Assembly
Supporters contend it will help keep clinicians in communities facing shortages, particularly primary care providers.
— Supporters of the legislation
Opponents include larger healthcare systems concerned about protecting investments in recruiting and training clinicians.
— Opponents of the legislation
Agencies
Virginia General Assembly, Virginia Governor's Office, State Regulatory Boards