Subcommittee narrows ban on health-care noncompetes, advances bill after split testimony

Delegate Mark Herring (patron) said HB627 would prohibit employers from enforcing noncompete agreements on a defined set of health-care professionals and described the bill as a limited successor to prior legislation intended to preserve access to care and the mobility of clinicians.

An adopted amendment narrowed the definition of covered professionals to those licensed by specified boards and added an income threshold: the prohibition would apply to professionals earning below $500,000 in salary. Herring said the change responded to concerns raised in committee leadership conversations.

Supporters including the Virginia Nurses Association, nurse practitioners, physician assistants and specialty societies argued noncompetes reduce access to care—particularly in rural communities—and can chill patient safety reporting. The Virginia Hospital and Healthcare Association, UVA Health, VCU Health System and other health systems urged caution, saying narrowly targeted noncompetes are sometimes paired with recruitment incentives and help retain specialists.

Members debated the effect of the $500,000 threshold, what counts toward that total (mover/inducement payments were discussed and the patron said the threshold applies to salary only), and next steps. The subcommittee adopted the amendments and reported the bill with amendments by a 5-2 vote.

HB627 moves next to Appropriations.