If you own a dental practice in Virginia, two new non-compete laws took effect on July 1, 2026, and they may affect your employment agreements.
What’s unusual is that dentists occupy an unexpected—and, for now, favorable—position under the new rules.
Virginia has joined the growing list of states sharply restricting non-compete agreements, but one of the new laws specifically exempts dentists while restricting non-competes for many other healthcare professionals. At the same time, a second law applies to all employers, including dental practices, and changes when non-compete agreements can be enforced.
Dentists Are Exempt from Virginia’s Healthcare Non-Compete Ban
The first law (HB627/SB128) prohibits non-compete agreements for healthcare professionals licensed by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology, and Social Work.
However, professionals licensed by the Virginia Board of Dentistry are not included in the ban.
As a result, dental practice owners may continue using non-compete provisions with employed dentists, provided those restrictions remain reasonable in duration, geographic scope, and the activities they restrict.
That said, this exemption may not be permanent. As more states revisit non-compete laws for healthcare professionals, it’s possible Virginia’s legislature could eventually extend the ban to dentists as well.
A Second Law Applies to All Virginia Employers
The second law, SB170, affects all employers equally.
Under this statute, a non-compete agreement becomes unenforceable if an employee is terminated without cause and does not receive severance benefits or other monetary compensation that was disclosed when the agreement was signed.
The statute does not specify how much severance is required, so it’s generally safer to err on the side of providing more rather than less.
SB170 does not apply to:
- Employees who voluntarily resign
- Employees terminated for cause
It also applies only to employment agreements that are entered into, amended, or renewed on or after July 1, 2026.
Additional Compliance Requirements
There are two additional points Virginia employers should keep in mind.
First, employers must post copies of these laws—or state-approved summaries—alongside other required workplace notices. Penalties range from a written warning for a first violation to fines of up to $1,000 for a third violation.
Second, non-compete agreements entered into before July 1, 2026, are grandfathered and generally require no changes. However, voluntarily amending or renewing an existing agreement after that date subjects the entire agreement to the new rules.
What Practice Owners Should Do Next
Virginia’s new non-compete laws leave dentists in an unusual position. While many healthcare professionals can no longer be subject to non-compete agreements, dental practices may continue using them—for now.
Practice owners should review their employment agreements to ensure they comply with the new severance requirements and understand how future amendments or renewals could affect enforceability.
Because employment laws continue to evolve, it’s wise to periodically review employment contracts with qualified legal counsel before making changes.