Vermont physician non-compete law
Vermont enforces physician non-competes within defined limits.
Vermont treats a reasonable physician non-compete as binding, so assume yours will apply and negotiate the scope down before you sign. Restrictions that tend to stand here run about 10–25 miles and 12–24 months; terms beyond that are the most vulnerable. Narrow the radius to the specific sites where you practiced, shorten the term, and ask for a defined buyout as a release valve.
- Posture
- Enforceable now (common-law reasonableness); statewide physician non-compete ban effective July 1, 2026 (prospective)
- Last reviewed
- 2026-06-10
- Radius that tends to stand
- 10–25 miles
- Term that tends to stand
- 12–24 months
Governing law: 18 V.S.A. ch. 226, §§ 9533(d)(1) & 9534(b)(1) (created by H.583, 2026 sess.; passed both chambers, delivered to Governor June 9, 2026; eff. July 1, 2026). Until July 1, 2026: no non-compete statute — common law only.
These are the general rules for Vermont. Your contract's exact radius, term, and buyout decide how it actually lands. See how your own clause compares — free.
Check your contract — free →A case that shaped this
Roy's Orthopedic, Inc. v. Lavigne (1982, Vt. Supreme Court) — Restraints on trade are enforced only if not contrary to public policy, necessary to protect the employer, and not unduly restrictive of the employee; court reversed enforcement of a 3-year covenant for inadequate findings on reasonableness.
The detailed picture
CURRENT STATUS (as of review): physician non-competes remain enforceable under common-law reasonableness for agreements entered before the effective date below; the ban is prospective and not retroactive. Verified against H.583 bill text. New 18 V.S.A. ch. 226 ("Transaction Limitations and Clinical Decision-Making"): § 9533(d)(1)(A) makes a noncompetition agreement between a "licensee" and another person void and unenforceable, EXCEPT (B) it is valid/enforceable where the licensee owns or controls a 25%+ equity/membership interest in the counterparty; § 9534(b)(1) flatly voids a noncompete between a licensee and an employer/other unlicensed entity (no carve-out). "Licensee" (§ 9521(10)) = a physician under 26 V.S.A. ch. 23 or 33, an APRN under ch. 28, or a physician assistant under ch. 31 — so the ban reaches APPs. The Act also voids NDA/non-disparagement agreements with MSOs/employers, codifies a corporate-practice-of-medicine bar, and requires physician majority ownership. Effective July 1, 2026 (Sec. 2). NOTE: as of the verification date the bill had passed both chambers and been delivered to the Governor but was NOT yet signed; if signed or allowed to become law, the ban is in force July 1, 2026. Until then there is no non-compete statute and physician covenants are governed by common-law reasonableness, which Vermont courts apply cautiously and employee-favorably.
Common questions
Are physician non-competes enforceable in Vermont?
Vermont enforces physician non-competes within defined limits. Governing law: 18 V.S.A. ch. 226, §§ 9533(d)(1) & 9534(b)(1) (created by H.583, 2026 sess.; passed both chambers, delivered to Governor June 9, 2026; eff. July 1, 2026). Until July 1, 2026: no non-compete statute — common law only..
How far and how long can a Vermont physician non-compete reach?
Restrictions that tend to stand here run about 10–25 miles and 12–24 months; terms beyond that are the most vulnerable. The radius and term in your specific contract decide how it lands — check your own clause.
Other states
General legal information, not legal advice. Non-compete enforceability turns on the exact wording of your contract and your circumstances; this page describes the state's general posture as last reviewed 2026-06-10.