Vermont physician non-compete law
Physician non-competes are generally not enforceable in Vermont.
If your contract is governed by Vermont law, a physician non-compete is generally void — the state does not let an employer restrict where you practice after you leave. The clause may still appear in your contract; that alone does not make it enforceable. Confirm the restriction is tied to employment (not the sale of a practice or an ownership stake), and don't let an unenforceable clause talk you out of a move it cannot actually block.
- Posture
- Banned — 18 V.S.A. ch. 226 voids physician/APP non-competes (in force July 1, 2026; prospective — agreements signed before that date may still be enforceable)
- Last reviewed
- 2026-07-01
- Radius that tends to stand
- —
- Term that tends to stand
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Governing law: 18 V.S.A. ch. 226, §§ 9533(d)(1) & 9534(b)(1) (created by H.583, 2026 sess., signed by Gov. June 15, 2026 as Act 133; eff. July 1, 2026)
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
IN FORCE July 1, 2026. H.583 was signed by Governor Scott on June 15, 2026 (Act 133) and took effect July 1, 2026. CAVEAT — PROSPECTIVE ONLY: the ban voids covenants going forward; a non-compete a physician or APP signed BEFORE July 1, 2026 may still be enforced under the prior common-law reasonableness standard (no express retroactivity language). 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. For agreements predating the effective date, Vermont common law governs, which the courts apply cautiously and employee-favorably.
Common questions
Are physician non-competes enforceable in Vermont?
Physician non-competes are generally not enforceable in Vermont. Governing law: 18 V.S.A. ch. 226, §§ 9533(d)(1) & 9534(b)(1) (created by H.583, 2026 sess., signed by Gov. June 15, 2026 as Act 133; eff. July 1, 2026).
My Vermont contract still has a non-compete — does that matter?
A clause can appear in a contract without being enforceable. Under Vermont law a physician employment non-compete is generally void, so confirm the restriction is not tied to a practice sale or ownership interest, and check your own contract's exact wording.
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 2026-07-01.