Sec. 710. Non-applicability of non-Department of Veterans Affairs covenants not to compete to appointment of Veterans Health Administration personnel
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/bill/117/hr/3967/pcs/section-710·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subchapter I of chapter 74 of title 38, United States Code, is amended by adding at the end the following new section: Except as provided in subsection (b), in the case of an individual who is an applicant for appointment to a position in the Veterans Health Administration described in section 7401 of this title, any covenant not to compete into which the individual has entered with a non-Department facility or party shall have no force or effect with respect to the appointment of the individual to such a position.
Any individual who is appointed to such a position in the Veterans Health Administration shall, as a condition of such appointment, agree to provide clinical services at a Department medical facility for the duration of the period described in paragraph (2). The period described in this paragraph is the period that begins on the date on which an individual is appointed to such a position and ends on the latter of the following dates: The date that is one year after such date of appointment.
The date of the termination of any covenant not to compete entered into between the individual and a non-Department facility or party. The Secretary may waive the requirement under paragraph
(1)with respect to an individual at the discretion of the Secretary. In the case of an individual who is appointed to such a position in the Veterans Health Administration who has entered into a covenant not to compete that is rendered non-applicable pursuant to subsection (a), if the individual’s employment at the Veterans Health Administration is terminated for any reason before the specified termination date of such covenant, subsection
(a)shall not apply with respect to such covenant after the date of the termination of the individual’s employment at the Veterans Health Administration. In this section, the term covenant not to compete means an agreement— between an employee and employer or a contractor and principal that restricts such employee or contractor from performing— any work for another employer for a specified period of time; any work in a specified geographical area; or work for another employer performing work that is similar to the work such employee or contractor performed for the employer or principal, included as a party to the agreement; and that is entered into after the date of enactment of this Act. . The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 7413 the following new item: 7414. Effect of non-Department covenants not to compete. .