I 

117TH CONGRESS 

1ST SESSION H. R. 3401 

To amend title 38, United States Code, to provide for the non-applicability 

of non-Department of Veterans Affairs covenants not to compete to 

the appointment of certain Veterans Health Administration personnel, 

to permit the Veterans Health Administration to make contingent appointments, and to require certain Veterans Health Administration physicians to complete residency training. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2021 

Mrs. HARTZLER (for herself, Mr. ZELDIN, Mr. DIAZ-BALART, Mr. GALLAGHER, and Mr. ROUZER) introduced the following bill; which was referred 

to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to provide for the 

non-applicability of non-Department of Veterans Affairs 

covenants not to compete to the appointment of certain 

Veterans Health Administration personnel, to permit the 

Veterans Health Administration to make contingent appointments, and to require certain Veterans Health Administration physicians to complete residency training. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘VA Hiring Enhance3 ment Act’’. 

4 SEC. 2. NON-APPLICABILITY OF NON-DEPARTMENT OF VET5 ERANS AFFAIRS COVENANTS NOT TO COM6 PETE TO APPOINTMENT OF VETERANS 

7 HEALTH ADMINISTRATION PERSONNEL. 

8 (a) IN GENERAL.—Subchapter I of chapter 74 of title 

9 38, United States Code, is amended by adding at the end 

10 the following new section: 

11 ‘‘§ 7414. Effect of non-Department covenants not to 

12 compete 

13 ‘‘(a) NON-APPLICABILITY.—Except as provided in 

14 subsection (b), in the case of an individual who is an appli15 cant for appointment to a position in the Veterans Health 

16 Administration described in section 7401 of this title, any 

17 covenant not to compete into which the individual has en18 tered with a non-Department facility or party shall have 

19 no force or effect with respect to the appointment of the 

20 individual to such a position. 

21 ‘‘(b) SERVICE OBLIGATION.—(1) Any individual who 

22 is appointed to such a position in the Veterans Health Ad23 ministration shall, as a condition of such appointment, 

24 agree to provide clinical services at a Department medical 

25 facility for the duration of the period described in para26 graph (2). 


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1 ‘‘(2) The period described in this paragraph is the 

2 period that begins on the date on which an individual is 

3 appointed to such a position and ends on the latter of the 

4 following dates: 

5 ‘‘(A) The date that is one year after such date 

6 of appointment. 

7 ‘‘(B) The date of the termination of any cov8 enant not to compete entered into between the indi9 vidual and a non-Department facility or party. 

10 ‘‘(3) The Secretary may waive the requirement under 

11 paragraph (1) with respect to an individual at the discre12 tion of the Secretary. 

13 ‘‘(c) TERMINATION OF DEPARTMENT EMPLOY14 MENT.—In the case of an individual who is appointed to 

15 such a position in the Veterans Health Administration 

16 who has entered into a covenant not to compete that is 

17 rendered non-applicable pursuant to subsection (a), if the 

18 individual’s employment at the Veterans Health Adminis19 tration is terminated for any reason before the specified 

20 termination date of such covenant, subsection (a) shall not 

21 apply with respect to such covenant after the date of the 

22 termination of the individual’s employment at the Vet23 erans Health Administration. 

24 ‘‘(d) COVENANT NOT TO COMPETE.—In this section, 

25 the term ‘covenant not to compete’ means an agreement— 


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1 ‘‘(1) between an employee and employer or a 

2 contractor and principal that restricts such employee 

3 or contractor from performing— 

4 ‘‘(A) any work for another employer for a 

5 specified period of time; 

6 ‘‘(B) any work in a specified geographical 

7 area; or 

8 ‘‘(C) work for another employer per9 forming work that is similar to the work such 

10 employee or contractor performed for the em11 ployer or principal, included as a party to the 

12 agreement; and 

13 ‘‘(2) that is entered into after the date of enact14 ment of this Act.’’. 

15 (b) CLERICAL AMENDMENT.—The table of sections 

16 at the beginning of such chapter is amended by inserting 

17 after the item relating to section 7413 the following new 

18 item: 

‘‘7414. Effect of non-Department covenants not to compete.’’. 

19 SEC. 3. RECRUITMENT OF PHYSICIANS ON A CONTINGENT 

20 BASIS PRIOR TO COMPLETION OF TRAINING 

21 REQUIREMENTS. 

22 Section 7402 of title 38, United States Code, is 

23 amended— 

24 (1) in subsection (b)(1)— 


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1 (A) in the matter preceding subparagraph 

2 (A) by inserting ‘‘or to be offered an appoint3 ment to such position on a contingent basis 

4 under subsection (h)’’ after ‘‘position’’; and 

5 (B) by striking subparagraph (B) and in6 serting the following: 

7 ‘‘(B)(i) have completed a residency leading to 

8 board eligibility in a specialty, satisfactory to the 

9 Secretary; or 

10 ‘‘(ii) with respect to an offer for an appoint11 ment on a contingent basis under subsection (h), 

12 complete such a residency by not later than two 

13 years after the date of such offer; and’’; and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(h)(1) The Secretary may appoint an individual 

17 under subsection (b)(1) on a contingent basis in accord18 ance with this subsection if the Secretary reasonably an19 ticipated that the individual will have completed the re20 quirements for appointment under such subsection (b)(1) 

21 by not later than two years after the date on which the 

22 individual is so appointed. 

23 ‘‘(2) An individual who is appointed to a position on 

24 a contingent basis under paragraph (1) shall be appointed 

25 to such position on a permanent basis if, by not later than 


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1 two years after the date of the contingent appointment, 

2 the individual completes all the requirements for appoint3 ment under subsection (b)(1). 

4 ‘‘(3) An individual who is appointed on a contingent 

5 basis under paragraph (1) who fails to complete the re6 quirements for appointment under subsection (b)(1) by 

7 not later than two years after the date on which the indi8 vidual is so appointed may not be appointed to such posi9 tion on a permanent basis.’’. 

Æ 


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