‘‘(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: 
‘‘(A) The date that is one year after such date 
of appointment. 
‘‘(B) The date of the termination of any cov-
enant not to compete entered into between the indi-
vidual and a non-Department facility or party. 
‘‘(3) The Secretary may waive the requirement under 
paragraph (1) with respect to an individual at the discre-
tion of the Secretary. 
‘‘(c) TERMINATION
OF
DEPARTMENT
EMPLOY-
MENT.—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 Adminis-
tration 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 Vet-
erans Health Administration. 
‘‘(d) COVENANT NOT TO COMPETE.—In this section, 
the term ‘covenant not to compete’ means an agreement— 
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‘‘(1) between an employee and employer or a 
contractor and principal that restricts such employee 
or contractor from performing— 
‘‘(A) any work for another employer for a 
specified period of time; 
‘‘(B) any work in a specified geographical 
area; or 
‘‘(C) work for another employer per-
forming work that is similar to the work such 
employee or contractor performed for the em-
ployer or principal, included as a party to the 
agreement; and 
‘‘(2) that is entered into after the date of enact-
ment of this Act.’’. 
(b) CLERICAL AMENDMENT.—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.’’. 
SEC. 3. RECRUITMENT OF PHYSICIANS ON A CONTINGENT 
BASIS PRIOR TO COMPLETION OF TRAINING 
REQUIREMENTS. 
Section 7402 of title 38, United States Code, is 
amended— 
(1) in subsection (b)(1)— 
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(A) in the matter preceding subparagraph 
(A) by inserting ‘‘or to be offered an appoint-
ment to such position on a contingent basis 
under subsection (h)’’ after ‘‘position’’; and 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B)(i) have completed a residency leading to 
board eligibility in a specialty, satisfactory to the 
Secretary; or 
‘‘(ii) with respect to an offer for an appoint-
ment on a contingent basis under subsection (h), 
complete such a residency by not later than two 
years after the date of such offer; and’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h)(1) The Secretary may appoint an individual 
under subsection (b)(1) on a contingent basis in accord-
ance with this subsection if the Secretary reasonably an-
ticipated that the individual will have completed the re-
quirements for appointment under such subsection (b)(1) 
by not later than two years after the date on which the 
individual is so appointed. 
‘‘(2) An individual who is appointed to a position on 
a contingent basis under paragraph (1) shall be appointed 
to such position on a permanent basis if, by not later than 
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two years after the date of the contingent appointment, 
the individual completes all the requirements for appoint-
ment under subsection (b)(1). 
‘‘(3) An individual who is appointed on a contingent 
basis under paragraph (1) who fails to complete the re-
quirements for appointment under subsection (b)(1) by 
not later than two years after the date on which the indi-
vidual is so appointed may not be appointed to such posi-
tion on a permanent basis.’’. 
Æ 
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