I 
116TH CONGRESS 
1ST SESSION H. R. 1163 
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 ap-
pointments, and to require certain Veterans Health Administration physi-
cians to complete residency training. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2019 
Mrs. HARTZLER (for herself, Mr. BOST, Mrs. LESKO, Mr. ROUZER, Mr. 
MOONEY of West Virginia, Mr. WILSON of South Carolina, and Mr. 
CORREA) introduced the following bill; which was referred to the Com-
mittee 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 ap-
pointments, and to require certain Veterans Health Ad-
ministration physicians to complete residency training. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘VA Hiring Enhance-
ment Act’’. 
SEC. 2. NON-APPLICABILITY OF NON-DEPARTMENT OF VET-
ERANS AFFAIRS COVENANTS NOT TO COM-
PETE 
TO 
APPOINTMENT 
OF 
VETERANS 
HEALTH ADMINISTRATION PERSONNEL. 
(a) IN GENERAL.—Subchapter I of chapter 74 of title 
38, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 7414. Effect of non-Department covenants not to 
compete 
‘‘(a) NON-APPLICABILITY.—Except as provided in 
subsection (b), in the case of an individual who is an appli-
cant 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 en-
tered 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. 
‘‘(b) SERVICE OBLIGATION.—(1) Any individual who 
is appointed to such a position in the Veterans Health Ad-
ministration 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 para-
graph (2). 
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‘‘(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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