Title: VA Hiring Enhancement Act
Policy area: Armed Forces and National Security

Summary:
VA Hiring Enhancement Act
This bill modifies requirements and procedures related to the hiring of physicians at the Department of Veterans Affairs (VA).
Specifically, the bill negates enforcement of a noncompete agreement that an applicant for a specified appointee position (e.g., physician) in the Veterans Health Administration (VHA) has entered into with a non-VA facility or party. As a condition of terminating the noncompete agreement, the physician must agree to serve at the VHA for one year or until the expiration of the noncompete agreement, whichever is later.
The bill also authorizes the VA to offer a contingent physician's appointment to a person if the VA anticipates that the person will have completed a residency program leading to board eligibility in a specialty and met other requirements for the appointment within two years after the VA offer.
Eligibility requirements for a VA physician's appointment are revised to require completion of a residency program rather than an internship.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3401 Introduced in House (IH)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``VA Hiring Enhancement Act''.

SEC. 2. NON-APPLICABILITY OF NON-DEPARTMENT OF VETERANS AFFAIRS 
              COVENANTS NOT TO COMPETE 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:
``Sec. 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 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.
    ``(b) Service Obligation.--(1) 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).
    ``(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 covenant not to 
        compete entered into between the individual and a non-
        Department facility or party.
    ``(3) The Secretary may waive the requirement under paragraph (1) 
with respect to an individual at the discretion of the Secretary.
    ``(c) Termination of Department Employment.--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.
    ``(d) Covenant Not To Compete.--In this section, the term `covenant 
not to compete' means an agreement--
            ``(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 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
            ``(2) that is entered into after the date of enactment 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)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``or to be offered an appointment to such 
                position on a contingent basis under subsection (h)'' 
                after ``position''; and
                    (B) by striking subparagraph (B) and inserting 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 appointment 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 subsection:
    ``(h)(1) The Secretary may appoint an individual under subsection 
(b)(1) on a contingent basis in accordance with this subsection if the 
Secretary reasonably anticipated that the individual will have 
completed the requirements 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 two years after the date of the 
contingent appointment, the individual completes all the requirements 
for appointment under subsection (b)(1).
    ``(3) An individual who is appointed on a contingent basis under 
paragraph (1) who fails to complete the requirements for appointment 
under subsection (b)(1) by not later than two years after the date on 
which the individual is so appointed may not be appointed to such 
position on a permanent basis.''.
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