The Virginia employment law changes 2026 brought one of the biggest rewrites of Virginia workplace law in years. At the close of the 2026 General Assembly session, Governor Abigail Spanberger signed new laws covering pay transparency, wage-and-hour liability, non-compete agreements, the minimum wage, volunteer emergency responders, child labor and paid family leave. Most took effect July 1, 2026. Others phase in through 2028.
If you employ people in Virginia, these changes affect your job postings, hiring process, employment agreements, payroll records and budget. Below is a plain-English summary of each law, followed by what the Virginia employment law changes 2026 mean for staffing firms specifically.
1. Wage Transparency Requirements and Salary History Limits (HB 636 / SB 215)
Effective July 1, 2026, Virginia employers are prohibited from:
- Asking an applicant about their current or prior wages or salary.
- Relying on salary history when deciding whether to interview, hire or promote someone.
- Using salary history to set starting pay, unless the applicant voluntarily discloses it.
- Retaliating against or refusing to hire an applicant who declines to share salary history or who asks for the pay range.
If an applicant volunteers their salary history, the employer may use it only to justify paying the applicant more than the original offer.
Employers must also include a wage or salary range in every public and internal job posting, including postings for new hires, promotions and transfers. The range must be set in good faith, based on legitimate factors such as an existing pay scale, a previously set range for the role, what current employees in comparable roles are paid, or the budgeted amount for the position. A range that is excessively broad can be challenged as not set in good faith.
The law has no minimum employer size. The Attorney General can impose penalties of up to $1,000 for a first violation and up to $5,000 for each later violation, and applicants and employees can sue within one year of an alleged violation. For most employers, this is the most visible of the Virginia employment law changes 2026, because it shows up in every job ad.
2. Expanded Liability Under Virginia's Wage Statutes (HB 238)
Of all the Virginia employment law changes 2026, HB 238 carries the most financial risk. It restructures Virginia’s wage payment, minimum wage, overtime, misclassification and prevailing wage laws. The key changes:
- Broader definition of “employer.” Across these statutes, “employer” now includes any person acting directly or indirectly in the interest of an employer in relation to an employee.
- Broader definition of “wages.” Wages now include hourly wages, legally required prevailing wages, piece rates, day rates, salaries, overtime, commissions, tips, bonuses and damages owed for misclassification.
- One penalty structure for every wage-hour violation. Minimum wage, overtime, misclassification, wage payment and prevailing wage violations now share the remedies that already applied under the wage payment law: all unpaid wages, an equal amount as liquidated damages, 8% annual interest and attorney’s fees. If a court finds the employer knowingly failed to pay, employees can recover triple the wages owed.
- Three years to sue. Employees have three years from a violation to bring a claim, and claims can be brought on behalf of groups of similarly situated workers.
- Three years of pay records. Employers must keep pay stubs, or an online accounting of how gross and net pay were calculated, for at least three years.
- New enforcement authority. The Commissioner of Labor and Industry can open an enforcement action without a written employee complaint and seek restitution, damages and penalties, either administratively or through the Attorney General.
Virginia’s wage payment law already carries criminal penalties for willful violations: a misdemeanor when unpaid wages are under $10,000 and a felony at $10,000 or more.
For public works contractors, HB 238 also requires on-site posting of prevailing wage rates, six-year retention of payroll and classification records, and sworn certifications of pay scales.
3. New Limits on Non-Competes and Other Restrictive Covenants (SB 170 and HB 627 / SB 128)
Under SB 170, Virginia employers can no longer enforce a non-compete, customer non-solicitation or employee non-solicitation agreement against an employee they discharge, unless the employer pays severance or another monetary payment. The rule does not apply if the employee is terminated for cause or resigns.
The severance or payment must be disclosed to the employee when the restrictive covenant is signed. The rule applies only to agreements entered into, amended or renewed on or after July 1, 2026; earlier agreements are grandfathered. For employers that use restrictive covenants, this is one of the Virginia employment law changes 2026 that requires new paperwork, not just a new policy.
A second law, HB 627 / SB 128, largely bars restrictive covenants for health care professionals, meaning anyone licensed, registered or certified by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology or Social Work. Limited exceptions remain for the sale of a practice, repayment of recruitment or training costs, and certain patient non-solicitation terms.
4. Minimum Wage Increases (HB 1 / SB 1)
Virginia’s minimum wage is $12.77 per hour in 2026. Under HB 1 and SB 1, it rises to $13.75 on January 1, 2027 and $15.00 on January 1, 2028. After that, it will adjust each year based on the consumer price index. Of all the Virginia employment law changes 2026, this is the easiest to budget for.
5. Protections for Volunteer Emergency Responders (SB 100)
Employers may not discriminate or retaliate against an employee solely because the employee was absent while responding to an emergency, or during a declared state of emergency, as a volunteer emergency responder. That includes active members of a volunteer fire department or volunteer emergency medical services agency. Employers may ask for a certification of service when the employee returns. They do not have to pay for the time missed, but they must let the employee use accrued paid leave.
6. New Child Labor Requirements (SB 10 / HB 275)
Workers under 18 were already barred from occupations Virginia’s Commissioner of Labor and Industry considers hazardous. The new law also bars them from occupations the U.S. Secretary of Labor considers hazardous. It adds new requirements for employers hiring 16- and 17-year-olds in apprenticeship or work-training programs in culinary arts or information technology.
7. Paid Family and Medical Leave Insurance Program (HB 1207 / SB 2)
Virginia is creating a mandatory paid family and medical leave insurance program, run by the Virginia Employment Commission (VEC). The key dates:
- By October 1, 2027: the VEC sets the first contribution rate.
- April 1, 2028: payroll contributions begin.
- December 1, 2028: benefits become available.
Eligible employees will be able to take up to 12 weeks of paid leave for qualifying reasons, such as the birth or adoption of a child or a serious health condition, at roughly 80% of their average weekly wage up to a cap. Employers with 11 or more employees pay the contribution and may deduct up to half of it from employee wages. Employers with 10 or fewer employees withhold the employee share but do not pay an employer share. Employers can apply to the VEC to use a private plan instead, as long as it provides equal or better benefits.
If you employ workers in other states, you have likely seen similar programs. See our breakdown of Maryland FAMLI for staffing agencies for a comparable rollout. The VEC is expected to publish employer guidance before contributions begin, and paid leave is the last of the Virginia employment law changes 2026 to phase in.
What the Virginia Employment Law Changes 2026 Mean for Staffing Firms
Staffing firms are hit harder than most employers by these laws. As the employer of record for temporary workers, a staffing firm posts more jobs, runs more payroll and manages more agreements than a typical company its size. Here is where the exposure is.
Every job posting needs a pay range
Staffing firms can post dozens of openings a week, and each one now needs a good-faith pay range. Because the law has no size threshold, a 5-person agency faces the same posting rules as a large one. Build the range into your job order intake, so the pay rate you agree on with the client goes straight into the posting.
Misclassification risk is more expensive
Under HB 238, misclassifying a worker now carries the full wage-payment penalty structure: double damages, 8% interest, attorney’s fees and possible treble damages. If you place any 1099 contractors in Virginia, revisit the analysis in our guide to W-2 vs 1099 staffing.
The broader "employer" definition reaches further
Defining an employer as anyone “acting directly or indirectly in the interest of an employer” can widen who is responsible when wages go unpaid. Staffing firms and their clients should review indemnification and wage-compliance terms in their service agreements with counsel.
Minimum wage increases flow straight into bill rates
The step-ups to $13.75 in 2027 and $15.00 in 2028 raise pay rates and the payroll taxes and workers’ comp tied to them. If your client contracts don’t allow bill-rate increases when wage laws change, your markup shrinks every January. Our guide to staffing firm profit margins covers how to protect margin when labor costs rise. Higher wages also mean more cash going out every payroll before clients pay, which is a common source of staffing agency cash flow strain.
Recruiter non-competes need a severance plan
SB 170 applies to your internal recruiters and account managers, not just placed workers. If you rely on restrictive covenants to protect client relationships, any new or renewed Virginia agreement needs a disclosed severance or payment term to be enforceable after a termination without cause. See our overview of staffing non-compete agreements for what still holds up. Healthcare staffing firms placing nurses and other covered professionals in Virginia should review those agreements separately under HB 627 / SB 128.
Payroll records and PFML deductions add back-office work
Three-year pay record retention, a new payroll deduction starting in 2028 and higher wage rates all land on payroll and back-office teams. If your staffing back office is already stretched, plan the PFML setup well before April 1, 2028.
Recommended Next Steps for Virginia Employers
With most of the Virginia employment law changes 2026 now in effect, here is where to focus:
- Audit job postings and application forms. Add good-faith pay ranges and remove every salary history question.
- Update restrictive covenant templates. Any agreement signed, amended or renewed since July 1, 2026 needs a disclosed severance or payment term to be enforceable after a termination without cause.
- Check wage-hour compliance. Review worker classification, overtime and pay stub retention given the higher penalties and three-year lookback.
- Plan for January 1, 2027. Update pay rates for the $13.75 minimum wage and, if you are a staffing firm, the bill rates that go with them.
- Train managers and HR. Make sure everyone involved in hiring, firing and pay decisions knows the new rules.
- Watch for VEC guidance on paid leave. Contribution rates are due by October 1, 2027, and requirements may change before payroll deductions start.
As always, speak with your attorney, CPA or an industry professional for guidance specific to your business.
How Madison Resources Helps Staffing Firms Keep Up
Since 1992, Madison Resources has helped independent staffing firms handle the payroll side of growth. Our back office services cover payroll processing, invoicing and payroll tax processing, so the Virginia employment law changes 2026, from pay stub retention rules to new state payroll deductions, don’t fall entirely on your team. When wage increases push weekly payroll higher, payroll funding keeps your workers paid on time while you wait on client invoices.
Talk to our team about how we support staffing firms working in Virginia and across the country.
Reference Sites
- Virginia labor laws: Virginia Department of Labor and Industry
- Full 2026 General Assembly legislation: 2026 DHRM General Assembly bill tracker (PDF)
- Paid family and medical leave updates: Virginia Employment Commission
Contact Information
To speak with a representative from the Virginia Department of Labor and Industry:
- Mail: Virginia Department of Labor and Industry, Brookfield Place, 6606 West Broad Street, Richmond, VA 23230
- Phone: (804) 371-2327 (Monday–Friday, 8 a.m. to 5 p.m.)
- In-person locations: doli.virginia.gov/locations
Madison Resources is committed to being a dependable partner to your staffing firm by sharing timely updates, promoting operational accuracy, and providing practical resources to help you stay ahead in a constantly evolving compliance landscape.
Stay Informed. Stay Compliant. Grow With Confidence.
Explore our website to find more staffing insights. Madison Resources is the premier payroll funding and back office support partner to the staffing industry. Grow with confidence.
Frequently Asked Questions About Virginia Employment Law Changes 2026
Below are answers to some of the most common questions about Virginia Employment Law Changes 2026.
What are the biggest Virginia employment law changes in 2026?
The biggest Virginia employment law changes 2026 are mandatory pay ranges in job postings with a ban on salary history questions (HB 636 / SB 215), tougher and unified wage-theft penalties (HB 238), limits on non-competes for employees discharged without cause (SB 170), minimum wage increases to $13.75 in 2027 and $15.00 in 2028 (HB 1 / SB 1), and a new state paid family and medical leave program (HB 1207 / SB 2).
When did the Virginia employment law changes 2026 take effect?
Most took effect July 1, 2026, including pay transparency, HB 238’s wage-hour changes, the non-compete limits, volunteer emergency responder protections and the child labor updates. The minimum wage rises on January 1, 2027 and January 1, 2028. Paid family leave contributions start April 1, 2028, with benefits available December 1, 2028.
Does Virginia's pay transparency law apply to staffing agencies?
Virginia’s pay transparency law has no minimum employer size, so it applies to staffing agencies posting jobs for their own employees, including temporary workers. Each public and internal posting needs a good-faith pay range. If you post on behalf of clients, confirm with counsel who is responsible for the range.
What will Virginia's minimum wage be in 2027 and 2028?
Virginia’s minimum wage is $12.77 in 2026. It rises to $13.75 per hour on January 1, 2027 and $15.00 per hour on January 1, 2028, then adjusts annually with the consumer price index.
How does SB 170 change non-competes for Virginia employers?
For agreements entered into, amended or renewed on or after July 1, 2026, a Virginia employer cannot enforce a non-compete or non-solicitation agreement against an employee it discharges unless it pays severance or another monetary payment disclosed when the agreement was signed. The rule does not apply to terminations for cause or resignations.
What penalties do Virginia employers face for wage violations under HB 238?
Employers can owe all unpaid wages, an equal amount in liquidated damages, 8% annual interest and attorney’s fees. Knowing violations can bring triple damages. Employees have three years to file, and the Commissioner of Labor and Industry can start an investigation without a written complaint.
When does Virginia paid family and medical leave start?
Payroll contributions begin April 1, 2028, and employees can start claiming benefits December 1, 2028. The Virginia Employment Commission must set the first contribution rate by October 1, 2027.
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