At the close of Virginia’s legislative season, several new employment laws have been approved and signed by Governor Abigail Spanberger, set to take effect on July 1, 2026. These Virginia Employment Law Changes 2026 require employers to review their employment agreements, policies, and compliance practices in advance of the effective date. Employer expectations in Virginia have changed, and the implementation timeline is limited.
Below you will find a summary description of each new law as it is currently written for your review.
Wage Transparency Requirements and Salary History Limitations
Virginia has passed SB 215 and HB 636 imposing new wage disclosure requirements and limiting the use of salary and wage history in employment decisions.
Specifically, 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 an individual.
- Using salary history to determine starting pay unless the employee voluntarily discloses it; and
- Retaliating against or refusing to hire an applicant for declining to provide salary history or requesting a wage or salary range. Additionally, if an applicant voluntarily discloses salary history, an employer may only rely on that information to justify paying the applicant more than the original offer.
Employers must also disclose the wage and salary range for a position in each public and internal job posting for new hires, promotions, transfers, or other employment opportunities. These ranges must be set in “good faith” – determined by one or more legitimate factors including an existing pay scale, a previously determined range for the role, the actual pay range for employees currently in comparable positions or the budgeted amount for the position. Excessively broad ranges may be challenged as failing to meet this good faith requirement.
Expansion of Liability under Virginia’s Wage Statutes
The Governor has signed an amended version of HB 238, a restructuring of the Commonwealth’s wage and hour, misclassification, prevailing wage, and overtime statutes. The definition of employer is expanded across multiple statutes to include any person acting directly or indirectly in the interest of an employer, thereby aligning employer definitions across the minimum wage, wage payment, overtime, and misclassification laws. It also added a new definition of “wages” to include hourly wages, legally required prevailing wages, piece rate wages, day rates, salaries, overtime wages, commissions, tips, bonuses, and damages due to misclassification.
The house bill also amends Va. Code 40.1-29 to require employers to keep pay stubs for a minimum of 3 years.
Additionally, the law enhances remedies available to misclassified workers and minimum wage claimants by authorizing liquidated damages, lengthening the significantly increasing potential liability by combining expanded damages with longer look back periods and aggregated claims. It also grants the Labor Commissioner new authority to initiate enforcement actions without receiving a written complaint from an employee and to seek restitution, damages, and statutory penalties either through administrative proceedings or by referral to the Attorney General.
Further, HB 238 also strengthens public works prevailing wage requirements by mandating on site posting of prevailing wage rates, six-year retention of payroll and classification records, and sworn pay scale certifications by contractors.
Also included in HB 238, is the uniform penalty for different employer violations. Violations of Virginia’s minimum wage, overtime, worker misclassification, wage payment, or prevailing wage laws will all result in the same penalty as of July 1, 2026. Employers that violate any of these laws will be liable for all unpaid wages, an equal amount as liquidated damages, 8% annual interest on the amount owed, and attorney’s fees. If a court determines that an employer knowingly violated the law, affected employees are entitled to an amount equal to triple the amount of wages owed, as well as reasonable attorney’s fees, under the bill. These penalties already apply to employers that violate Virginia’s wage payment law. Under the current law, each of Virginia’s wage-hour laws have separate and distinct penalty provisions. Unless there is an actual dispute between employers and employees, employers that willfully violate the wage-hour laws or intend to defraud employees are generally guilty of a misdemeanor if the amount of unpaid wages is less than $10,000 and a felony if the amount is at least $10,000, under the bill.
Employers can avoid penalties if they can prove that they acted in good faith. Employers making a good faith defense must remedy all legal violations within 14 days of being notified of the violations.
Employees have three years from the date of a potential wage-hour violation to initiate a legal action against the employer, under the bill. Similarly, HB 238 requires employers to keep an account of how gross and net wages are calculated for the three-year period.
New Restrictive Covenant Prohibitions
Governor Spanberger approved legislation SB 170 preventing employers from enforcing restrictive covenants such as non-competition agreements, customer non-solicitation agreements, and employee non-solicitation agreements, against any employees that the employer discharged, unless the employer pays the employee “severance benefits or other monetary payment.” The law provides an exception if the employee is terminated “for cause” or if the employee resigns.
Employers must disclose “severance benefits or other monetary payment” to the employee at the time of executing the restrictive covenant. These changes will only apply to restrictive covenants entered into, amended, or renewed on or after July 1, 2026; previously executed agreements will be grandfathered in without these requirements. Virginia employers should review their existing restrictive covenant agreements and determine if any changes may be necessary and, if so, should evaluate whether to roll out new agreements prior to the July 1st effective date of the revised statute.
The Virginia legislature passed one other restrictive covenant-related bill, HB 627, and SB 128, limiting the use of restrictive covenants with “health care professionals,” i.e., “any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.”
Minimum Wage Increases
With the passage of HB 1 and SB 1, Virginia’s minimum wage will increase from $12.77 per hour in 2026, to $13.75 per hour in 2027, and to $15.00 per hour in 2028. Thereafter, minimum wage will increase annually based on increases to the consumer price index.
Voluntary Emergency Responder Protections Implemented
Virginia will now prohibit an employer from discriminating or retaliating against an employee “solely” because the employee is absent from work due to responding to an emergency or during a state of emergency while acting in the capacity as a volunteer emergency responder. As set forth in SB 100, “volunteer emergency responder” includes active members or a volunteer fire department of volunteer emergency medical services agency or unit. Employers may require that an employee provide a certification of service upon returning to work. Employers are not required to pay employees for time missed due to service as a volunteer emergency responder but must permit employees to use any accrued paid leave for those absences.
New Child Labor Requirements
Governor Spanberger also signed SB 10 and HB 275 updating Virginia’s child labor and apprenticeship law. Specifically, this law maintains the existing prohibition on individuals under the age of 18 working in occupations deemed hazardous by Virginia’s Commissioner of Labor and Industry, but also prohibits working in occupations deemed hazardous by the U.S. Secretary of Labor. Additionally, the law imposes new requirements for employers hiring children 16 years or older in apprenticeship programs or other work-training programs relating to culinary arts or information technology.
Paid Family and Medical Leave Insurance Program
The Virginia General Assembly passed HB 1207, which establishes a mandatory paid family and medical leave insurance program administered by the Virginia Employment Commission. Under the new law, the Commission must have the program running by January 1, 2028, with payroll contributions beginning April 1, 2028, and benefit payments available December 1, 2028.
The state previously passed a law in 2022 that allowed employers to voluntarily purchase private family-leave policies from insurance providers. Employers may still purchase these policies under the new 2026 law, but they must be combined with a separate temporary disability policy and must meet minimum requirements, which are to be determined by the Virginia Employment Commission.
Please watch for a notification in the fall of 2027, with the up-to-date employer responsibilities and requirements for the Paid Family and Medical Leave Insurance Program.
Recommended Next Steps
- Review employment agreements, restrictive covenants, application materials, and policies to ensure compliance prior to July 1, 2026, and the outdated items are removed from use and circulation.
- Ensure managerds and human resources professionals are trained on these new laws, along with those requirements already in effect, as a preventative measure to avoid potential liability.
- Watch for updates to the mandated Paid Family and Medical Leave Insurance Program legislation throughout 2027. Requirements and responsibilities could be amended in the time period prior to implementation.
As always, we recommend speaking with your attorney, CPA, or industry professional for furthe guidance.
Reference Sites Available
To access all Virginia Labor Laws: https://doli.virginia.gov/programs/labor-law/virginia-labor-laws/
To read the full 2026 General Assembly Session Legislation: https://www.dhrm.virginia.gov/docs/default-source/default-document-library/general-assembly/2026-dhrm-website-ga-bill-tracker.pdf
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 am to 5 pm)
In-Person Locations can be found here: https://doli.virginia.gov/locations/
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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 Most Important Virginia Employment Law Changes 2026 Employers Should Prepare For?
The Virginia Employment Law Changes 2026 represent one of the most significant updates to the state’s employment regulations in recent years. Employers will face new requirements related to wage transparency, salary history restrictions, wage and hour compliance, restrictive covenant agreements, child labor regulations, volunteer emergency responder protections, and future paid family and medical leave obligations.
One of the most notable changes is the requirement that employers disclose wage or salary ranges in job postings and avoid relying on an applicant’s salary history during hiring decisions. The legislation also expands employer liability under Virginia’s wage statutes, increasing potential penalties for violations and granting greater enforcement authority to the Virginia Department of Labor and Industry.
Because these changes affect hiring, compensation, payroll administration, recordkeeping, and employment agreements, employers should conduct a comprehensive review of their policies and procedures before the July 1, 2026 effective date. Organizations that fail to prepare could face increased compliance risks, employee complaints, and financial penalties.
How Do the Virginia Employment Law Changes 2026 Affect Wage Transparency and Salary History Practices?
A major component of the Virginia Employment Law Changes 2026 is the implementation of new wage transparency requirements. Employers must now include a wage or salary range in both public and internal job postings for new positions, promotions, transfers, and other employment opportunities.
The law is designed to promote pay equity and improve transparency during the hiring process. Employers are prohibited from asking applicants about their prior wages or salary history and may not use that information when determining whether to interview, hire, or promote an individual. Additionally, employers cannot retaliate against applicants who decline to disclose salary history or who request compensation information.
To comply with the Virginia Employment Law Changes 2026, employers should review recruiting procedures, train hiring managers, update job posting templates, and establish compensation ranges that can be supported through legitimate business factors such as internal pay scales, market data, and budgeted compensation levels. Maintaining consistent and defensible compensation practices will be critical moving forward.
How Do the Virginia Employment Law Changes 2026 increase employer liability for wage and hour violations?
The Virginia Employment Law Changes 2026 significantly strengthen Virginia’s wage and hour enforcement framework. The legislation expands the definition of “employer” and “wages,” broadening the scope of who may be held liable and what types of compensation are protected under state law.
Under the new law, wages include hourly pay, salaries, overtime compensation, commissions, bonuses, tips, prevailing wages, piece-rate compensation, and damages related to worker misclassification. The law also standardizes penalties across multiple wage-related statutes.
Employers found in violation may be required to pay unpaid wages, liquidated damages equal to the amount owed, interest, attorney fees, and potentially triple damages for knowing violations. The Virginia Department of Labor and Industry will also have expanded authority to initiate investigations and enforcement actions without first receiving a written employee complaint.
As part of the Virginia Employment Law Changes 2026, employers should review payroll practices, employee classification procedures, wage calculations, overtime compliance, and record retention policies. Proactive audits can help identify and correct issues before they result in costly enforcement actions.
What Recordkeeping Requirements Are Included in the Virginia Employment Law Changes 2026?
The Virginia Employment Law Changes 2026 place a greater emphasis on payroll documentation and record retention. Employers must retain pay stubs and records showing how gross and net wages were calculated for a minimum of three years.
For employers performing public works projects, the requirements are even more extensive. Certain payroll records, employee classifications, prevailing wage documentation, and related certifications may need to be retained for six years.
Proper recordkeeping serves as a critical defense during wage disputes, audits, or investigations. Employers should evaluate whether their payroll systems, HR platforms, and document management procedures can meet the new requirements. Accurate records may also support a good-faith defense if an employer is accused of violating wage laws under the Virginia Employment Law Changes 2026.
How Do the Virginia Employment Law Changes 2026 Impact Non-Compete and Non-Solicitation Agreements?
The Virginia Employment Law Changes 2026 create new restrictions on the enforcement of certain restrictive covenants. Employers may face limitations when attempting to enforce non-compete agreements, customer non-solicitation agreements, or employee non-solicitation agreements against employees who have been terminated.
Under the new law, employers generally must provide severance benefits or another form of monetary compensation if they intend to enforce certain restrictive covenant provisions following a discharge. The legislation contains exceptions for employees who resign voluntarily or are terminated for cause.
The law also places additional restrictions on restrictive covenants involving healthcare professionals. Employers should work closely with legal counsel to review existing agreements and determine whether modifications are necessary before entering into, renewing, or amending agreements after July 1, 2026.
For many organizations, the Virginia Employment Law Changes 2026 may require a broader review of talent retention strategies and employee protection measures.
How Do the Virginia Employment Law Changes 2026 Affect Staffing Firms?
Staffing firms may feel the impact of the Virginia Employment Law Changes 2026 more directly than many other employers because of their involvement in recruiting, onboarding, payroll administration, and workforce management.
Recruiters will need to adjust hiring practices to comply with salary history restrictions and wage transparency requirements. Staffing firms must also ensure job postings include compliant compensation ranges and that recruiters understand what compensation-related questions can and cannot be asked during the hiring process.
Additionally, staffing firms often manage complex payroll structures involving overtime, bonuses, commissions, and multi-state employees. The expanded wage enforcement provisions included in the Virginia Employment Law Changes 2026 make payroll accuracy and documentation even more important.
Staffing companies should review employment agreements, recruiter training programs, payroll procedures, and compliance processes well in advance of the July 1 effective date.
Do the Virginia Employment Law Changes 2026 Include Minimum Wage Increases?
Yes. Among the most widely discussed Virginia Employment Law Changes 2026 are the state’s future minimum wage increases. Virginia’s minimum wage will increase from $12.77 per hour to $13.75 per hour in 2027 and then rise again to $15.00 per hour in 2028.
Following those increases, future adjustments will be tied to changes in the Consumer Price Index (CPI), creating an ongoing mechanism for wage growth.
Employers should begin evaluating how these increases may affect labor costs, staffing levels, pricing strategies, overtime expenses, and workforce planning. Organizations operating with narrow profit margins may need to develop long-term budgeting strategies to accommodate higher wage obligations under the Virginia Employment Law Changes 2026.
What Should Employers Do Now to Prepare for the Virginia Employment Law Changes 2026?
The best approach to the Virginia Employment Law Changes 2026 is proactive preparation. Employers should begin by reviewing employment applications, job posting templates, compensation structures, payroll procedures, restrictive covenant agreements, employee handbooks, and record retention policies.
Human resources teams, recruiters, hiring managers, payroll personnel, and supervisors should receive training on the new requirements to ensure consistent compliance across the organization.
Employers should also monitor future guidance regarding Virginia’s new Paid Family and Medical Leave Insurance Program, which will require additional employer responsibilities as implementation progresses toward 2028.
Taking action before July 1, 2026 can help employers reduce compliance risks, avoid costly penalties, and position their organizations for long-term success under the new Virginia employment law framework.
