Virginia’s Wide-Ranging Workplace Reforms: Employer Takeaways for July 1 Go Live

Takeaways

• Virginia lawmakers advanced major workplace legislation in the 2026 session that would materially expand employer obligations. 
• Key proposals include minimum wage increases, paid sick leave and family leave mandates, menopause-related accommodations, expanded VHRA anti-discrimination coverage and tighter limits on non-competes. The governor has signed, amended or vetoed some bills.
• Most changes take effect 07.01.26 or later.

Related link

• Virginia Legislative Information - 2026 Regular Session

Article

The Virginia General Assembly advanced wide-ranging labor and employment reforms during its 2026 legislative session that will require employers to assess and revise their policies and practices.

This article provides an overview of the most consequential measures signed by Gov. Abigail Spanberger on April 13, 2026, and their expected impact on employers. The effective date is July 1, 2026, unless otherwise noted. The governor also vetoed or sent back some bills with recommendations.

Minimum Wage Increase, Compensation Reform

Signed:

• House Bill (HB) 1 and Senate Bill (SB) 1 will gradually increase the state minimum wage to $15 per hour by Jan. 1, 2028. The minimum wage rises to $12.77 on Jan. 1, 2026, $13.75 in 2027, and $15 in 2028. 
• SB 121 (which also includes HB 20) repeals exemptions for farm workers and certain temporary foreign workers.

Changes proposed:

• HB 238 would allow employees to bring civil actions for minimum wage, misclassification, or prevailing wage violations and expand anti-retaliation protections for employees who report suspected legal violations in good faith. The governor proposed amendments to HB 238 that would delay the joint and several wage liability provision for construction contracts by six years, clarify definitions, expand the commissioner’s investigative authority, and protect complainant confidentiality.

Paid Sick Leave and Benefit Mandates

Changes proposed:

• HB 5 would expand paid sick leave to cover all employees (not just home healthcare workers). Employees accrue one hour of paid sick leave for every 30 hours worked and leave time may be used for illness, caregiving, or domestic violence services. Employers may front load 40 hours annually. Employer compliance would begin July 1, 2027. The governor proposed amending HB 5 to clarify key definitions, expand permissible uses of leave, and improve compliance moving forward. 
   
• SB 2 (which also includes HB 1207) would establish a paid family and medical leave insurance program. Payroll deductions would begin April 1, 2028, with benefits beginning Jan. 1, 2029. Eligible employees may receive up to 12 weeks of leave, with benefits up to 80% of average wages. The governor proposed amending SB 2 to clarify the definition of a “family member,” expand the definition of “safety services,” and clarify certification and job restoration requirements.

Overtime, Right-to-Work Repeal, Pay Transparency

Changes proposed:

• SB 28 (which also includes HB 27) would extend overtime protections to housekeepers and nannies effect July 1, 2027. The governor proposed amending SB 28 to strike certain provisions.
   
• HB 636 (which incorporates HB 1164 and includes SB 215) would require employers to disclose wage or salary ranges in job postings and to limit inquiries into prior compensation. Posted ranges must be set in “good faith,” determined by the totality of the circumstances. The governor proposed a substitute bill.

SB 32, which would have repealed Virginia’s right-to-work law, failed to pass the legislature after significant opposition.

Anti-Discrimination, Worker Rights

The legislature passed several bills to broaden the Virginia Human Rights Act (VHRA) and add new protected categories.

Signed:

• SB 637 lowers the VHRA coverage threshold by reforming the definition of “employer” to businesses with at least five employees (current law sets a variety of thresholds). It also extends age-discrimination protections to employers with at least five employees. SB 637 will increase compliance obligations.

Changes proposed:

• HB 925 would extend the deadline to file a discrimination charge with the Virginia Office of Civil Rights from 300 days to two years and allow suit after 180 days if the charge is filed with a local human rights agency. The governor proposed amending HB 925 to reduce the statute of limitations to file a charge to one year.
   
• HB 1173 (which also includes SB 258) would require employers to provide reasonable accommodations for menopause- and perimenopause-related conditions under the VHRA and would mandate a workforce study by July 1, 2028. The governor proposed amending HB 1173 to remove any requirement related to workplace accommodations and instead direct the commissioner of labor and industry to conduct a study on menopause and perimenopause in the workforce.

Although it failed to pass in the House, HB 722 would have clarified whistleblower protections related to the Virginia Occupational Safety and Health (VOSH). VOSH-related retaliation claims remain theoretically actionable under the Whistleblower Protection Law. The substance of HB 722 was later incorporated into HB 930 to prohibit employers from retaliating against employees. HB 930 also failed to pass.

Class Actions

Changes proposed:

• HB 449 (which also includes SB 229) would create a new class action mechanism for the first time in Virginia. Employers could face a class of employees with similar claims. The governor proposed amendments providing additional appellate jurisdiction to the Court of Appeals and extending class complaints to the Virginia Consumer Protection Act.

Restrictive Covenants, AI Regulation, Voluntary Emergency Responders

Signed:

• SB 170, incorporating SB 569, bars enforcement of non-competes following involuntary termination if severance is not offered. These restrictions would only apply to non-compete agreements entered into on or after July 1, 2026. 
   
• SB 100 prohibits employers from retaliating against employees who miss work to serve as voluntary emergency responders during declared emergencies and allows affected employees to seek reinstatement and lost wages.

Changes proposed:

• SB 128 (which also includes HB 627) would ban non-competes for certain healthcare workers (including doctors, nurses, and pharmacists). The governor suggested changes to SB 128.

Although it did not pass the House, HB 999 would have regulated employer use of potentially discriminatory automated decision systems.

Public Employers

Changes proposed:

• HB 670 would waive sovereign immunity for the Commonwealth and local governments with respect to employee misclassification and wage-and-hour claims. The governor proposed amending HB 670 to state “[t]hat the provisions of this act shall not become effective unless reenacted by the 2027 Session of the General Assembly.”
   
• HB 1263 (which also includes SB 378) would authorize public sector collective bargaining beyond the current framework and would be implemented in phases. It would require the Virginia Department of Labor and Industry to enact rules, to be adopted by the Public Employee Relations Board by July 1, 2026, and bar petitions for bargaining unit elections (unless previously authorized by ordinance or resolution) until final rules are in place. The governor proposed amendments providing that any local jurisdiction that already passed an ordinance or resolution permitting collective bargaining can retain their local procedures until Jan. 1, 2030. The proposed amendments would also delay the automatic trigger to collective bargaining based on the Public Employee Relations Board final rules until Jan. 1, 2030.

Takeaways for Employers

The legislature is set to reconvene on April 22 and can consider the governor’s recommendations, amendments, and vetoes on legislation it passed. Employers should continue to monitor developments and, where needed, update handbooks and policies.

Jackson Lewis attorneys are available to assist employers with compliance with these evolving legal requirements.

(Law Graduate Nina Bundy contributed to this article.)