Pay Transparency, Non-Competes, Paid Sick Leave + More: Changes for Virginia Employers Start on July 1

Takeaways

• Virginia is requiring greater pay transparency and putting tighter restrictions on non-compete agreements, including bans for certain workers.
• New statewide paid sick leave, paid family and medical leave and other protections significantly broaden employee benefits and workplace rights over time.
• New laws increase employer obligations around wages, anti-discrimination and liability.

Related link

• Virginia Legislative Information - 2026 Regular Session

Article

Virginia’s 2026 legislative session following newly unified Democratic control of the executive branch and General Assembly has expanded employer compliance obligations and enhanced employee rights across the employment lifecycle.

Most changes and new statutes discussed in this article will take effect July 1, 2026, with a few fully phasing in over several years. Employers should review their policies and practices and take steps toward compliance.

Pay Transparency in Job Postings

Virginia requires disclosure of wage or salary ranges in all job postings, both internal and external, under HB 636. The listed compensation range must be set in good faith and reflect actual pay scales or budgeted amounts, rather than speculative or hypothetical figures. Enforcement includes civil penalties capped at $5,000, private actions, but no collective actions, statutory damages, or attorney’s fees. The statute allows a 15-day cure period for posting violations.

Employer considerations:

• Document the methodology for determining posted compensation ranges and aligning compensation philosophy with public-facing pay disclosures 
• Update all job posting templates and prepare recruiters to discuss compensation transparently and lawfully

Salary History Ban

The new ban prohibits employers from asking about wage or salary history in hiring decisions. There is a limited exception if salary history is voluntarily disclosed, but it may be used only in higher wage or salary negotiations.

Employer considerations:

• Remove salary history questions from applications 
• Revise interview guides and recruiter scripts
• Retrain recruiters and hiring managers 
• Ensure compensation decisions focus on market and role-based factors

Non-Compete Restrictions

Non-compete agreements are void if severance benefits or other monetary payment are not provided upon termination without cause, and the severance requirement must be disclosed at the time the agreement is signed. The statute (SB 170) provides an exception for termination for cause. The statute is silent as to what amount of severance is sufficient but arguably the amount must constitute reasonable consideration under judicial scrutiny.

The rule does not apply to agreements entered before July 1, 2026, unless the agreements are amended or renewed after that date.

Virginia continues to prohibit non-competes for low-wage earners earning less than $78,000 annually, or an amount set annually by regulation, and all non-exempt employees. Beginning on July 1, 2026, any new or amended non-compete agreements with individuals licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work, regardless of role, will be prohibited. Violations or threats to enforce an unlawful provision may carry a $10,000 penalty. Employees may pursue private legal actions. It is also important to remember there is recent caselaw finding non-solicitation of employees or coworkers to be a non-compete provision.

Healthcare Non-Compete Ban

Non-compete agreements are prohibited for healthcare employees licensed or certified by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology, and Social Work. This prohibition applies regardless of whether the professional maintains a clinical practice and is intended to protect patient access and workforce mobility. Nondisclosure agreements and practice owner covenants are still permitted. In addition, departing professionals may inform patients of their new location and patients may be informed of their right to choose their provider.

Healthcare employer considerations:

• Revise talent retention strategies, 
• Discontinue reliance on non-competes to protect patient relationships
• Review existing agreements and HR and legal practices accordingly

Virginia Human Rights Act Expansion

The revised Virginia Human Rights Act (VHRA) applies to employers with at least five employees (SB 637), eliminating the small business exception and significantly expanding coverage. Employees have up to two years (up from 300 days) to file claims under the VHRA.

Effective July 1, 2026, health insurance must provide coverage for menopause and perimenopause symptoms in policies issued on or after Jan. 1, 2027. This requirement does not apply to self-insured plans.

Employer considerations:

• Update anti-discrimination and anti-harassment policies 
• Conduct training
• Review internal complaint procedures 
• Evaluate documentation and investigation practices

Paid Sick Leave

Virginia has enacted statewide paid sick leave requirements (SB 199) applying to employers with at least 50 employees beginning July 1, 2027; then to employers with at least 25 employees beginning July 1, 2028; and, finally, to all employers with one to 24 employees beginning July 1, 2029. Employees accrue one hour of paid sick leave for every 30 hours worked, up to 40 hours annually. Accrued, unused paid sick leave must carry over to following year, but employers need not allow accrual or usage of more than 40 hours in a year. Paid sick leave may be used for the employee’s own illness or health needs, to care for a family member with illness or health needs, and to access safety-related services related to domestic violence or sexual assault. Family member is defined broadly. The commissioner of labor and industry is to issue rules by July 1, 2027.

Employer considerations:

• Plan early for the phased rollout
• Integrate sick leave administration into existing systems 
• Evaluate whether current paid time off meets or exceeds the statutory requirements so they can qualify to seek and obtain Virginia Employment Commission (VEC) approval for exemption

For more information about the expanded paid sick leave requirements, see Virginia Employers Brace for Expanded Paid Sick Leave Requirements.

Paid Family and Medical Leave

Virginia’s paid family and medical leave program (SB 2/HB 1207) provides up to 12 weeks of paid leave, with benefits of up to 80% of weekly wages capped at 100% of the state weekly wage. Qualifying reasons include birth or placement of a child, the employee’s serious health condition, a covered family member’s serious health condition, caring for a covered service member, qualifying exigencies arising out of a family member’s active duty, and safety services or leave related to domestic violence or sexual assault. There is a 120-day employment prerequisite for job restoration, and retaliation is prohibited. Employees using intermittent leave must make reasonable efforts to schedule to avoid undue disruption to operations. Safety services leave is capped at four weeks.

The program will be funded by payroll tax contributions from employers and employees and administered by the VEC. Employers maintaining their own paid family and medical leave plans may submit them to the VEC for approval if the plans are at least as generous as the state plan.

The program is likely to create administrative complexity, especially with intermittent leave.

Employer considerations:

• Budget for payroll contributions
• Update leave policies
• Provide required notices to employees 
• Prepare employer-sponsored plans for VEC approval where applicable

Minimum Wage Increases

Virginia’s $12.77 hourly minimum wage is scheduled to increase to $13.75 on Jan. 1, 2027, and to $15 on Jan. 1, 2028. Beginning in 2029, future increases will be indexed to inflation.

Employer considerations:

• Wage compression
• Pressure on existing compensation structures
• Morale and retention concerns
• Increased labor costs, especially in labor-intensive industries 
• Plan integration of these increases into long-term financial planning
• Evaluate pay bands and internal equity
• Proactively manage compensation communications

Expanded Wage Enforcement

Virginia’s expanded wage and hour enforcement framework consolidates remedies into a single structure and permits collective actions. It added a 14-day safe harbor to allow employers to cure wage violations after notice, possibly preventing an award of additional damages or penalties to complainants. Moreover, the definition of wages explicitly includes bonuses, commissions, and incentives — increasing the likelihood compensation disputes once treated as contract issues may be statutory wage claims. Employees may bring lawsuits for wage violations subject to a three-year statute of limitations, with liquidated damages of two times unpaid wages; three times unpaid wages for knowing violations; and mandatory attorney’s fees. Employers must also retain employee paystubs or online accounting records for at least three years after work is performed.

Employer considerations:

• Prepare for compliance
• Determine whether to conduct wage audits
• Review pay policies
• Conduct training for managers and payroll personnel

General Contractor and Subcontractor Liability

For contracts entered on or after July 1, 2026, general contractors and subcontractors are jointly and severally liable for all wages owed to a subcontractor’s employees under the Virginia Wage Payment Act, the Virginia Minimum Wage Act, and the Fair Labor Standards Act. A general contractor is deemed the employer of subcontractor employees for wage law purposes, and employees may pursue the general contractor for the full amount of unpaid wages regardless of fault or direct involvement. Indemnification rights may continue between contracting parties, but such provisions do not prevent direct liability to workers. In addition, for worker misclassification, workers are presumed to be employees unless they satisfy strict criteria under the IRS contractor test.

Volunteer Emergency Responders

Volunteer emergency responders are a new protected class (SB 100). Employers may not take adverse action when employees miss work because of volunteer emergency responder duties, subject to a one-hour notice requirement before the shift and an incident report after the event. Missed time is unpaid, although employees may use available paid leave. There is an exception for designated “essential employees.”

Public Employer Coverage Expansion

The General Assembly could expand almost all private sector employment protections to the Commonwealth, localities, and school boards if HB 670 is reenacted in 2027.

Healthcare-Related Workplace Changes

Upcoming changes include required unconscious bias training for medical professionals and removal of practice agreement requirements for physician assistants with at least three years of experience, as well as increased workplace violence reporting requirements for hospitals, and a ban on firearms, large knives, and other weapons into hospitals providing mental health, developmental, and emergency medical services.

Domestic Workers

Overtime is required for domestic workers (SB 28).

Child Labor

Child labor protections have been expanded for individuals under 18 in hazardous roles, and individuals at least 16 years old may participate in certain apprenticeship or work-based learning programs related to culinary arts or information technology under specified circumstances.

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Virginia’s 2026 employment law changes effective July 1 represent a major change to workplace law in the Commonwealth. Employers should take swift, proactive measures to ensure compliance and reduce litigation risks.

Please contact a Jackson Lewis attorney with any questions about these and other workplace developments.