The critical legislative battle continues unfolding in the Virginia General Assembly, as lawmakers move to close a legal loophole that has left the Commonwealth’s vast sales force vulnerable to wage theft.
House Bill 238, introduced during the 2026 legislative session, has officially advanced through the House of Delegates with a 64-35 vote and is now headed to the Senate Committee on Commerce and Labor.
The urgency follows a December 30, 2025, ruling by the Virginia Supreme Court in Groundworks Operations, LLC v. Campbell. In that decision, the Court held that sales commissions do not qualify as wages or salaries under current state law because the statute fails to name them explicitly. This interpretation effectively stripped salespeople of the right to pursue liquidated damages, triple penalties, and attorney fees, which are protections that remain standard for hourly and salaried workers.
Restoring Sales Commissions to the Wage Law
If enacted, House Bill 238 would redefine wages to include all remuneration owed to an employee, specifically naming commissions, bonuses, and severance payments. This reclassification is more than a semantic change; it triggers a suite of powerful legal safeguards, including employer liability for double the amount owed in liquidated damages. In cases of knowing non-payment, courts may award triple damages plus reasonable attorney fees.
The Retroactivity Crisis: A “Dead Zone” for Earnings
While H.B. 238 offers a path forward, sales professionals may be left with a “dead zone” for sales commissions earned today. As currently drafted, the bill lacks a retroactivity clause. Without this provision, the new protections would likely only apply to commissions earned after the law takes effect, potentially on July 1, 2026.
This leaves sales professionals exposed to wage theft. Salespeople closing deals today may find themselves unable to access statutory remedies for these specific earnings if their employers withhold payment before the law is officially on the books.
A Call for Legislative Action
The window to amend the bill to include retroactive protections is closing as it moves through the Senate. We encourage salespeople to use the General Assembly’s “Who’s My Legislator?” tool to contact their representatives. The push for an amendment aims to ensure that no worker is penalized by the timing of a court decision and that all hard-earned compensation, past and present, receives the full weight of Virginia law.
This is a pivotal moment for the Virginia sales force, and active advocacy is necessary to finish the job. Whether through email, phone calls, or signing up to provide testimony, your voice is needed to ensure that no worker is left behind by a temporary legal technicality and that all sales compensation receives the full protection of the law.
The employment attorneys at Potomac Legal Group are available to address questions about your compensation plan and enforcement of commissions payments.
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