Several new wage and workplace protections for employees have taken effect this month in Virginia.
The new 2026 legislative package introduces pay transparency requirements, limits the enforceability of certain non-compete agreements, extends anti-discrimination protections to employees of smaller employers, strengthens remedies for wage theft and worker misclassification, and establishes new safeguards for volunteer emergency responders.
Pay Transparency and Salary History Restrictions
Beginning July 1, Virginia Senate Bill 215 and House Bill 636 prohibit employers from requesting an applicant’s salary history or relying on prior compensation when making hiring decisions or determining pay. Applicants may voluntarily disclose prior compensation after receiving an offer of employment; however, employers may not require that information or take adverse action against an applicant for choosing not to provide it.
The new laws also require employers to include a good-faith wage or salary range in all public and internal job postings, including positions available through promotion or transfer. These requirements are intended to increase pay transparency throughout the hiring process and help ensure compensation decisions are based on the position being filled rather than an applicant’s previous earnings.
Employers that fail to include a required salary range have 15 business days to correct the posting after receiving notice of a violation. If the posting is not corrected within that period, the employer may be subject to civil penalties, and affected applicants may have legal remedies available.
Limits on Non-Compete Agreements
Senate Bill 170 limits the enforceability of non-compete agreements entered into on or after July 1, 2026, when an employee is terminated without cause. Under the law, those agreements are generally unenforceable if the employer ends the employment relationship without cause.
The legislation provides one exception. A non-compete agreement may remain enforceable if the employer provides contractually guaranteed severance benefits during the restricted period. To qualify for the exception, the severance arrangement must be clearly disclosed and agreed to in writing when the non-compete agreement is executed.
The statute does not define “cause” or establish a minimum amount of severance required for the exception to apply. As a result, employers should carefully review the terms of their non-compete agreements, and employees subject to those agreements should understand how these provisions may affect their enforceability if employment ends.
Non-Compete Restrictions for Healthcare Professionals
Senate Bill 128 further restricts the use of non-compete agreements by prohibiting employers from entering into, enforcing, or threatening to enforce non-compete agreements with licensed healthcare professionals. The law applies to physicians, nurses, pharmacists, counselors, psychologists, social workers, and other professionals licensed, registered, or certified by the Virginia Boards of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work. It applies to non-compete agreements executed, renewed, or amended on or after July 1.
The legislation does not prohibit employers from using confidentiality agreements or certain other restrictive provisions that remain permissible under Virginia law. These include narrowly tailored patient or client non-solicitation provisions, reasonable non-compete agreements entered into as part of the sale of a business, and certain recruitment and training-related repayment provisions expressly authorized by the statute. Healthcare professionals also remain free to notify existing patients of the location of a new practice following a change in employment.
The law also establishes a private right of action for healthcare professionals subject to a prohibited non-compete agreement. An individual may bring a civil action within two years of the alleged violation, and a court may void the agreement and award relief authorized by the statute, including lost compensation, damages, and reasonable attorney’s fees and costs.
Discrimination Protections for Smaller Workplaces
Senate Bill 637 and House Bill 925 reduce the Virginia Human Rights Act’s employer threshold from 15 employees to five. As a result, many small businesses that were previously exempt from the Act are now covered by Virginia’s anti-discrimination requirements. The legislation also extends the deadline for filing a discrimination complaint with the Office of Civil Rights from 300 days to two years after the alleged discriminatory act.
The lower employee threshold and longer filing period provide additional protections for employees of smaller workplaces while giving individuals more time to evaluate potential claims and consult legal counsel before initiating the administrative complaint process.
Enhanced Wage Payment and Recordkeeping Requirements
House Bill 238 strengthens Virginia’s wage payment and enforcement laws by broadening the definition of protected wages and increasing the remedies available for certain wage violations.
Employers must maintain physical or electronic copies of employee paystubs and payroll records for at least three years. The legislation further broadens the definition of wages to include bonuses, sales commissions, tips, and piece-rate compensation, ensuring those forms of compensation receive the same protections under Virginia law as other earned wages.
The law also increases the potential liability for employers that unlawfully withhold wages. Employers may be liable for double the amount of unpaid wages, in addition to reasonable attorney’s fees. If a court determines the violation was known, the available remedy may increase to treble damages.
For certain wage violations in the construction industry, general contractors may also be held jointly liable for unpaid wages owed by their subcontractors, providing affected workers with an additional avenue to recover unpaid compensation.
Protections for Volunteer Emergency Responders
Senate Bill 100 establishes new employment protections for volunteer emergency responders who are absent from work while responding to a declared state of emergency. Under the law, employers may not discharge, discipline, or otherwise discriminate against volunteer firefighters, emergency medical services technicians, or rescue squad members because of an absence related to qualifying emergency response activities.
The legislation does not require employers to pay individuals for time spent responding to an emergency. However, covered employees may use any accrued paid leave to cover the absence, and employers must permit its use upon request. To qualify for these protections, the employee must provide certification of service from the volunteer emergency response organization upon returning to work.
Looking Ahead: Future Virginia Employment Law Changes
Several additional employment law changes are scheduled to take effect over the next several years, continuing Virginia’s recent expansion of workplace protections.
House Bill 1 and Senate Bill 1 will increase the Commonwealth’s minimum wage to $13.75 per hour beginning January 1, 2027, and to $15.00 per hour beginning January 1, 2028. Senate Bill 199 will establish a statewide paid sick leave requirement beginning July 1, 2027, for employers with 50 or more employees. The requirement will expand to all employers by 2029 and allows eligible employees to accrue one hour of paid sick leave for every 30 hours worked.
Virginia’s Paid Family and Medical Leave program is also scheduled to take effect in April 2028. The program will provide eligible employees with paid, job-protected leave for qualifying family and medical reasons.
Understanding Your Rights Under the New Laws
The new Virginia employment legislation creates obligations for many Virginia employers and broadens employee protections. Employees who believe their rights under these laws have been violated should promptly review their legal options, as some claims are subject to specific procedural requirements and filing deadlines.
If you have questions about how these laws may affect your employment or your business, contact the employment attorneys at Potomac Legal Group to discuss your rights under Virginia law.
Leave a Reply