2025 General Reconvened Session Recap

Apr 4, 2025

Overview

The General Assembly was back in Richmond this week for the 2025 Reconvened Session. This is when the legislators consider the amendments and vetoes sent down by the Governor on bills that he received after the legislature adjourned Sine Die.

Governor Youngkin ultimately signed 599 bills, amended 159 bills and vetoed 157 bills that were communicated to him by the General Assembly. In addition, he sent down over 200 amendments to the budget. It takes a two-thirds majority to overturn a veto in Virginia; therefore, all of the Governor’s vetoes were sustained due to the slim margins in both the House and Senate. While many of the Governor’s amendments to bills were rejected, there were some that the General Assembly accepted. It only takes a simple majority to reject an amendment.

Legislative Action Summary:

Below you will find Governor’s Actions on key bills to the retail industry. In addition, you will see a brief summary of the General Assembly’s action at the Reconvene Session.

Click Here for the full VRF Bill list.
On the full bill list you will notice some bills are highlighted. These bills are either before the Governor again for final action, or have been signed into law and become effective July 1, 2025 (unless otherwise noted).

Summary of the General Assembly’s action at the Reconvened Session:

The Governor’s Actions:

Signed 599 bills
Vetoed 157 bills
Sent back 159 bills with recommended changes— including 205 proposed amendments to the budget bill, House Bill 1600, and eight item vetoes.

The General Assembly Actions:

Did not override any of the Governor’s vetoes, as Democrats hold slim majorities in the House and the Senate and did not have the two-thirds vote needed to override.
Approved only 33 of the Governor’s 205 budget amendments, and those were largely technical or related to removing budget provisions that were tied to bills that the Governor had vetoed.
Rejected amendments proposed by the Governor to many of the 159 bills the Governor attempted to amend.

Governor’s Actions on Key Bills

Signed:

HB 1703 – ABC Tied House Exceptions
HB 1941 – Invasive Plant Species
- Delayed effective date (January 1, 2027)
HB 2033 – ABC Human Trafficking Training
HB 2058 – ABC Delivery
HB 2124 – Synthetic Digital Content
HB 2370 – Cigarette delivery sales
SB 754 – Consumer Protection Act – reproductive or sexual health info
SB 811 – ABC Delivery
SB 834 – ABC Tied House Exceptions
SB 868 – ABC – prohibition on delivery to consumer of original bottle of alcoholic beverage (mixed beverage licensees)
SB 1053 – Synthetic Digital Content
SB 1057 – Unemployment insurance, weekly benefit amount increasing threshold for deduction of wages payable
SB 1067 – Cigarette delivery sales
SB 1166 – Invasive Plant Species
- Delayed effective date (January 1, 2027)
SB 1218 – Covenants not to compete prohibited for low wage employees
SB 1376 – Consumer Protection Act – Food Labeling

Vetoed:

HB 1802 – Powers and Duties of Department of Small Business and Supplier Diversity
- Veto Sustained
HB 1919 – Workplace Violence
- Veto sustained
HB 1921 – Employment Paid Sick Leave
- Veto Sustained
HB 1922 – SWaM Procurement
- Veto Sustained
HB 1928 – Minimum Wage
- Veto sustained
HB 1994 – ABC – requirements for restaurant retail licensees
- Veto Sustained
HB 2094 – AI
- Veto Sustained
HB 2098 – Labor and employment provisions –application of law, protection of employees, definition of employer
- Veto Sustained
HB 2485 – Retail Market for Cannabis
- Veto Sustained
HB 2531 – Paid Leave Insurance
- Veto Sustained
HB 2561 – Employee protections – misclassification of workers
- Veto Sustained
SB 824 – SCC Powers and Duties
- Veto Sustained
SB 970 – Retail Market for Cannabis
- Veto Sustained
SB 1052 – VA Human Right Act – Definition of “Employer”
- Veto Sustained
SB 1132 – Prohibiting employer seeking wage or salary history
- Veto Sustained
SB 1307 – Sales Tax increase for school construction
- Veto Sustained
SB 1350 – Food Allergy Awareness notice required for restaurants
- Veto Sustained

Amended:

HB 1600 – Budget Bill
- Over 200 Budget Amendments Issued by the Governor.
- Only 33 of those amendments were approved by both the House and the Senate.
HB 1642 – AI based tool – definition of use of tool
- Governor’s recommendation adopted unanimously by both House and Senate
HB 1730 – Employer Liability to vulnerable victims
- The Governor sent down a Substitute to the enrolled version of HB 1730. This substitute was rejected by the House, therefore the enrolled version is back before the Governor. He now has 30 days to veto or sign the enrolled bill.
HB 1766 – Unemployment Compensation – weekly benefit amounts and duration of payment
- Governor’s recommendation adopted.
HB 1844 – Labeling requirements – Baby Food Protection Act
- Governor’s recommendation was passed by for the day, therefore the enrolled version is back before the Governor. He now has 30 days to veto or sign the enrolled bill.
HB 2515 – Junk Fees
- Governor’s Substitute was rejected, therefore the enrolled version is back before the Governor. He now has 30 days to veto or sign the enrolled bill.
SB 854 – Consumer Data Protection – Social Media Platforms for Minors
- Governor’s recommendation was passed by for the day, therefore the enrolled version is back before the Governor. He now has 30 days to sign or veto the enrolled bill.
SB 894 – Employer Liability to vulnerable victims
- The Governor sent down a Substitute to the enrolled version of SB 894. This substitute was rejected by the Senate by a vote of 4 to 36, therefore the enrolled version is back before the Governor. He now has 30 days to veto or sign the enrolled bill.
SB 1056 – Unemployment Compensation – weekly benefit amounts and duration of payment
- Governor’s recommendation was adopted.
SB 1212 – Junk Fees
- Governor’s substitute was rejected, therefore the enrolled version is back before the Governor. He now has 30 days to veto or sign the enrolled bill.
SB 1371 – Gift Certificates – prohibits imposition of a dormancy fee
- Governor’s recommendation was adopted

Budget:

Governor Youngkin sent down over 200 budget amendments for the General Assembly to consider at the Reconvened Session. All amendments can be found here.
One of great interest to VRF is:

Amendment 143: Delay polystyrene ban effective dates

Item 362

Natural and Historic Resources
Department of Environmental Quality			Language

Language:

Page 451, line 38, strike “2025” and insert “2028”.

Page 451, line 39, strike “2026” and insert “2030”.

Explanation:

(This amendment extends the effective dates to 2028 for larger retail food establishments and 2030 for smaller establishments located in the Commonwealth.)

Along with the vast majority of the Governor’s over 200 budget amendments, this delayed enactment amendment was rejected by the House at Reconvene Session. Therefore the effective date of the ban is effective July 1, 2025 for larger retail food establishments and 2030 for smaller retail food establishments. See § 10.1-1424.3 of the Virginia Code for specifics of this ban.

The Governor now has 30 days to sign or veto the bills that had amendments rejected. The bills with amendments approved are now official and will be effective as of July 1 unless otherwise set forth in the legislation.

Elections

Later this year we will have elections for all 100 seats in the House of Delegates and the three statewide offices in the Executive branch. Currently, Democrats hold a majority at 51-49 in the House. All Democrats are running for re-election while several Republicans have announced they will not seek re-election. These include Danny Marshall, Jed Arnold, Nick Freitas, and Baxter Ennis. There is the expectation that one or two more House Republicans may announce they will not run.

Today is the filing deadline for statewide and House races. Everyone is waiting to see if Lieutenant Governor Sears will have a Republican primary opponent with former Senator Amanda Chase and former Delegate David LaRock trying to gather the required petition signatures to make the ballot for the June 19 primary for Governor. Former U.S. Representative Abigail Spanberger is unopposed as the Democratic nominee for Governor.

Those who have thrown their hat into the ring are:

For Lieutenant Governor: For Attorney General:

State Sen Ghazala Hashmi – D AG Jason Miyares – R

Babur Lateef – D Jay Jones – D

State Sen Aaron Rouse – D Shannon – D

Alex Bastani – D

Levar Stoney – D

Victor Salgado – D
Carl Eggleston – D

John Reid – R

Pat Herrity – R

John Curran – R

Marlow Jones – I

Conclusion

The Virginia Retail Federation team will continue to keep you up-to-date about important actions and news that arise across the Commonwealth. Should you have any questions or concerns, please do not hesitate to reach out.

The Big Picture

Most of these changes take effect July 1, 2026, with additional requirements phasing in through 2029. Across the board, the trend is clear: Virginia is expanding employee protections, broadening enforcement mechanisms, and increasing the financial consequences for employers who don’t keep up.

Here’s what you need to know.

Minimum Wage Increases

Virginia’s minimum wage is on a multi-year upward trajectory:

January 1, 2027: $13.75/hour (up from $12.77)
January 1, 2028: $15.00/hour
2029 and beyond: Adjusted annually by regulation based on a cost-of-living index

The increase applies to whichever is higher — state or federal minimum wage — and affects overtime calculations. For tipped employees, the state minimum wage applies, while tip credits remain tied to the federal minimum wage.

What to do now: Update payroll systems ahead of each increase and review how wage changes flow through to overtime calculations and commission structures.

Pay Transparency & Salary History Ban

Effective July 1, 2026

All job postings — internal and external — must include a salary or wage range set in “good faith.” There is no statutory definition of what range width qualifies, but narrower bands are generally recommended for compliance. Asking candidates about salary history is prohibited. The only exception: if a candidate voluntarily discloses their salary, an employer may use that information solely to offer a higher salary than originally intended — not to anchor compensation downward.

Jackson Lewis recommends treating salary history questions the same way you would treat questions about age, race, or family status: off limits in any interview or application context.

Penalties include civil fines up to $1,000 for a first posting violation and up to $5,000 for subsequent violations, plus a private right of action for aggrieved applicants.

What to do now: Audit every job posting template, remove salary history questions from applications and interview guides, and establish a process for setting and documenting compensation ranges before you post.

Noncompete Restrictions

Effective July 1, 2026 (for new agreements only)

Virginia’s noncompete law tightens further this year. Employers may not enter into noncompete agreements with:

Employees earning less than approximately $72,000–$76,000 annually, or
Employees entitled to overtime pay under the FLSA, or
Healthcare workers holding active professional licenses

For employees who remain eligible for noncompetes, any new agreement must now include either a termination-for-cause provision or a specified severance amount in the event of termination without cause. Neither “cause” nor a minimum severance threshold is defined in the statute — courts will interpret these standards over time.

The penalty for requiring or threatening to enforce an invalid noncompete is $10,000 per violation, even if the mistake was made in good faith.

This law applies only to agreements entered into on or after July 1, 2026. Existing agreements remain governed by prior law.

What to do now: Audit all noncompete agreements before rolling out new ones. Do not present noncompetes to any low-wage or overtime-eligible employee after July 1. For eligible employees, decide now whether you will build in a cause requirement or a severance provision — and specify any severance amount in the agreement itself.

Anti-Discrimination Expansion — Virginia Human Rights Act

One of the most significant changes in the session is the expansion of the Virginia Human Rights Act (VHRA):

Coverage threshold lowered: The VHRA now applies to employers with 5 or more employees (previously 15).
Filing deadline doubled: Employees now have 2 years to file a VHRA claim — up from 300 days.
No damage caps: Unlike federal Title VII claims, VHRA claims carry no cap on damages.
Jury trials in state court: VHRA cases are heard in state court, before Virginia juries, with no damage ceiling.

The practical impact is significant. Jackson Lewis presenters noted that the extended filing window and unlimited damages make VHRA claims far more attractive than federal claims — and expect most employment discrimination matters going forward to be filed under state law rather than federally.

Adding to the urgency: AI-assisted litigation is rising sharply, with a reported 49% increase in pro se filings using AI-generated legal documents. More employees are pursuing claims without attorneys, making it easier and cheaper than ever to initiate a case.

What to do now: Update employee handbooks and anti-discrimination policies to reflect the new 5-employee threshold. Establish a formal complaint reporting process with a named contact — not simply “any manager.” Provide anti-discrimination training to all supervisors; Jackson Lewis recommended EEOC training videos as a baseline.

Paid Sick Leave

Phased rollout beginning July 1, 2027

Virginia will require mandatory paid sick leave for all employees — full-time, part-time, and seasonal — on a phased schedule:

July 1, 2027: Employers with 50 or more employees
January 1, 2028: Employers with 25 or more employees
January 1, 2029: All employers with 1 or more employees

Accrual rate: 1 hour of paid sick leave for every 30 hours worked, capped at 40 hours per year. Employers may choose to front-load 40 hours at the start of the year rather than track accrual. Leave is use-it-or-lose-it within the calendar year.

If you already have a PTO policy, it may satisfy this requirement — but only if at least 40 hours are explicitly designated for sick leave use. Employers may require reasonable notice and documentation, but cannot impose overly rigid restrictions on how leave is used.

One open question from the session: whether paid sick leave will be treated as “wages” subject to mandatory payout at separation. That remains unsettled and will likely be shaped by future court decisions.

What to do now: Even if your compliance deadline isn’t until 2028 or 2029, begin building leave tracking infrastructure now. Review your existing PTO policy language to determine whether it already satisfies the designation requirement.

Paid Family & Medical Leave

Payroll deductions begin April 1, 2028 | Benefits begin December 1, 2028

Virginia is establishing a state-administered paid family and medical leave insurance program, making it the 14th state (plus D.C.) to do so. Key details:

Benefits are paid at 80% of average weekly wages, for up to 12 weeks
Funded through payroll deductions beginning April 1, 2028
Employers may elect to satisfy the requirement through private insurance rather than contributing to the state fund
Covers all qualifying reasons under FMLA (personal health, family care, bonding with a new child), plus military-related leave situations
Administered by the Virginia Employment Commission

Regulations governing premium rates and private insurance requirements are still being developed. The VEC is expected to publish premium rates by October 2027.

What to do now: Alert your payroll and HR teams. Begin evaluating whether the state fund or private insurance will be the better option for your workforce. Plan for system updates and employee communications well ahead of the April 2028 deduction start date.

Heat Illness Prevention

Regulations due by May 1, 2028

Virginia’s Safety & Health Codes Board is required to develop and adopt workplace heat illness prevention regulations covering both indoor and outdoor work environments. Specific requirements — water, shade, rest periods, acclimatization protocols, written prevention plans — will be established through that rulemaking process. In the meantime, federal OSHA’s General Duty Clause applies to heat hazards and is actively enforced.

What to do now: Conduct a heat exposure assessment for your worksites, particularly for outdoor operations or non-climate-controlled indoor environments. Don’t wait for the final regulation to build a basic heat illness prevention protocol.

Key Takeaways for Business Owners

The compliance window is short for several of these changes. A few priorities from the session:

Before July 1, 2026: Revise all job postings to include salary ranges; remove salary history questions from applications and interview processes; review noncompete agreements; and update anti-discrimination policies and complaint reporting procedures.

By January 1, 2027: Update payroll systems for the $13.75 minimum wage increase.

By 2027–2028: Build paid sick leave accrual systems; designate sick leave within any existing PTO policy; prepare payroll systems for the PFML deductions beginning April 2028; and elect a funding method for family leave.

Ongoing: Conduct wage audits that include bonuses, commissions, and tips; train managers on anti-discrimination obligations; document salary decisions and interview discussions; and consult employment counsel when drafting or updating noncompete agreements.

Stay Informed

As these laws take effect and regulations are finalized, we will continue to keep members informed of important updates and developments.

InUnison, Retail Alliance, and Virginia Retail Federation members are welcome to reach out to us directly with questions. If you’re not yet a member and would like access to resources like this — including ongoing legislative guidance — contact Robert Thomas at rthomas@inunison.org to learn more about membership.

This post is provided for general informational purposes and does not constitute legal advice. For guidance specific to your business, consult qualified employment counsel. Jackson Lewis P.C. attorneys are available to assist.