Virginia’s 2026 General Assembly produced one of the most consequential business law packages in years — and most of it takes effect on July 1.
Why it matters: More than 60 bills tracked by the Virginia Retail Federation were signed into law. For Virginia-based businesses, the changes concentrate in four areas: employment and wages, restaurant operations, consumer protection and data privacy, and energy and housing.
The big picture: This is the first session under Governor Spanberger and Democratic majorities in both chambers, and the volume reflects it. Several changes — including a major expansion of the Virginia Human Rights Act — pull employers as small as five people into compliance obligations that previously applied only to businesses with 15 or more employees.
Employment and wages — the heaviest lift
- Pay transparency (HB 636/SB 215): Wage ranges required in all job postings; pay history questions prohibited
- Minimum wage (HB 1/SB 1): Codifies the current $12.77 rate, with steps to $13.75 on January 1, 2027 and $15.00 on January 1, 2028
- Paid sick leave (HB 5/SB 199): Statewide accrual mandate phased in by employer size — 50+ employees on July 1, 2027; 25+ employees on January 1, 2028; all employers by January 1, 2029
- Paid family and medical leave (HB 1207/SB 2): Program established, with premium collection and benefits beginning April 1, 2028
- Non-compete severance rule (SB 170): Non-competes unenforceable against employees discharged without cause unless severance was disclosed at signing
- Heat illness prevention (HB 1092/SB 288): New Safety and Health Codes Board regulations for indoor and outdoor work
- Wage payment liability (HB 238): Expanded civil actions, with triple damages for knowing violations
- VHRA expansion (HB 925/SB 637): The Virginia Human Rights Act — the state’s employment discrimination law — now applies to many employers with 5 or more employees (down from 15+). Statute of limitations extended from 300 days to two years.
- State IRA program mandate expanded (HB 176/SB 149): RetirePath Virginia now mandatory for employers with 5+ employees (down from 25); part-time workers included; up to $200 per employee per year penalty for non-compliance.
- Healthcare non-compete ban (SB 128/HB 627): Non-competes prohibited for professionals licensed by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work
- Voluntary emergency responder protections (SB 100): Employer retaliation prohibited against employees absent to serve as voluntary emergency responders during declared emergencies
Restaurants and ABC
- Food-to-beverage ratio reform (HB 975): Tiered relief from the existing 45 percent rule for higher-revenue mixed beverage licensees
- Food allergy notice (HB 373/SB 248) and delivery markers (SB 183): New conspicuous-notice and labeling requirements
- Celiac disease training (HB 380): Required content added to restaurant personnel training materials
- Tobacco and vape permitting moves to ABC (HB 308/SB 620): Phased implementation beginning October 1, 2026
Consumer protection and data privacy
- Gift card offenses (HB 662/SB 444): Theft, forgery, and fraud codified with penalties
- Geolocation data sale ban (SB 338): Controllers prohibited from selling precise geolocation data
- Voice and likeness (HB 581/SB 753): Statutory protections extended to unauthorized use of voice or likeness
- Auto-renewal shipping disclosures (SB 184): Required information on shipping invoices for continuous service offers
- Cosmetics ingredient ban (HB 122): Specific ingredients prohibited in cosmetic products sold in Virginia
- Penny rounding (HB 954): Localities authorized to adopt temporary rounding procedures for cash transactions through July 1, 2027
Energy, environment, and housing
- Utility energy efficiency upgrades for low-income residents (HB 2/SB 72)
- Renewable energy buyer changes (HB 369/SB 598)
- Environmental justice planning for larger localities (HB 256/SB 425)
- Affordable housing tools including preservation (HB 4), expedited approval (HB 594), local performance grants (HB 352), and mixed-income housing pilots (HB 196/HB 820)
What’s next: This is the first in an eight-part series running through July 1. Over the next four weeks, we will publish deep dives on the highest-impact changes — starting Thursday with pay transparency, the change that requires action from virtually every Virginia employer.
The bottom line: Even businesses that do not follow the General Assembly closely should treat July 1 as a compliance reset. Most members will need to update at least one document, policy, or process. We will walk you through what to do — and what to flag for your legal counsel — over the next several weeks.
This communication is provided for general informational purposes only and does not constitute legal advice. Statutory citations and effective dates reflect the bills as enacted by the 2026 Virginia General Assembly. Member businesses should consult qualified legal counsel for guidance on specific compliance obligations applicable to their circumstances.