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.
