Virginia employers face a significant wave of employment law changes in 2026 and beyond, with new requirements affecting compensation practices, restrictive covenants, workplace safety, leave obligations, and wage-and-hour enforcement.  These developments will require employers to revisit existing agreements, policies, and compliance procedures.  

Below is a summary of the key new laws, organized by effective date.

Effective July 1, 2026

Expansion of Non‑Compete Restrictions

Virginia enacted two labor and employment bills this legislative session further restricting non‑compete agreements.  Virginia first limited non‑compete agreements in 2020, when it enacted § 40.1‑28.7:8 to prohibit employers from entering into non‑competes with “low‑wage” employees—defined in 2026 as those earning less than $1,507.01 per week.  In 2025, it expanded the definition of “low‑wage” employees to include non‑exempt employees.

1. Non‑Competes May Be Unenforceable Against Employees Fired Without Cause

Virginia enacted its first non‑compete restriction this session in Senate Bill 170 (SB170).  SB170 amends § 40.1‑28.7:8, making non‑competes unenforceable against employees who are discharged without cause, unless the employer provides “severance benefits or other monetary payment,” which must be “disclosed upon execution” of the agreement.  The law does not define  “cause,” “severance benefits,” or “other monetary payment.”  Nor does it require that the employee be compensated for the full duration of the post-employment restricted period.  SB170 does not alter the enforcement of non‑competes against employees fired for “cause” or those that resign voluntarily, and it only affects non‑competes entered into, amended, or renewed after July 1, 2026. 

2. Non‑Compete Ban for Health Care Professionals

Virginia enacted its second non-compete restriction this session in Senate Bill 128/House Bill 627 (SB128).  SB128 amends § 40.1‑28.7:8 to prohibit employers from entering into non‑compete agreements with “health care professionals,” defined as “any person licensed, registered, or certified by the Board of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.” 

The law contains several carveouts.  First, it allows health care professionals to execute restrictive covenants in connection with the sale of a business.  Second, it permits employers to seek repayment of certain “recruitment‑related costs” when the departing individual has been employed for fewer than five years.  Third, it permits employers to use “narrowly construed” client non‑solicitation agreements with health care professionals.  However, the law does not prevent departing health care professionals from telling patients they will continue practicing elsewhere, informing patients of their right to choose a provider, or providing contact information for their new practice.  This law only affects non‑competes entered into or renewed after July 1, 2026.

Pay Transparency

Senate Bill 215/House Bill 636 (SB215) adds § 40.1‑28.7:12 to the Code of Virginia.  This law prohibits employers from (i) seeking or relying on a prospective employee’s wage or salary history, (ii) relying on salary history in hiring or compensation decisions; and (iii) retaliating against  candidates for declining to provide salary history.  Furthermore, employers must disclose the wage, salary, or pay range in their public and internal job postings, and posted wages must be made in “good faith.”  The law creates private rights of action for aggrieved employees, who may recover actual damages and any other relief the court deems appropriate.  However, employers are provided with a 15‑business‑day cure period for noncompliant postings and failing to set wage and salary range in “good faith.”

Expansion of Virginia Human Rights Act

The Commonwealth has amended the Virginia Humans Rights Act through Senate Bill (SB 637) and House Bill 925 (HB 925) in three ways this legislative session.  First, under both bills, the deadline for employees to file a discrimination complaint with the Office of Civil Rights is extended from 300 days to two years.  Second, SB 637 expands the definition of “employer” under § 2.2‑3905, so that Act’s nondiscrimination provisions now apply to employers with five or more employees (previously it was 15 or more employees).  Third, HB 925 expands the reach of § 2.2‑3907 and now permits aggrieved persons the right to file a civil action if 180 days have passed since a complaint was filed in either the Office of Civil Rights or a local human rights commission organized pursuant to § 15.2-965 (previously this right was only accorded to complaints filed in the Office).

Virginia Wage and Hour Amendments

House Bill 238 (HB238) is an omnibus bill that amends various provisions of Virginia’s wage and hour statutes.

One of the most significant changes is the standardization of damages and statutes of limitations, which previously differed slightly depending on the nature of the claim.  Claims for minimum wage violations, overtime violations, and misclassification of independent contractors now provide for identical damages under § 40.1‑29, are subject to a three‑year statute of limitations, and may be pursued through collective actions.The bill also made numerous changes to the wage collection statute (§ 40.1‑29), including:

1. Defining “employer” to match the FLSA’s definition—i.e., to include “any person acting directly or indirectly in the interest of an employer in relation to an employee.”  In doing so, the new definition may create individual liability where it previously did not exist.
2. Expanding the definition of “wages” to include “any remuneration an employer owes to an employee,” including hourly wages, salaries, overtime wages, commissions, tips, and bonuses.
3. Requiring employers to retain paystubs or online pay records for at least three years after the underlying work is performed.
4. Authorizing the Attorney General to bring actions on behalf of aggrieved employees.
5. Establishing a “good faith” defense under which no “additional damages” or “additional penalties” may be awarded if the employer shows “good faith and that the employer had reasonable grounds for believing” there was no violation.  However, an employer may invoke this defense only if it “cures the violation within 14 days of being notified of the violation by paying all wages unlawfully withheld.”

Additionally, HB 238 made substantive changes to § 11‑4.6, which governs required provisions in construction contracts.  Specifically, the bill amends § 11‑4.6 to provide that general contractors and subcontractors are jointly and severally liable for violations of §§ 40.1‑28.7:7 and 40.1‑29, as well as the Virginia Minimum Wage Act and the Fair Labor Standards Act.  This provision applies only to construction contracts entered into after July 1, 2026.

Volunteer Emergency Responders

Senate Bill 100 (SB100) adds § 40.1‑27.5 to the Code of Virginia.  This law prohibits employers from retaliating against employees who are absent from work because they are voluntary emergency responders actively responding to an emergency.  Employers are not required to pay employees for missed work time; however, employees may use paid sick leave or vacation time for their voluntary service.  The law does not apply to employees who are deemed “essential” by statute or contract.  Employees may bring civil actions against their employers for violations of this section.

Heat Illness Protections

Senate Bill 288/House Bill 1092 (SB288) adds § 40.1‑44.2 to the Code of Virginia.  This law requires the Safety and Health Codes Board to adopt regulations protecting workers from heat illness during both indoor and outdoor work.  Those regulations must address access to water, shade and climate‑controlled environments, rest and acclimatization periods, training, and emergency response procedures.  It includes exceptions for heat exposures occurring during emergency response services and lasting less than 15 minutes.

Effective January 1, 2027

Minimum Wage Increases to $15/hour

Senate Bill 1/House Bill 1 (SB1) increases the minimum wage in stages to $15.00 per hour by January 1, 2028.  Virginia’s minimum wage is now codified at $12.77 per hour.  This will increase to $13.75 per hour on January 1, 2027, followed by $15.00 per hour on January 1, 2028.  Thereafter, annual increases will track the consumer price index.

Effective July 1, 2027

Paid Sick Leave

Effective July 1, 2027, Senate Bill 199/House Bill 5 (HB5) expands Virginia’s paid sick leave laws to cover all employees under § 40.1‑33.6:1 et seq.  Previously, paid sick leave was only available to home health workers.  In addition to providing how employers must provide paid sick leave, the expanded law specifies how sick leave may be used and provides numerous enforcement mechanisms.

Under the expanded law:

1. All employees are entitled to one hour of paid sick leave for every 30 hours worked, subject to a 40‑hour annual carryover cap. Employers may provide more generous paid sick leave policies. 
2. Paid sick leave may be used for an employee’s mental or physical illness, or that of a family member. “Family member” is defined broadly and includes immediate family, domestic partners, stepfamily, grand-parents and -children, individuals for whom the employee is responsible, and individuals with family‑like relationships.
3. Paid sick leave is taken in hourly increments, unless the employer allows smaller increments to be used.
4. Employees must provide “good faith” notice of their need for paid sick leave when such leave is “foreseeable.” However, if employers require advanced notice, they must have a written policy stating how notice should be provided.
5. Employers need not pay out accrued sick leave upon termination or separation.
6. If employees are rehired within 12 months of separation, their previously accrued sick leave must be reinstated.

The law authorizes enforcement by employees, as well as the Commissioner of Labor and Attorney General.  The Commissioner may bring administrative actions, refer matters to the Attorney General for civil action, and impose civil penalties of up to $150 for a first violation, $300 for a second violation, and $500 for each subsequent violation.  Employees bringing private actions may recover double the amount of any unpaid sick leave and actual damages suffered.

Beginning April 1, 2028

Paid Family Leave

Senate Bill 2/House Bill 1207 (SB2) creates Virginia’s first paid family leave law, § 60.2‑800 et seq.  The law requires the Virginia Employment Commission to establish a paid family and medical leave insurance program by January 1, 2028, accept contributions to the program by April 1, 2028, and begin paying benefits by December 1, 2028.

“Covered individuals” who may receive paid family leave benefits are individuals, other than employees of the Commonwealth, who are authorized to work in the United States, meet any administrative requirements outlined in this chapter and in regulations, submit an application, and meet certain monetary eligibility criteria.  Specifically, an individual must either satisfy the monetary requirements in § 60.2‑612(A)(1), which in 2026 includes earning at least $3,000 in the two highest‑earning quarters of their base period, defined by statute, or be self‑employed and elect coverage.

Benefits may be paid to covered individuals who apply (and provide supporting certification) for leave to:

1. Care for a new child during the first year after birth, adoption, or placement;
2. Their own serious medical condition or that of a close family member;
3. Care for a covered military family member;
4. Respond to a qualifying exigency arising from their own or a family member’s order to active duty; or
5. Obtain safety services for themselves or a family member.

Covered individuals may receive up to 12 weeks of benefits per year, payable on the first calendar day of the benefit year for which they are eligible.  Weekly benefits are generally 80% of the individual’s average weekly wages, as defined by statute.  The weekly benefit must be at least $100 per week, or the individual’s full weekly wages, whichever is less.  Payments are capped at 100% of the state average weekly net earnings—defined in 2026 as $1,507.01 per week.

The program is funded through premiums beginning April 1, 2028.  Specific employer contributions will be announced by October 1, 2027, and annually thereafter.  The law defines employer deductions as follows (however, deductions may not cause wages to fall below the minimum wage):

1. More than 10 employees. The employer must deduct 50% of the contribution from employee wages (unless the employee agrees to a lower amount), and must remit the full contribution to the Commission.
2. 10 or fewer employees.  The employer must deduct 50% of the contribution from employee wages, but must remit only the deducted amount to the Commission.