A Snapshot of Virginia’s New Employment Laws From the 2026 Legislative Session

Why It Matters

These changes raise compliance costs and legal exposure for Virginia employers, reshaping hiring, compensation, and benefits strategies across the state’s labor market.

Key Takeaways

• Non‑competes enforceable only with disclosed severance or for cause
• Salary‑history bans impose $1k‑$5k penalties for violations
• Paid family leave contributions begin April 2028; employees get 80% wages
• Minimum wage rises to $12.77 in 2026, $15 by 2028
• VHRA now covers employers with five or more employees

Pulse Analysis

Virginia’s latest labor reforms signal a broader shift toward employee‑centric policies that mirror trends in neighboring states such as Maryland and the District of Columbia. By tying non‑compete enforceability to severance payments, lawmakers aim to curb restrictive covenants that can stifle worker mobility, while the wage‑history prohibition aligns with a national movement to promote pay equity. The new paid family and medical leave insurance, slated for 2028, will require employers to shoulder half of the contribution for larger workforces, creating a predictable payroll tax burden that businesses must budget for well in advance.

The statutory updates also tighten compensation transparency and baseline earnings. Employers must now publish a good‑faith salary range on all job postings, with civil penalties ranging from $1,000 to $5,000 for non‑compliance, compelling HR teams to audit compensation data and adjust recruitment practices. Simultaneously, the incremental minimum‑wage schedule—$12.77 in 2026, $13.75 in 2027, and $15.00 in 2028—raises labor costs for a broad swath of employers, while the overtime extension to domestic service workers expands overtime eligibility beyond traditional classifications, potentially increasing payroll liabilities for households and agencies alike.

For businesses, the expanded Virginia Human Rights Act is a game‑changer, lowering the employee threshold from 15 to five workers and pulling many small firms under state anti‑discrimination mandates. Coupled with pending bills that could broaden sick‑leave rights and add menopause protections, employers must conduct comprehensive policy reviews, update employee handbooks, and invest in training to mitigate litigation risk. Proactive compliance—such as revising non‑compete templates, implementing salary‑range disclosures, and budgeting for upcoming leave contributions—will be essential to navigate the evolving regulatory environment and maintain competitive talent practices.