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Virginia Employer HR Compliance Guide

Virginia has undergone a significant regulatory shift following the 2026 legislative session, enacting sweeping reforms covering pay transparency, paid family and medical leave, noncompete limitations, and a phased minimum wage increase to $15.00. Historically a moderate employment law state, Virginia now ranks among the more employee-protective jurisdictions in the country. Employers operating in Virginia face urgent compliance deadlines, particularly around July 1, 2026 requirements.

Key Facts — Virginia

Minimum Wage: Current rate is $12.77/hour effective January 1, 2026. Scheduled increases: $13.75 on January 1, 2027, and $15.00 on January 1, 2028. Beginning in 2029, the rate adjusts annually based on CPI. Recent legislation also eliminated minimum wage exemptions for farm laborers and certain temporary foreign workers. No significant local variations currently in effect.
Pay Transparency: Effective July 1, 2026, Virginia law (Va. Code § 40.1-28.7:12, HB 636/SB 215) requires employers to include a good-faith salary or wage range in all job postings—both external and internal (including promotions and transfers). Employers are prohibited from asking about or relying on an applicant's compensation history in hiring or pay decisions; a limited exception applies if the applicant voluntarily discloses salary history after receiving an initial offer, and only to support a higher salary. The law creates a private right of action, with limited cure provisions. Excessively broad posted ranges may be challenged as failing the good-faith standard.
Paid Family & Medical Leave: Virginia enacted a new state Paid Family and Medical Leave program during the 2026 legislative session. Full program details, benefit rates, duration, employer contribution rates, and coverage thresholds are pending regulatory guidance, but employers should begin modeling potential payroll costs and reviewing how the new program will interact with existing employer-provided leave and FMLA obligations.

Priority Compliance Actions

1Audit all job postings (internal and external) and update templates to include good-faith salary or wage ranges before July 1, 2026.
2Remove salary history questions from job applications, interview guides, and HR intake forms, and train hiring managers on the new restrictions.
3Review and revise noncompete agreements, restrictive covenants, and severance provisions to comply with Virginia's July 1, 2026 noncompete reform, consulting employment counsel before executing new agreements or terminating employees.
4Update payroll systems to reflect the minimum wage increase to $12.77 effective January 1, 2026, and build in scheduled increases to $13.75 (2027) and $15.00 (2028).
5Monitor forthcoming regulatory guidance on Virginia's new PFML program and paid sick leave mandate, and model how these programs interact with existing employer-provided leave benefits.

Leave Laws

Federal FMLA applies to Virginia employers with 50 or more employees. Virginia enacted a paid sick leave mandate as part of its 2026 legislative session; specific accrual rates and employer coverage thresholds are subject to forthcoming regulatory guidance. The new state PFML program (effective date pending) will layer on top of existing leave obligations. Employers should audit current leave policies to ensure alignment with FMLA, the new PFML program, and any paid sick leave requirements.

Wage & Hour

Virginia follows federal FLSA overtime rules (1.5x for hours over 40/week); there is no state-specific daily overtime requirement. Virginia law does not provide a tip credit separate from federal rules. Final paycheck timing follows Virginia's regular pay schedule requirements—employers must pay separated employees on the next regular payday. Recent legislation (HB 238) strengthens wage-and-hour enforcement by expanding available remedies for violations.

Worker Classification

Virginia is an at-will employment state. Independent contractor classification is generally assessed under the IRS/common law right-to-control test, though misclassification enforcement has increased. Non-compete enforceability underwent significant reform effective July 1, 2026: new restrictions limit the use of noncompetes, require employers to provide severance in certain termination scenarios to enforce agreements, and health care professionals' noncompete clauses are banned in new agreements. Employers should audit all existing restrictive covenants before entering into or enforcing agreements.

Hiring & Onboarding

Virginia does not have a statewide ban-the-box law for private employers, though some localities may have restrictions. Effective July 1, 2026, employers are prohibited from requesting salary history on applications or during interviews (HB 636/SB 215). Standard background check rules apply; employers should follow FCRA and any applicable EEOC guidance on criminal history use. New hire reporting must be submitted to the Virginia New Hire Reporting Center within 20 days of hire.

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