PUBLICATIONS

The political landscape in Virginia has again shifted. After the 2025 elections, the Democratic Party controls the House of Representatives, the Senate, and the Governor’s Office. During the January to May 2026 General Session, the General Assembly passed several important employment laws. The new laws generally strengthen employee rights and increase penalties and exposure for employers out of compliance.

Every Virginia employer must understand these new employment laws, some of which take effect on July 1, 2026.

The following is a summary of some of the most significant changes:

1. Minimum Wage Increases (HB1/SB1)

AMENDS: Virginia Code § 40.1-28.10

Virginia’s minimum wage is now $12.77 per hour.

The amendment establishes the following schedule for future increases:

• January 1, 2027: $13.75 per hour
• January 1, 2028: $15.00 per hour 
• January 1, 2029, and beyond: the minimum wage will be annually adjusted based on changes in the Consumer Price Index.

For Virginia growers, other legislation also removed the agricultural exception to the Minimum Wage Act.

2. Wage Transparency (HB 636/SB215)

ENACTS: Virginia Code § 40.1-28.7:12

EFFECTIVE: July 1, 2026

The Virginia Wage Transparency Act is an entirely new law. The law accomplishes two main things: (1) prohibits requesting or using salary history from applicants or employees to set rates of pay, and (2) requires disclosing a good faith salary range on all internal and external job postings.

Prohibitions

Employers may not take the following actions:

• Seek wage or salary history of a prospective employee.
• Rely on wage or salary history of a prospective employee in making a hiring decision.
• Rely on wage or salary history of a prospective employee to determine pay.
• Retaliate against an employee/applicant for refusing to provide wage or salary history.

This means that employers generally cannot ask about salary history during the application or interview process. Employers cannot elicit this information; however, prospective employees are allowed to volunteer it. If an employer receives wage or salary history information from an employee, the employer cannot use that information to deny employment or offer a lower salary. The only permissible use of salary history is if, after the employer has made a conditional offer of employment, the employer uses salary history to offer the employee more money than they would have offered before learning the information, as long as the higher pay does not violate equal pay laws (which generally require equal pay for equal work, irrespective of sex).

Disclosures

Employers must comply with the following disclosure requirements:

• All internal and external job postings must include a good faith salary range for the position.

Although the law does not contain much detail about setting salary ranges, it notes that the breadth of the range is a factor when determining whether the range was set in good faith. It follows that overly broad ranges may not meet the good faith requirement.

If an employer does not include a good faith salary range in a job posting, the law provides a “cure” provision. Under this provision, the employee must notify the employer of the issue in writing, and the employer has 15 business days to correct the posting. The employee can only pursue a private cause of action after the expiration of this 15-business-day notice period without cure.

Penalties 

The law establishes a private cause of action for an applicant or employee to sue in court, including the possible remedies of actual damages, attorneys’ fees, and equitable relief. The law also empowers the Office of the Attorney General to investigate claimed violations, pursue a lawsuit against an employer in court, and levy penalties between $1,000 and $10,000 for each violation, as well as seek equitable relief.

3. First Responder Protections (SB100)

ENACTS: Virginia Code § 40.1-27.5

EFFECTIVE: July 1, 2026

This new law creates rights for Virginia’s first responders, including volunteer firefighters, EMS personnel or any other recognized volunteer first responder unit.

Prohibitions

Under the new law, no Virginia employer can take adverse action against any first responder because that employee fails to work a shift because of obligations as a first responder during a state of emergency or responding to a legitimate emergency.

Process

First-responder employees must provide the employer at least one hour advanced notice of the need to serve as a first responder. Upon return to work, the first responder must provide the employer an incident report and certification from the incident commander or other official that the employee was actively engaged in the emergency.

Employers are not required to pay an employee for time missed due to first responder obligations. However, the employer must allow the employee to take PTO or sick time in accordance with employer policies if the employee has time accrued. This law does not apply to employees deemed essential employees under a contract or statute.

Remedies

Employees have a new private cause of action for violations of this law. Employees can seek an injunction to prohibit violations, reinstatement (in the event of termination), compensation for lost wages, benefits, and other remuneration, and reasonable attorneys’ fees.

4.  Virginia Paid Family and Medical Leave (PFML) Program (SB2/HB1207)

PAYROLL DEDUCTIONS BEGIN: April 1, 2028

EMPLOYEES BEGIN FILING CLAIMS FOR BENEFITS: December 1, 2028

The PFML is a massive change to Virginia law. Many PFML particulars are not yet known. Employers have several years to plan for PFML, and the Virginia Employment Commission (VEC) will issue regulations and guidance in the coming months. Initially, here are some of the most common questions on PFML based on information available:

What does the law do?

The PFML creates a new Family and Medical Leave Insurance Trust Fund administered by the VEC. The program is funded by a new payroll tax starting April 1, 2028. The tax is generally funded by employers and employees through new payroll tax withholdings. Starting December 1, 2028, employees may file claims with the VEC for benefits.

From a high-level perspective, employers have two choices: (1) comply with the requirements of PFML, or (2) establish their own insurance program that provides the same or greater benefits to employees. If an employer establishes such a plan and receives approval from the VEC, the employer may rely on its private plan outside the PFML framework. Absent approval of a private plan by the VEC, all employers in Virginia are covered by PFML.

Where do I find more details about PFML?

The VEC will issue regulations and guidance on the program in the coming months/years. Employers need to monitor the VEC website and periodically check for guidance.

How will the payroll tax withholdings work?

Employers covered by PFML must set up payroll withholdings for employees beginning April 1, 2028. Businesses with 10 or fewer employees qualify for the small business exception. These employers do not need to pay the employer portion of payroll taxes. For all other larger employers, the PFML tax withholdings are 50/50 split between the employee and employer (unless the employer voluntarily elects to pay a higher percentage).

By October 1 of each year, the VEC will disclose the tax rate for the following year. The General Assembly estimated that a payroll tax of at least .75% of wages is necessary to sustain the Trust Fund, but that is not yet the official tax rate. Look for issuance of the official tax rate by October 2027.

Do employers have to provide PFML notices to employees?

Yes. Employers must provide specific PFML notices to employees upon hire and annually thereafter. There is also a requirement to post notices in common areas. Employers must provide additional notices and statements of rights to employees who request leave or when the employer “acquires knowledge” that an employee’s intent to take leave may qualify. The initial and annual notices must include:

• the terms under which employees may use benefits;
• the amount of benefits available;
• process for filing a claim for benefits;
• a statement of the right to job protection and benefits continuation;
• a statement that discrimination and retaliatory personnel actions are prohibited; and
• a statement that the employee has a right to file a complaint for a violation of the statute. 

The statute also includes language requirements for notices. Notices must be made in English, Spanish, and any language that is the first language spoken by at least 5% of the employer’s workforce. The VEC will likely provide template notices for employer use in the coming months.

What employees are eligible for benefits?

All Virginia employees are eligible. Unlike the Family and Medical Leave Act (FMLA), employees do not need to have worked for a certain period before being eligible for benefits. Additionally, unlike FMLA, PFML applies to all employers regardless of size. Therefore, employees may file claims for benefits in their first weeks of employment regardless of the number of employees working at their location or the size of the employer.

What situations qualify for benefits?

Employees may be eligible for PFML benefits for the following reasons:

• To care for a new child during the first year after birth, adoption, or placement through foster care;
• To care for a family member with a serious health condition;
• For an individual’s own serious health condition that makes the individual unable to perform the functions of their position of employment;
• To care for a covered service member who is the covered individual’s next of kin or other family member;
• Qualifying exigency leave arising out of a family member of the covered individual on active duty, or an impending call or order to active duty, in the Armed Forces; or
• To seek safety services for a covered individual or family member related to domestic violence, sexual assault or stalking. 

What benefits are available?

Employees get up to 12 weeks of benefits per year, except that leave to seek safety services is limited to 4 weeks per year. The amount of the paid benefit is 80% of an individual’s average weekly wages during the first four of the last five completed calendar quarters, with a maximum of 100% of the state average weekly net earnings. The Virginia Department of Labor and Industry (VDOLI) establishes the average weekly wage (AWW) for the entire Commonwealth annually (The 2026 AWW is $1,507.01). The minimum weekly benefit is $100 per week unless the employee’s average weekly wage is less than $100 per week.

Like the FMLA, employees may request PFML for consecutive weeks, intermittent PFML leave, or a reduced schedule. For intermittent requests, employees must take the intermittent leave in a manner that reduces disruptions to business operations if practicable.

How does an employee submit a request for benefits?

There is not a lot of information available about the process for filing claims. Employees will file claims directly to the VEC, and the VEC will decide whether the employee qualifies. Then, the VEC will issue payments to qualifying employees. Although not yet known, it makes sense that the process will somewhat track the VEC’s process for determining and paying unemployment benefits. It is not yet known whether employers will have the opportunity to challenge claims or if there will be a formal administrative process for deciding contested claims.

Does an employer have to return an employee to their pre-PFML job?

Yes, most employees have a right to job restoration, with several exceptions. An employee returning from PFML, who worked for the employer for at least 120 days prior to starting leave, must be restored to the same position or to a position with equivalent seniority, status, employment benefits, pay, and other terms and conditions. Employees who take PFML within their first 120 days of employment are not entitled to job restoration. It is not yet known whether the implementing regulations will include other exceptions, such as a position elimination for legitimate business reasons or misconduct that comes to light while an employee is on leave.

Does the employer administer the leave?

The lines between employer and VEC responsibilities for administering leave are not yet clear. More information will be forthcoming in the VEC regulations and guidance. What is clear is that employers must, at a minimum, respond to requests for information from the VEC on employee claims, track leave taken, and maintain records. Presumably, the VEC will establish some type of challenge/appeal process for employees who disagree with the VEC’s decision to certify leave or calculation of leave – but any administrative framework is not yet developed.

Must the employer maintain the employee’s health coverage while on leave?

Generally, yes. The employer must maintain health care benefits for an employee while on covered leave as though the employee were still working. The employer may still require the employee to pay the employee’s portion of health insurance premiums, but the employer is still responsible for the employer’s portion.

What employer actions are prohibited?

Employers may not retaliate or discriminate against any employee who requests, files for, applies for, or uses any benefit under PFML. This includes interfering with an employee’s right to receive PFML benefits (such as requiring an employee to report to work when they should be on PFML, denying a leave request without justification, etc.). Employers also may not retaliate or discriminate against any employee who files a complaint with any state agency about PFML or participates in any investigation or hearing under the statute.

Employers also may violate the PFML by failing to maintain health coverage, failing to properly return an employee to work, or failing to afford the employee employment benefits or seniority status to which they otherwise would have been entitled.

What are the penalties for non-compliance?

Employees have a private right of action under this statute. An individual who brings a claim against an employer for violating the statute may seek damages including: (1) wages, salary, employment benefits, or other compensation denied or lost due to the violation; (2) if none, then any actual monetary losses sustained by the individual due to the violation such as the cost of providing care up to a sum equal to 12 weeks of wages or salary for the covered individual; (3) interest calculated at the legal rate for lost pay, benefits, or other compensation; (4) liquidated damages equal to the amount of lost pay, benefits, and other compensation and interest unless the employer can establish it had reasonable grounds to believe it was not violating the statute; (5) attorneys’ fees and costs; and (6) equitable relief.

How does PFML work with FMLA or PTO?

Leave under the statute that also meets eligibility requirements under the FMLA shall run concurrently with FMLA leave. However, it seems the PFML leave is a benefit above and beyond PTO. So, employers may not require employees to exhaust PTO prior to filing a claim for PFML.

How do Virginia employers prepare for PFML?

Employers should work with counsel to address the following issues:

• Assessing whether to implement a private plan or to comply with PFML
• Working with payroll providers to set up payroll withholdings
• Updating employment policies
• Prepare required notices
• Train staff on implementing and tracking PFML
• Ensure the employer is properly registered for notices from the VEC
• Train the workforce on PFML processes

5.  Paid Sick Leave (HB 5/SB199)

ENACTS: Va. Code §§ 40.1-33.6:1 – 33.6:7

EFFECTIVE: July 1, 2027, and phased in based on employer size as follows:

• 50 or more employees – July 1, 2027
• 25 or more employees – July 1, 2028
• All employers – July 1, 2029

The new law requires employers to provide one hour of paid sick leave for every 30 hours worked. Employees are allowed to accrue 40 hours per year. Accrued paid sick leave carries over from year to year. Payout of accrued but unused sick days is not required upon termination if consistent with employer policies. Employees may use accrued sick leave for a medical or mental health condition of themselves or a family member. Paid sick leave may also be used for seeking assistance or medical treatment related to domestic violence, stalking, or sexual assault.

Employers have the option to front-load paid sick leave accrual or afford employees more than 40 hours per year. If the policy is drafted correctly, it does not seem employees can “stack” statutory paid sick leave with other paid leave. Existing PTO and sick time plans may meet the requirements of the statute. Employers who negotiate paid leave benefits as part of a collective bargaining agreement may be exempt from the provisions of the statute as to the employees subject to the bargaining agreement.

Like other new laws, the paid sick leave law creates new record-keeping obligations for employers. Employers also must notify employees of their paid sick leave rights upon hire and must also post the established notice. The new law also creates a private cause of action for violations of the statute, whereby employees may seek compensatory damages and attorneys’ fees. The law also empowers the Office of Attorney General and VDOLI to commence administrative investigations and pursue enforcement on behalf of aggrieved employees, including damages and civil penalties. 

6. Streamlined wage & hour remedies (HB 238)

EFFECTIVE: July 1, 2026

AMENDS: several Virginia wage & hour laws

HB 238 changes the playing field for wage and hour lawsuits in several important ways. 

First, the amendments streamline remedies for several wage and hour lawsuits, most importantly minimum wage violations and misclassification (i.e., improperly classifying an employee as an independent contractor). The amendments connect the damages available for minimum wage violations and misclassification to the damages framework available under the Virginia Wage Payment Act (Va. Code § 40.1-29(J)). 

This means that liquidated (double) damages are automatically available for misclassification and minimum wage claims. It also means that triple damages are available for cases where plaintiffs can show “knowing” violations of the law. Also, plaintiffs may have an argument that misclassification and minimum wage cases may be brought collectively. Plaintiffs also may seek attorneys’ fees for any of these violations.

Second, HB 238 expands the definition of “wages” under the Virginia Wage Payment Act. This legislative change responds to a Virginia Supreme Court case finding that commissions do not count as wages. This decision arguably meant that employees could not bring commission disputes as a Virginia Wage Payment Act violation. Now, bonuses, commissions, day-rates, and employment benefits may all be considered wages and may support a Virginia Wage Payment Act claim. This is important because bringing these disputes under the Virginia Wage Payment Act triggers the liquidated damages and attorneys’ fees available under Va. Code § 40.1-29(J).

Third, HB238 empowers the Office of the Attorney General of Virginia to conduct investigations and bring enforcement actions for wage and hour violations. Of note, the OAG now has the power to require statements under oath from employers, interview witnesses anonymously, and issue subpoenas. It is not clear from the statute whether the employer has similar rights to collect and present information. Hopefully, the VDOLI and the Virginia Office of Attorney General will issue more information and guidance in the coming months.

Finally, for the construction industry, HB 238 also amended Va. Code § 11-4.6, a statute that establishes liability for a contractor if a subcontractor fails to pay its employees’ wages and the contractor knew or should have known about the violation. There are two important amendments.

For the first of these changes, the previous version of Va. Code § 11-4.6 could be read to create liability for a contractor down the entire chain of subcontracts. So, if, for instance, a subcontractor of a subcontractor failed to pay its employees, the previous version could be read to establish liability for the contractor several tiers up the contracting chain. This language has been amended, and it appears the current version now only establishes liability for the contractor’s direct subs. This change appears to benefit contractors.

For the second change, the previous version of Va. Code § 11-4.6 contained language stating that a contractor could obtain a written certification under oath from subcontractors that all their employees were properly paid, and such a certification was evidence that the contractor did not know (or should not have known) about the violation. The amendment removes the language about obtaining a certification, and the law now states that the determination of whether a contractor knew or should have known will be made in accordance with the definition of knowing established by VDOLI.

7. New VOSH Heat Illness Prevention Standards (HB1092/SB288)

EFFECTIVE: May 1, 2028

Requires Virginia’s Safety and Health Codes Board to create new heat illness standards by May 1, 2028. The standards will include:

• Requirement to provide employees water, rest, shade, or cool environments, and acclimatization protocols and training
• Heat procedures for workplaces above a certain temperature
• Emergency response procedures

The standards are expected to most significantly impact the construction, restaurants, agriculture, warehousing, and manufacturing sectors.