Virginia Enacts Major Employment Laws Post-2025 Democratic Sweep

Published July 1, 2026

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Why it matters

Virginia's Democratic-controlled General Assembly has enacted sweeping employment law reforms set to take effect July 1, 2026. Governor Abigail Spanberger signed the package in early June following the legislative session that concluded in May. The laws include a minimum wage increase to $13.75 (with a path to $15.00 by January 2028), a wage transparency mandate requiring employers to disclose pay ranges in job postings and prohibiting salary history inquiries, expanded liability for wage violations under a standardized three-year statute of limitations, restrictions on non-competes for discharged employees without severance, and updates to child labor rules and paid sick leave requirements. The legislation also expands the Virginia Human Rights Act to cover employers with as few as five employees—a significant reduction from prior thresholds that will subject small businesses previously exempt from federal Title VII to state anti-discrimination mandates.

The bills passed during the January-May 2026 General Session include SB 215/HB 636 (Wage Transparency Act), HB 1/SB 1 (minimum wage), HB 238 (wage statute liability), SB 170 (non-compete restrictions), SB 10/HB 275 (child labor), HB 5 (paid sick leave), and SB 128/HB 627 (healthcare non-competes). The legislation also imposes joint liability for general contractors and subcontractors in construction contracts entered after the effective date.

Employers must act immediately to comply. The laws require revised payroll processes, updated employment policies, and new notice obligations before July 1. Violations carry penalties of $1,000 to $10,000 per violation. The wage transparency mandate and VHRA expansion to five-employee thresholds will substantially increase legal exposure for Virginia businesses. The non-compete restrictions for discharged employees without severance represent a notable shift in worker mobility protections.