For the past several years, Virginia employers have seen relatively few changes to employment laws. That’s changing.
The 2026 General Assembly passed several significant pieces of workplace legislation that affect hiring, compensation, benefits, leave, and restrictive covenants. Some of these laws took effect on July 1, 2026, while others will roll out over the next several years.
The good news? Companies still have time to prepare.
Quick Hits – click each topic to skip to its content
Here’s a breakdown of the biggest changes—and what employers should be doing now.
Virginia Employment Laws Effective July 1, 2026
Pay Transparency & Pay History Restrictions are Here
Virginia employers are now required to be more transparent throughout the hiring process.
The new law requires employers to:
- Include a good-faith compensation range in internal and external job postings.
- Stop asking applicants about their salary history.
- Avoid retaliating against or refusing to hire applicants who decline to disclose previous compensation.
What companies should do now
- Remove salary history questions from employment applications.
- Update job posting templates to include compensation ranges.
- Train hiring managers and recruiters on the new requirements.
- Review hiring practices for consistency and compliance.
Retirement Savings Requirements Expanded
Virginia’s RetirePath program now applies to many smaller employers.
Beginning July 1, 2026, employers with five or more employees that do not offer a qualified retirement plan must either:
- Offer a qualified retirement plan, or
- Participate in Virginia’s RetirePath program.
Even employers that already provide a retirement plan should expect to certify their exemption when notified by the state.
What employers should do now
- Determine whether your organization is affected.
- Watch for communication from RetirePath.
- Consider whether establishing a private retirement plan makes sense for your organization.
Non-Compete Rules Continue to Tighten
Virginia continues to narrow the enforceability of restrictive covenant agreements.
Among the most significant changes:
- New requirements apply when employees are terminated without cause.
- Certain non-compete agreements may become unenforceable unless updated.
- Employers generally cannot prohibit former employees from accepting unsolicited business from former customers
What employers should do now
- Review all non-compete agreements.
- Update offer letters and separation agreements.
- Work with employment attorney to ensure existing agreements remain enforceable. (See below information re: consulting vs. attorney)
- Consider strengthening confidentiality and other protective agreements where appropriate.
Volunteer Emergency Responder Leave
Virginia now protects employees who serve as volunteer emergency responders. Employers may not discipline or retaliate against employees who miss work while actively responding to an emergency as a volunteer responder, provided required documentation is supplied upon return.
This leave is generally unpaid unless the employee elects to use available paid leave.
What employers should do now
- Update employee handbook leave policies.
- Train supervisors on the new protections.
- Establish procedures for documenting qualifying leave.
Coming Soon: Changes Beginning in 2027 and Beyond
While these laws aren’t effective yet, now is the time to begin planning.
Virginia Paid Sick Leave Law (2027)
Virginia has adopted a phased rollout of mandatory paid sick leave.
Implementation begins:
Employers with 50 or more employees
Employers with 25 or more employees
Employers with at least one employee
Employees will accrue at least one hour of paid sick leave for every 30 hours worked, up to 40 hours annually.
Many employers may already meet these requirements through an existing PTO policy—but only if the policy satisfies the law’s usage and eligibility requirements.
Paid Family & Medical Leave
Virginia is also moving toward a statewide Paid Family and Medical Leave program. While implementation details are still being finalized, employers should expect future requirements involving payroll contributions and paid leave benefits.
This is one area we’ll continue monitoring closely as additional guidance becomes available.
Minimum Wage Increases
Virginia’s minimum wage is scheduled to increase to:
$13.75 per hour
$15.00 per hour
Although these increases are still months away, employers should begin evaluating their compensation strategies. It’s important to remember that increasing only your lowest-paid positions can create wage compression, making it more difficult to differentiate pay based on experience, responsibility, or tenure.
What Should Employers Do Next?
The number of legislative changes this year can feel overwhelming, but they don’t all require immediate action.
Here’s a practical checklist to get started:
- Review hiring documents and remove salary history questions.
- Add good-faith pay ranges to job postings.
- Determine whether the RetirePath expansion applies to your business.
- Review restrictive covenant agreements with legal counsel.
- Update handbook policies for volunteer emergency responder leave.
- Begin evaluating PTO policies ahead of paid sick leave implementation.
- Plan for future minimum wage increases and potential wage compression.
When Should You Call an HR Consultant vs. an Employment Attorney?
With so many employment law changes taking effect in Virginia, we’d be remiss if we didn’t address a question we hear often:
“Should I call my HR consultant or my attorney?”
The answer is often both—but for different reasons.
An HR consultant helps you put the law into practice. We assist with updating handbooks and policies, revising job postings, training managers, developing compliant HR processes, and implementing practical solutions that fit your organization. While we aren’t attorneys and don’t provide legal advice, we can help you navigate the vast majority of day-to-day HR compliance issues and are experienced in recognizing when legal counsel should be brought into the conversation.
An employment attorney provides legal advice and legal opinions. If you’re assessing legal risk, determining whether an agreement is enforceable, responding to a government agency, facing litigation, or navigating a particularly complex employee relations issue, it’s time to involve an attorney.
Think of it this way: HR consultants help you operationalize employment laws, while employment attorneys help you interpret and defend them. The two roles complement each other and are most effective when working together.
At Inspiring HR, we stay current on employment law developments so we can help clients implement compliant HR practices with confidence. When a situation requires legal interpretation or legal strategy, we’re happy to collaborate with your employment attorney—or connect you with one of our trusted employment law partners.
Watch Our Video: Do I Need an HR Consultant or a Lawyer?
We're Here to Help
Employment laws continue to evolve, and staying compliant is much easier when changes are addressed proactively rather than reactively.
Whether you need assistance updating your handbook, reviewing hiring practices, revising employment agreements, or preparing for upcoming leave requirements, our team is here to help.
