Virginia employers face a wave of new labor regulations starting July 1, 2026. Governor Spanberger has signed multiple bills into law that significantly alter how businesses manage their workforce.
One major shift involves noncompete agreements. Under new laws, companies cannot enforce these covenants against discharged employees unless they provided severance or terminated the worker for cause. Additionally, the existing ban on noncompetes for low-wage workers now extends to all health care professionals, with limited exceptions for business sales or specific recruitment cost repayments.
Wage and compensation rules see substantial changes as well. The state is implementing a structured minimum wage increase, targeting $13.75 by 2027 and $15.00 by 2028. After 2029, these rates will adjust annually based on the Consumer Price Index. Employers must also stop requesting salary history from applicants and include good-faith pay ranges in all job postings.
New leave mandates provide additional coverage for workers. A state-run paid family and medical leave program will offer up to twelve weeks of benefits, while a separate law creates a paid sick leave entitlement for public and private employees. Employers should also note the expansion of the Virginia Human Rights Act, which now applies to businesses with five or more employees and extends the statute of limitations for discrimination claims to two years.
Compliance requirements extend to operational recordkeeping as well. Starting in mid-2026, companies must keep employee paystubs for at least three years. Organizations should review their current handbooks and employment agreements now to ensure they align with these incoming mandates before the effective dates.