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Virginia Employers Face Slew of New Laws

 

Employer Insight: Virginia has passed multiple new laws expanding employers’ obligations in the state. Here are some highlights.

  • Virginia employers must disclose salary ranges in all job postings. Employers must set their ranges in good faith, reflecting the actual pay scales. The new law authorizes enforcement actions for an employer’s failure to comply, so employers may want to document methods for determining wages and prepare hiring managers to discuss compensation appropriately.
  • Virginia has banned employers from asking about wage or salary history in hiring decisions.
  • Non-compete clauses are restricted moving forward. Those provisions are void if severance benefits or other monetary payouts are not given at terminations without cause. The severance must be disclosed when the agreement is signed. Terminations for cause are exempted. While the statute is silent on how to calculate an appropriate separation payment, the courts may review whether the severance constitutes reasonable consideration. Restrictions on non-compete clauses apply only to agreements entered into on or after July 1, 2026. The state also banned non-compete agreements for certain healthcare workers. Virginia previously banned non-competes for low-wage earners.
  • The Virginia Human Rights Act has been expanded to apply to all employers with at least five employees. Employees have up to two years to file claims pursuant to the Act. In addition, beginning January 1, 2027, health insurance policies must provide coverage for menopause and perimenopause care. 
  • Virginia’s paid family and medical leave program will provide employees with up to 12 weeks of paid leave, with benefits up to 80% of weekly wages.

Virginia employers are encouraged to fully review the above-referenced changes, as well as those not listed here, to determine how the new laws will affect them and to take appropriate and necessary action.