Top 10 Takeaways for Employers from Virginia’s 2026 General Assembly Session

Virginia’s 2026 legislative session brought a familiar refrain: Many of the same employment bills we’ve tracked in the last few years returned for another attempt.  It also delivered some brand new bills that employers should not ignore.  Whether vetoed, passed, or positioned for future success, the bills highlighted below collectively signal the future in Virginia employment law—more expansive rights for employees.

1. New Protected Classes Are Coming with Menopause as the Headline

SB 258/HB 1173 is set to expand the Virginia Human Rights Act (VHRA) to protect employees experiencing menopause or perimenopause.

If enacted, this bill would:

• Prohibit discrimination based on menopause/perimenopause
• Require reasonable accommodations
• Create an immediate private right of action with a two‑year statute of limitations
• Charge the Virginia Department of Labor and Industry and Department of Health to study these conditions in the workforce and recommend best practices for accommodations

Takeaway: Employers should start viewing menopause-related issues through the same compliance lens as pregnancy, disability, and age—even before this bill becomes law.  This means getting curious if symptoms of perimenopause or menopause start to affect an employee’s performance.  Employers should bookmark and reference the federal Job Accommodation Network for accommodation ideas.

2. Minimum Wage Increases Are a Near Certainty

The General Assembly again proposed stepped minimum wage increases under HB 1/SB 1, moving wages toward $15/hour by 2028, followed by indexed increases. Although vetoed previously, the political momentum remains strong.  Fortunately, many employers already meet or exceed these rates due to labor market pressure.

Takeaway: Employers—especially small and rural businesses—should begin long‑term planning for wage compression and payroll cost increases.

3. Pay Transparency and Salary History Bans Are On Their Way

SB 215/HB 636 revives Virginia’s push for pay transparency, including:

• Mandatory disclosure of wage or salary ranges in job postings—which must be set in “good faith”
• Strict bans on requesting or relying on salary history
• Personal liability exposure through private lawsuits and statutory damages

Takeaway: Even without passage, employers should audit recruiting practices and prepare for a transparency‑driven compensation environment.  Interviewers need to be trained on the limits of discussing compensation with candidates.  Workers not only have the right to talk about their wages, but preparing for wage transparency makes sense because most employees are discussing their compensation with each other more than ever before.

4. Wage & Hour Liability Continues to Expand Beyond Federal Standards

Multiple wage-and-hour proposals found in HB 238 would significantly increase employer exposure by:

• Locking in a 3‑year statute of limitations, regardless of intent
• Allowing triple damages for knowing violations
• Expanding collective action rights for minimum wage and misclassification claims

However, the bill does recognize an employer “safe harbor” by permitting a trial judge to refrain from imposing or lessening liquidated damages where an employer has acted in “good faith” with “reasonable grounds for believing that his act or omission was not in violation” of the law.  Overall, Virginia continues to move away from the more forgiving federal Fair Labor Standards Act framework.

Takeaway: Wage audits, classification reviews, and document retention policies are critical risk‑management tools in Virginia.  Employers should remember that it is their burden to prove the accuracy of their payroll practices, so the investment of such preventative work is well worth your time to avoid six figure judgments and potential civil and criminal penalties if found in violation.

5. Employment Litigation: Easier for Plaintiffs and More Expensive for Employers

Procedural amendments to the Virginia Human Rights Act found in SB 637/HB 925 significantly expand employee rights, including:

• Extending the statute of limitations from 300 days to two years
• Allowing employees to sue based on an EEOC Right‑to‑Sue letter alone, without filing with the Virginia Office of Civil Rights
• Eliminating small‑employer exemptions in many cases, such as where employers demote, suspend, or otherwise discipline employees without terminating their employment

Takeaway: These changes lower barriers to litigation and increase exposure for employers of all sizes.  Employer documentation, investigation practices, and early resolution strategies are more important than ever as Virginia procedure deviates significantly away from the federal administrative charge process before the Equal Employment Opportunity Commission.

 6. Retaliation Protections May Be Broadening

Bills such as HB 238 (formerly found in HB 930) reflect a continued push to dramatically expand retaliation protections by:

• Broadening what qualifies as “protected activity”
• Restricting settlement terms like confidentiality and non‑disparagement
• Permitting a class action to enforce a violation
• Changing the causation standard to favor employees
• Applying protections to public sector employers, thanks to HB 670, which appears to waive sovereign immunity for at least a dozen employment laws found under Title 40.1

Takeaway: Though not all originally proposed provisions passed, the trend of expanded employee rights to blow the whistle in the workplace is unmistakable.  Employers should assume that retaliation claims will remain a primary litigation risk—even when underlying complaints lack merit or even when legitimate nondiscriminatory reasons exist to justify the action.

 7. Paid Leave Remains a Major Legislative Priority

Virginia lawmakers again pursued both Paid Sick Leave (HB 5/SB 199) and a far‑reaching Paid Family and Medical Leave (SB 2 / HB 1207) program.

Key features include:

• Mandatory paid sick leave accrual up to 40 hours, beginning in 2027
• State‑administered paid family and medical leave beginning in 2029
• Broad definitions of “family,” “domestic partner,” and qualifying leave reasons
• Payroll contributions from both employers and employees
• Application to employers of all sizes, not just large employers

Takeaway: Mandatory paid leave is coming, and for more reasons than permitted under the federal Family and Medical Leave Act.  Employers—including small employers—should be planning ahead for 2027 and auditing their leave practices to ensure that they stay competitive as Virginia establishes the new minimum.

8. Noncompetes and Restrictive Covenants: Hanging By a Thread

Several bills, if signed into law, will further narrow the ability of employers to enforce restrictive covenants to protect their substantial legitimate business interests:

• SB 170/SB 569 would require severance or monetary consideration to enforce noncompetes, which must be disclosed at the time an employee signs a noncompete agreement, and
• Noncompetes for health care providers would be prohibited (SB 128/HB 627).

Takeaway: Employers should review all post‑employment restrictions for enforceability and cost—not just legality.  This area has evolved quite a bit in recent years, warranting an audit of these agreements to ensure that employers are not violating the current law with respect to workers who are low-wage earners (i.e., less than $1,507.01 per week) and non-exempt workers.

9. Public Sector Collective Bargaining Is Rapidly Expanding

Comprehensive collective bargaining bills (SB 378/HB 1263) headed to the Governor’s desk appear to:

• Create mandatory, statewide collective bargaining standards
• Reduce local control over collective bargaining in all aspects, from certification to elections to the scope of bargaining to impasse
• Limit a locality’s discretion to exercise fiscal control according to local revenue constraints or competing service priorities
• Empower the new Public Employee Relations Board to sue localities who, for example, do not bargain in good faith

Takeaway: Public employers—and private entities and citizens interacting with them—should prepare for a more regulated, union‑friendly environment.  Now is the time for localities to understand how their pay scales and benefits measure up to the market as employees have more rights than ever to organize.  Unfortunately, the fiscal impact of this law on localities is impossible to measure.

10. Final Thought: Déjà Vu With a Purpose

The continued reappearance of many of these bills in 2026 is a signal employers should not ignore.  These proposals reflect long‑term shifts in expectations about work, fairness, and accountability in the Commonwealth.  Planning now is the most prudent course of action for employers to lead, rather than scramble, as tomorrow’s workforce and legal landscape take shape.

While these developments may introduce new requirements, they also present a meaningful opportunity. Today’s employment laws are fundamentally about protecting and strengthening the workforce, and employers who embrace that reality can turn compliance into a strategic advantage.  By understanding emerging legal trends and building a culture grounded in respect, transparency, and shared accountability, organizations can empower supervisors, support employees, and reinforce trust across the workplace.  And, they may be best positioned to recruit and retain top talent.  The result is not only reduced risk, but a more engaged, productive workforce aligned with your mission and values.

The Sands Anderson Labor and Employment Team stands ready to advise both private and public sector employers on compliance, budgeting, and the HR practices that can withstand what’s coming next to Virginia.  In addition, Faith A. Alejandro and Lindsay Bunting Eubanks will be hosting a webinar for Richmond SHRM on May 14^th to update employers on the state of these bills after the Governor has acted by April 13th and the General Assembly has responded accordingly by April 23rd.  Please join us!

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