From your HR partners at Arc Human Capital
Virginia just changed
the rules of work.
Here’s what it means for you.
Virginia’s 2026 legislative session was one of the most active for employers in years. We’ve done the research so you don’t have to — here’s a plain-language guide to every major change, when it kicks in, and how we can help make sure your organization is ready.
“Eight or more significant laws were signed this session — affecting everything from how you post jobs to how employees take sick days. This guide covers all of it, organized by when it affects you — and what you’ll want expert support to get right.”
These laws are already in effect. If you haven’t acted yet, now is the time — deadlines don’t wait.
Hiring & Compensation
Job postings must now include what the job pays
SB215 / HB636What this means for your organization
Starting July 1, every job posting — whether you publish it yourself or work with a recruiter — must include a real salary or pay range. The range has to be set in good faith: something so wide it tells candidates nothing doesn’t count. Employers also can no longer ask candidates what they currently earn or have earned in the past. The goal is to bring more fairness and transparency to hiring — and it puts Virginia in line with DC and Maryland, which passed similar laws in 2024.
How Arc Human Capital can support you
These are must-do steps for compliance — and exactly where having an experienced HR partner matters.
- Audit every open job posting — internal and external — and update them with compliant, defensible pay ranges before July 1
- Conduct a pay compression analysis comparing your proposed posted ranges to current staff salaries — once ranges are public, employees will see them, and unexplained gaps create real retention and morale risk
- Train everyone involved in your hiring process — managers, coordinators, recruiters — so they understand exactly what they can and cannot ask, and don’t inadvertently ask an illegal question in an interview that exposes your organization to liability
- Build a documented, defensible methodology for how your pay ranges are set — not just for compliance, but to confidently answer the candidate who asks “why is the range this wide?”
- If using applications or an applicant tracking system, remove any salary history fields
Employment Agreements
Non-compete agreements just got significantly narrower
SB170 · SB128/HB627What this means for your organization
These rules apply to any agreement entered, amended, or renewed after July 1. Two new restrictions passed this session. First, if your organization lets someone go without cause, any non-compete they signed, on or after July 1, 2026 is now unenforceable — unless you disclosed severance or payment for that restriction at the time they signed. Second, non-compete agreements with licensed healthcare professionals (doctors, nurses, counselors, and others) are now fully banned in Virginia after July 1, 2026, with very narrow exceptions.
How Arc Human Capital can support you
Non-compete law is nuanced and the consequences of getting it wrong — an unenforceable agreement when you need it most — are significant.
- Review all existing non-compete templates and flag any that will need updating before they are used again, amended, or renewed
- Identify every licensed healthcare professional role in your organization and develop compliant alternatives — such as targeted non-solicitation clauses — that still protect your business
- Partner with you to design a severance package that reflects what the non-compete is actually worth to your organization — the disclosed payment should be meaningful enough to hold up legally and reflect the real competitive value you’re protecting
- Ensure any severance offered in connection with a non-compete is formally documented at the time of signing — not referenced later in a separate agreement
- Review any agreements currently in negotiation or up for renewal before July 1 to determine which ones trigger the new law
Workplace Protections
Discrimination protections now cover smaller employers
SB637 / HB925What this means for your organization
The Virginia Human Rights Act now applies to employers with as few as 5 employees (previously 15). The window for employees to file a discrimination complaint has also been extended from 300 days to 2 years — giving more time to bring claims and requiring longer documentation retention on your end.
How Arc Human Capital can support you
- Review and update your anti-discrimination and equal opportunity policies to ensure they meet the expanded requirements
- Establish documentation retention schedules that account for the new 2-year complaint window
- Provide manager training on recognizing and properly handling discrimination-related concerns before they escalate
Wage & Hour
Wage claims just got more powerful — and longer-lasting
HB238What this means for your organization
Virginia standardized the rules across minimum wage, overtime, and worker classification. The statute of limitations is now 3 years for all of these. Employers must keep paystub records for 3 years. Worker misclassification now carries the same penalties as wage theft. In construction, general contractors can be held jointly liable for their subcontractors’ wage violations on contracts entered after July 1.
How Arc Human Capital can support you
- Conduct an independent contractor classification review to identify any arrangements that may carry elevated risk under the new standards
- Confirm your payroll and records systems are retaining paystub data for the full 3-year period
- For construction organizations: review subcontractor agreements and advise on risk allocation language
Leave & Attendance
Volunteer firefighters & EMTs are now protected from discipline
SB100What this means for your organization
If an employee misses work because they are actively responding to an emergency as a volunteer responder, you cannot discipline or terminate them for that absence. You’re not required to pay them for the missed time, but they may use accrued leave if they choose. This doesn’t apply to employees whose contracts designate them as essential personnel.
How Arc Human Capital can support you
- Update your employee handbook or attendance and leave policies to include compliant volunteer emergency responder language
- Brief managers on how to handle and document these absences correctly from day one — a misstep here is an easy, avoidable claim
Workplace Safety
Heat illness protections are coming for indoor & outdoor workers
SB288 / HB1092What this means for your organization
Virginia has directed its Safety and Health Codes Board to write formal regulations protecting workers from heat illness — both outside and in hot indoor environments. The regulations will require things like water access, rest breaks, shaded areas, and heat emergency plans. The exact rules are still being drafted, so this is a “watch and prepare” item right now.
How Arc Human Capital can support you
- Identify which of your roles and worksites will likely fall under the new requirements
- Begin drafting a heat illness prevention framework now — getting ahead of the regulation means less scramble when it’s finalized
- Monitor the rulemaking process and proactively update your policies when requirements are published
Retirement Benefits
Small employers must now offer a state-facilitated retirement savings option
HB176 — Chapter 84What this means for your organization
Virginia’s Commonwealth Savers Plan — a state-facilitated IRA program — now applies to employers with as few as 5 employees (previously 25). The 30-hour-per-week work requirement for employee eligibility has also been removed, meaning more part-time workers are now covered.
Already offer a retirement plan? If your organization sponsors a qualified plan — 401(k), 403(b), SIMPLE IRA, SEP-IRA, or similar — you are exempt from this requirement. This program is designed specifically for employees who have no employer-sponsored retirement option today.
View full bill text → Virginia LIS
How Arc Human Capital can support you
This is a meaningful decision point — defaulting into the state program isn’t always the right answer for your employees or your organization.
- Determine whether your organization falls within the newly expanded threshold and confirm your obligations under the law
- Evaluate whether enrolling in the state program or establishing a qualified plan (401(k), SIMPLE IRA, etc.) better serves your workforce — a real retirement plan is often a stronger recruiting and retention tool
- Prepare clear employee communications covering auto-enrollment, contribution defaults, and opt-out rights
- Handle the administrative setup so you’re compliant on day one without the burden falling on you
These changes are six months out — but the planning, budgeting, and preparation need to start today. Don’t wait until the new year.
Compensation
Virginia’s minimum wage is going up — twice
SB1 / HB1What this means for your organization
Virginia’s minimum wage increases in two steps: $13.75/hour on January 1, 2027, then $15.00/hour on January 1, 2028. After that, it adjusts automatically each year with inflation. This is not just about employees earning minimum wage — raises at the bottom of the pay scale often ripple upward, compressing the gap between entry-level and more experienced workers. Planning now for both increases together is far more effective than reacting to each one separately.
Poster requirement: Virginia law requires employers to display the current minimum wage on their official state and federal labor law posters. When the minimum wage changes on January 1, 2027, your posters must be updated to reflect the new rate — both the state minimum wage poster and any all-in-one compliance posters that include wage information. Displaying an outdated poster is a violation. Your HR partner can help ensure you’re using a current, compliant version.
How Arc Human Capital can support you
Two increases in 12 months can quietly reshape your entire compensation structure if you’re not proactively managing it.
- Model the full compensation impact of both the 2027 and 2028 increases now — including pay compression analysis across your pay bands
- Review internal equity across levels so raises at the bottom don’t quietly erode the pay difference between entry-level and experienced staff
- Update labor law posters ahead of January 1, 2027 and again ahead of January 1, 2028 — we can source compliant, current versions for your locations
- Coordinate payroll system updates in advance of each effective date so there’s no gap on day one
This one is bigger than it looks — and the employers who start preparing now will have a significant advantage over those who wait.
Leave Benefits
Paid sick leave is coming for virtually every Virginia employee
SB199 / HB5What this means for your organization
Virginia is expanding paid sick leave from home health workers (the only group currently covered) to all employees — at every private employer and government agency in the state. Employees earn 1 hour of paid sick leave for every 30 hours worked, up to 40 hours a year, with mandatory carryover year to year.
Employees can use this leave for their own or a family member’s illness, and also for situations involving domestic violence, sexual assault, or stalking. “Family member” is defined broadly — it includes not just immediate family but domestic partners, stepfamily, people in the employee’s care, and anyone with a close family-like relationship.
The rollout is phased: 50+ employees by July 1, 2027 · 25+ by January 1, 2028 · everyone by January 1, 2029. If you already offer PTO with 40+ hours usable for the same reasons, you may already be compliant — we can work with you to determine whether your current policy meets the standard or needs adjustment.
How Arc Human Capital can support you
The regulations are still being written — which means getting ahead of this now puts you in the driver’s seat instead of scrambling to catch up.
- Review your current PTO and sick leave policies against the new law to identify gaps — and determine whether your existing policy already qualifies
- Configure or advise on HRIS tracking changes needed for accrual, carryover, and the 12-month rehire reinstatement requirement
- Draft a written advance-notice policy — employers who require advance notice must have it in writing, or they lose the ability to enforce it
- Monitor state regulations as DOLI finalizes them and update your policies accordingly as requirements become clear
- Help you communicate the new benefit clearly and positively to your employees — a well-handled rollout builds trust
Two years feels like a long time — until you’re six months out and scrambling. Virginia’s PFML program will touch every employer in the state, and the groundwork starts in 2027.
Leave Benefits
Virginia is launching its first-ever paid family & medical leave program
SB2 / HB1207What this means for your organization
Virginia is joining a growing number of states with a state-run paid family and medical leave (PFML) insurance program. Starting in late 2028, employees can receive up to 12 weeks of paid leave per year at 80% of their wages (capped at the state average weekly net earnings — $1,507.01/week in 2026) for qualifying reasons, including welcoming a new child, caring for a seriously ill family member, their own serious health condition, military family needs, and domestic violence situations.
The program is funded through payroll premiums split between employers and employees — similar to how unemployment insurance works today. The Virginia Employment Commission will announce the exact premium rates by October 1, 2027. Employers with more than 10 employees must both deduct the employee share and contribute their own portion.
One important note: these benefits belong to the employee, not the employer. They’re portable, individual-based, and not tied to your specific company’s leave policy.
How Arc Human Capital can support you
This is the most complex employment benefit Virginia has ever launched. The employers who plan early will implement it smoothly — those who don’t will face difficult payroll changes, confused employees, and policy gaps under pressure.
- Monitor the VEC’s October 2027 premium rate announcement and translate it into clear budget projections for your leadership team
- Advise on and help implement the payroll system changes needed to handle the new premium deductions — including the different rules for employers above and below 10 employees
- Work through how PFML coordinates with your existing FMLA, short-term disability, and PTO policies — so employees aren’t getting double benefits and you’re not inadvertently creating gaps
- Update leave policies, employee handbooks, and manager guidelines well ahead of the December 2028 benefit start date
- Develop clear employee communications so your team understands their new benefits — and knows Arc helped make it happen
These bills haven’t fully cleared yet, but they’re worth knowing about — we’re tracking them closely and will alert you when they’re confirmed.
Workplace Protections
Menopause and perimenopause may soon be protected under the VHRA
SB258 / HB1173A bill working through final approval would add menopause and perimenopause as protected characteristics — meaning employers would need to consider reasonable accommodations and could not discriminate on this basis. We’re monitoring the final effective date and will update your policies and train your managers when it’s confirmed.
Wage Protection
Using immigration status as a workplace threat may become a serious offense
HB675Pending finalization, this bill would prohibit any employer from using an employee’s immigration status as leverage in connection with wage violations. Civil penalties could reach $12,000 for repeat offenses. We’re tracking the final language and will incorporate it into policy guidance as soon as it’s enacted.
Ready to get ahead of
all of this?
These laws require real action — and the right time to start is before the deadlines are on top of you. We’re here to make compliance manageable.
Already an Arc client?
Reach out directly to your dedicated HR partner — they know your business and are already thinking through what these changes mean for you specifically. Your contact information is in your onboarding materials, or reply to any recent email from your Arc team.
Not yet a client?
Learn more about how Arc Human Capital partners with Virginia organizations to handle exactly this kind of compliance work — so you can focus on running your organization.
Why Arc Human Capital
Compliance is complex.
That’s why we exist.
From job posting audits to PFML implementation, Arc Human Capital partners with Virginia organizations to navigate what’s changing — before it becomes a problem, a claim, or a headline.
Compliant, current, and tailored to your org
So your team doesn’t accidentally create liability
We watch the calendar so you don’t have to
You hear about changes from us, not the news