Last week marked the deadline for Virginia Governor Abigail Spanberger to sign, veto or propose changes or substitutes to those bills passed in Virginia’s recently concluded 2026 General Assembly session.
This is the first time in five years that the same party has held a majority in both chambers of the General Assembly and the Governor’s mansion, and this resulted in the passage of a bevy of new employment-related bills.
While the governor signed a selection of these new laws, she made recommendations or offered substitutes on several of the most consequential ones. The legislature will consider the Governor’s responses when it reconvenes this week (on April 22).
The following is the current status:
| Passed Bills | Overview | Status |
| Minimum Wage Increase (HB1/SB1) | Increases Virginia’s minimum wage to $15 effective January 1, 2028, with annual CPI adjustments thereafter. Virginia’s minimum wage is currently $12.77 and will increase to $13.75 on January 1, 2027. | Approved by the Governor. Employers should ensure that all employees are paid the current minimum wage and plan for future annual increases. |
| Paid Sick Leave (HB5) | Provides all employees with the right to 1 hour of paid sick leave for every 30 hours worked up to 40 hours per week. The requirement would phase in based on the size of the employer on the following schedule: 50 or more employees – July 1, 2027; 25 or more employees – January 1, 2028; 1 or more employee – January 1, 2029. | The Governor sent a recommended substitute bill back to the General Assembly, which tightens certain definitions and expands the permitted use of the leave, among other things, but which retains the primary provisions of the passed bill. Stay tuned for a detailed blog post on this bill if/when it is finalized. |
| Paid Family and Medical Leave (SB2) | Creates a state-administered paid family and medical leave insurance program funded through payroll deductions starting April 1, 2028. Under the program, effective January 1, 2029, eligible employees will be eligible to receive up to 12 weeks of benefits. | The Governor sent a recommended substitute bill back to the General Assembly, which clarifies certain elements of the law but retains the primary provisions. The Governor’s version was adopted by the General Assembly and approved by the Governor on April 22. Stay tuned for a detailed blog post on this bill. |
| Restrictions on Non-Competes (SB170) | Effective July 1, 2027, non-compete agreements will be unenforceable if the employer terminates the employee without cause and fails to provide severance or other compensation. See our full blog post on this bill for more details. | Approved by the Governor. Employers should review their current agreements to consider compliance with the new law. See our full blog for more. |
| Expansion of Covered Employer Definition Under the Virginia Human Rights Act and Extension of Filing Deadline (SB637) | Expands the definition of “employer” for all claims under the Virginia Human Rights Act to employers with five or more employees (under the prior law this was 15 or more employees for certain claims, 5 or more for others and between 5 and 20 for age claims) and extends the time to file a complaint under the of discrimination under the VHRA with the Virginia Office of the Attorney General from 300 days to 2 years. | Approved by the Governor. Small employers should note the VHRA provisions that may now apply to them. All employers should note the longer period of time that employees and former employees will have to file complaints with the OAG. |
| Salary History and Wage Transparency (HB636) | Prohibits employers from affirmatively seeking or relying on a job applicant’s wage or salary history and requires employers to disclose the compensation or compensation range for each position. | The Governor sent a recommended substitute bill back to the General Assembly which clarifies certain elements of the law but retains the primary provisions. The Governor’s version was adopted by the General Assembly and approved by the Governor on April 22. Stay tuned for a detailed blog post on this bill. |
| Wage Payment and Misclassification Penalties (HB238) | Expands the remedies currently available in civil claims for non-payment of wages to minimum wage, overtime, worker misclassification and prevailing wage claims. | The Governor recommended modifications, while supporting the foundation of the bill. The Governor’s version was adopted by the General Assembly and approved by the Governor on April 22. |
| Protected Status and Reasonable Accommodations for Menopause and Perimenopause (SB258) | Adds “menopause and perimenopause to the protected categories under the Virginia Human Rights Act and extends the same protections and accommodation requirements to menopause or perimenopause as currently apply to childbirth, pregnancy and related medical conditions | The Governor returned the bill with a substitute that removes the expanded protections and instead directs the Commissioner of Labor and Industry and the Commissioner of Health to conduct a study on menopause and perimenopause in the workplace, with a report due July 1, 2028. |
| Overtime Requirements for Domestic Workers (SB28) | Extends Virginia’s overtime pay laws to domestic workers including housekeepers and au pairs. | The Governor recommended that the effective date of the law be moved back from July 1, 2027 to July 1, 2028 and that the law would only become effective if reenacted by the 2027 Session of the General Assembly. The Governor’s version was adopted by the General Assembly and approved by the Governor on April 22. |
| Prohibition on Health Care Non-Competes (SB128) | Prohibits non-competes for health care professionals (as defined by the law) except in limited circumstances surrounding the sale of the business. | The Governor recommended a minor addition to carve-outs in the provisions confirming that health care professionals can still be subject to non-disclosure agreements. The Governor’s version was adopted by the General Assembly and is awaiting approval by the Governor. |
| Class Actions (HB449) | Creates a mechanism for Plaintiffs to file class actions (including in employment cases) in Virginia state courts. | The Governor sent a recommended substitute bill back to the General Assembly which modifies certain provisions of the law, including limiting the venue for state-court class actions to four specific jurisdictions. |
| Employment Protections for Voluntary Emergency Responders (SB100) | Prohibits employers from discriminating or retaliating against an employee because the employee is serving as a voluntary emergency responder, and is actively responding to an emergency alarm or during a state of emergency. | Approved by the Governor. |
Employers in Virginia are well advised to stay tuned for the outcome of the pending items above and to prepare for the changes that will result from these bills in the years ahead.
For more information on employment law, you can reach Jessie at jbsummers@lerchearly.com.
