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Virginia: The Legislative Updates Continue!

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Quick Look

  • Virginia has lowered the employee threshold for mandatory participation in its state-facilitated retirement savings program and expanded the program’s features.
  • Virginia has expanded permissible work for minors, including apprenticeships in culinary arts and IT, and summer camp employment for workers as young as 14.
  • Rideshare companies face broadened background check requirements and a new required screening accreditation body.
  • New caps and automatic protections now apply to wage garnishment, including treasurers’ tax liens and financial institution account exemptions.
  • Localities may now pass ordinances requiring incoming service employers to retain incumbent workers during a transition period.
  • Tobacco retailer licensing and enforcement is shifting to the Virginia ABC Authority, with new mandatory compliance checks.

Discussion

Virginia’s 2026 legislative session produced a broad set of employment-related bills, including changes affecting retirement savings, wage garnishment, child labor, background screening, and local government authority. Key aspects of each are summarized below.

 

Retirement Savings Program Expansion. Effective July 1, 2026, HB 176 expands the state-facilitated IRA program administered by the Commonwealth Savers Plan. The bill lowers the eligible employer threshold from 25 employees to five, removes the requirement that eligible employees work at least 30 hours per week, and adds a minimum age of 18 for individuals enrolling independent of an employer relationship. The bill also expands the governing board’s authority to add features such as a lifetime income investment option, financial literacy initiatives, and incentives for employer and employee participation. Employers who withhold employee contributions must remit them within 10 business days of withholding or risk penalties.

 

Expanded Work Opportunities for Minors. Effective July 1, 2026, HB 275 allows 16-and-older students to participate in registered apprenticeships or work-based learning programs in culinary arts or information technology, provided they remain enrolled in an accredited secondary school and the work complies with applicable law. In connection with HB 1218, Virginia’s broader child labor amendments, also effective July 1, 2026, prohibit minors from working in occupations designated hazardous under federal rules while allowing minors 14 and older to work in summer camps.

 

New Background Check Standards for Rideshare Drivers. Effective July 1, 2026, HB 1469 revises background screening requirements for transportation network company (rideshare) partners. Checks may no longer be limited to a specific look-back period, except as otherwise required by law, and must cover all addresses where the partner has resided since age 18. The bill also requires that screening entities be accredited through the Professional Background Screening Association.

 

New Limits on Wage Garnishment. Effective July 1, 2026, HB 1100 limits a treasurer’s lien for delinquent taxes or local charges to 25% of a taxpayer’s disposable earnings in a single pay period, unless the taxpayer’s income exceeds 250% of the poverty guideline, a court finds evidence of flight risk or asset concealment, or the funds are held in trust for a local governing authority. Separately, SB 301 requires financial institutions to automatically exempt a minimum protected account balance of up to $1,000, as well as certain benefit payments deposited within the two months preceding an account review, from garnishment. Judgment debtors are not required to request a hearing to claim this protection, though the automatic exemption does not apply to child support or spousal support obligations.

 

Local Successorship Ordinances for Service Employers. Effective July 1, 2026, SB 430 grants localities authority to adopt ordinances or resolutions requiring successor service employers, those taking over contracts involving property maintenance, airport services, or school food service, to retain incumbent employees for a 90-day transition period. Employers who violate a qualifying local ordinance may face civil liability and monetary damages.

 

Tobacco Retailer Licensing Transferred to ABC Authority. Effective July 1, 2026, with certain provisions delayed until October 1, 2026, HB 308 restructures oversight of liquid nicotine and retail tobacco products, transferring licensing and enforcement from the Department of Taxation to a new permitting system under the Virginia Alcoholic Beverage Control Authority. Permittees will be subject to unannounced compliance buys at least once every 24 months to confirm they are not selling tobacco products to individuals under 21.

 

Action Items

  1. Review retirement plan offerings to determine whether the lowered eligibility threshold now requires participation in the state savings program.
  2. Employers of minors should review job duties and scheduling practices for compliance.
  3. Rideshare companies should update background check protocols to comply with the expanded scope and new accreditation requirement.
  4. Employers should update payroll and garnishment procedures, as applicable.
  5. Tobacco employers should prepare for permitting and compliance checks, as applicable.
  6. Have appropriate personnel trained on all updated requirements.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase