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Virginia: Legislative Updates

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Quick Look

  • The state’s existing minimum wage is codified with a multiyear schedule for further increases.
  • The state’s noncompete statute is amended to void noncompete agreements for employees who are laid off without severance or other monetary compensation.
  • The VHRA is expanded to include employers with five or more employees, and to provide an extended two-year filing window for alleged discriminatory practices.
  • Health insurers must provide coverage for “medically necessary” treatments for menopause and perimenopause symptoms.
  • Several bills remain pending for consideration of the Governor’s recommendations, including bills related to noncompete restrictions for healthcare workers, a state paid family and medical leave program paid sick leave for employees of private employers, a salary history ban and wage transparency law, employment-related protections for menopause and perimenopause, and an overtime expansion to include “domestic workers.”

Discussion

Virginia’s 2026 General Assembly concluded with the passage of several bills impacting employment-related subjects. While a number of the bills remain pending for consideration of the Governor’s recommendations, a few have been enacted into law that employers should prepare for. Key updates are summarized below.

 

Minimum Wage. HB 1 and SB 1 codify the current state hourly minimum wage of $12.77 per hour and establish a multiyear schedule for further increases. The minimum wage will increase to $13.75 per hour effective January 1, 2027, and to $15.00 per hour effective January 1, 2028, with annual inflation-based adjustments thereafter based on the Consumer Price Index.

 

Noncompete Agreements. Effective July 1, 2026, SB 170 amends the state’s existing noncompete statute to limit the enforceability of restrictive covenants for certain terminated employees. Specifically, the bill invalidates noncompete agreements for employees who are laid off without severance benefits or other monetary payments. This restriction does not apply where the employee is terminated for cause. Importantly, the severance benefits or monetary payments must be disclosed to the employee at the time the restrictive covenant is executed. These restrictions apply prospectively to agreements entered into, amended, or renewed on or after the law’s effective date.

 

Additionally, SB 170 broadens the scope of relief available beyond low-wage employees, allowing any employee to bring a civil action against an employer who attempts to enforce a noncompete agreement in violation of the law. If the court finds a violation of the statute, employees may be entitled to injunctive relief, liquidated damages, lost compensation, reasonable attorneys’ fees, and other potential damages.

 

Amendments to VHRA. Effective July 1, 2026, SB 637 expands who qualifies as an “employer” under the Virginia Human Rights Act (VHRA). Currently, the VHRA applies to employers with 15 or more employees, but SB 637 lowers that threshold to apply to employers with five or more employees. Additionally, SB 637 modifies the current 300-day limitation for filing a written complaint of discriminatory practices with the Virginia Office of Civil Rights. Individuals will now have up to two years from the date of the alleged practice to file a written complaint.

 

Health Insurance Coverage for Menopause and Perimenopause. SB 790 requires health insurers to provide coverage for “medically necessary” treatments for menopause and perimenopause symptoms, such as hot flashes, bone density loss, and sleep disruptions. This mandate applies to policies issued or renewed on or after January 1, 2027.

 

Several additional employment-related bills passed by the Virginia legislature were returned by the Governor with recommendations rather than signed as passed. While these bills are expected to ultimately be enacted with the Governor’s recommendations, employers should continue to monitor future developments. These pending bills concern noncompete restrictions for healthcare workers (SB 128), a state paid family and medical leave program (HB 1207), paid sick leave for employees of private employers (SB 199), a salary history ban and wage transparency law (HB 636), employment-related protections for menopause and perimenopause (SB 258), and an overtime expansion to include “domestic workers” (SB 28).

 

Action Items

  1. Prepare to update compensation practices in accordance with scheduled minimum wage increases, as applicable.
  2. Review restrictive covenants with legal counsel.
  3. Employers with five or more employees should review employment policies and practices for compliance with the VHRA.
  4. Consult with legal counsel on potential claims for discriminatory practices and the extended two-year filing window.
  5. Review health plan documents with benefits provider for compliance with menopause and perimenopause coverage requirements.
  6. Monitor future updates on pending bills.
  7. Have appropriate personnel trained on the 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