Virginia
Virginia: More Legislative Changes!
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Discussion
Following last month’s update, Virginia’s governor signed a number of additional bills into law that impact employer obligations and employee rights. Key updates are summarized below.
Omnibus Labor and Employment Bill. Effective July 1, 2026, HB 238 amends various provisions of Virginia’s wage and hour laws in several significant respects:
- Employee Misclassification.HB 238 expands the scope of relief available to employees who are misclassified as independent contractors. Successful plaintiffs will now be entitled to all remedies available under the Virginia Wage Payment Act (VWPA), including automatic recovery of double the amount of any unpaid wages, plus prejudgment interest and reasonable attorneys’ fees and costs. For “knowing” violations, a court may award triple the amount of lost wages.
- Minimum Wage and Overtime Remedies.HB 238 similarly expands the remedies available for minimum wage and overtime violations in Virginia to the full range of VWPA remedies. This makes damages available for Virginia minimum wage and overtime violations more expansive than those available under federal law.
- Commission Payments as Wages.HB 238 amends the VWPA to reverse a 2025 Virginia Supreme Court decision that had found commission payments are not covered by the VWPA. The statute is now explicitly amended to make clear that commissions constitute “wages” under Virginia law.
- Expanded Investigative Authority.HB 238 also broadens the circumstances under which the Commissioner of Virginia’s Department of Labor and Industry may investigate suspected wage and hour violations. The Commissioner may now initiate investigative proceedings upon receipt of a complaint from an employee or an interested third party, or at the Commissioner’s own discretion. The statute further expressly authorizes the Commissioner, or their representative, to enter an employer’s premises to review records. Where the Commissioner determines there is a good-faith basis to believe a violation has occurred, the Commissioner may institute administrative or court enforcement action, seeking all remedies available under the VWPA.
Pay Transparency and Wage History. Effective July 1, 2026, HB 636 places Virginia among the growing list of states enacting pay transparency requirements and restrictions on the use of pay history in hiring. The law prohibits employers from:
- Seeking the pay history of prospective employees;
- Relying on pay history when making hiring decisions or determining compensation upon hire; and
- Retaliating against a prospective or current employee for refusing to provide pay history or for requesting a pay range for an open position.
If an applicant voluntarily discloses their pay history, an employer may only consider it after making an initial job offer and solely for the purpose of justifying a higher salary.
The law also requires employers to set a salary or wage range for any open position, and include the salary or wage range in both external job postings and internal promotion or transfer opportunities. Under the law, “wage or salary range” means “the minimum and maximum wage or salary for the position, set in good faith by reference to any applicable pay scale, any previously determined wage or salary range for the position, the actual range of wages or salaries for persons currently holding equivalent positions, or the budgeted amount available for the position.”
The law creates a private right of action, with penalties of up to $10,000 damages, as well as attorneys’ fees.
Anti-Retaliation Protections for Voluntary Emergency Responders. Effective July 1, 2026, SB 100 prohibits employers from retaliating against employees who miss work to serve as voluntary emergency responders during declared emergencies. Employees who are subjected to retaliation in violation of this statute may seek reinstatement and recovery of lost wages.
Unemployment Insurance for Certain Lockout Employees. Effective July 1, 2026, SB 433 expands unemployment eligibility to certain locked-out workers. Under the amended law, locked-out employees who are otherwise eligible for benefits shall receive such benefits unless (i) the recognized or certified collective bargaining representative of the locked-out employees refuses to meet under reasonable conditions with the employer to discuss the issues giving rise to the lockout, (ii) there is a final adjudication under the federal National Labor Relations Act that such representative has refused to bargain in good faith with the employer, or (iii) the lockout is the direct result of such representative’s violation of an existing collective bargaining agreement.
Minimum Wage for Farm Laborers and Farm Employees. Historically, farm laborers and farm employees have been excepted from Virginia’s minimum wage requirements. Effective January 1, 2027, HB 20 eliminates this exception, meaning employers will be required to pay covered farm laborers and farm employees Virginia’s statutory minimum wage.
Heat Illness Prevention Standards. HB 1092 directs Virginia’s safety and health regulatory body to adopt a standard addressing heat illness in the workplace no later than May 1, 2028. While the law does not yet impose any new requirements on employers, it signals that workplace heat exposure standards are forthcoming. The rules are expected to cover both indoor and outdoor environments, and are expected to draw from prior Virginia proposals, standards enacted in other states, and guidance from NIOSH and ACGIH.
Overtime Pay for Domestic Service Workers. Similarly, domestic service workers have historically been exempt from Virginia’s statutory overtime pay requirement. HB 27 eliminates this exemption effective July 1, 2028, requiring employers to pay overtime compensation to babysitters, cooks, maids, housekeepers, nannies, nurses, caretakers, handymen, gardeners, home health aides, and personal care aides. Employers should note, however, that the statute will only take effect if it is reenacted by the 2027 Session of the Virginia General Assembly. Employers in the domestic services space should monitor legislative developments accordingly.
Action Items
- Review independent contractor classifications with legal counsel for compliance.
- Review commission agreements with legal counsel for compliance.
- Review hiring procedures, job postings, application materials, and compensation practices for compliance with new wage transparency and salary history law.
- Prepare for minimum wage compliance for covered farm laborers, as applicable.
- Monitor legislative developments in 2027 regarding domestic service workers.
- Have appropriate personnel trained on the requirements.
Virginia: New PFML is Coming!
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Discussion
Virginia joins its regional neighbors in establishing a Paid Family and Medical Leave (PFML) program under HB 1207. The program provides up to 12 workweeks of job-protected leave for qualifying reasons and a partial wage replacement benefit during that leave. Key aspects regarding contributions, reasons for leave, benefit amounts, leave usage, and private plan alternatives are summarized below.
Contributions. The program will be administered by the Virginia Employment Commission and financed through a payroll-funded insurance model, with contributions split between employers and employees. Employer contribution obligations vary by size:
- Employers with more than 10 employees may withhold up to 50% of the required contribution from employee wages, with the employer responsible for the remainder.
- Employers with 10 or fewer employees are only required to collect and remit 50% of the contribution rate applicable to larger employers, with no additional employer contribution owed.
Contribution collection is set to begin on April 1, 2028, with benefits available beginning December 1, 2028.
Qualifying Reasons for Leave. Benefits are available to covered employees authorized to work in the United States who take leave for the following reasons:
- To care for a new child through birth, adoption, or foster care in the first year;
- Because of the employee’s own serious health condition;
- To care for a family member with a serious health condition;
- For reasons related to a family member’s military service; or
- To seek safety services for the employee or a family member.
Under the law, “family member” means a child, grandchild, grandparent, parent, sibling, spouse, or domestic partner of an employee, including those with step, foster, or adopted relationships, and includes any individual (i) who regularly resides in the employee’s home or where the relationship creates an expectation that the employee care for such individual and (ii) who depends on the employee for care. “Family member” does not include an individual who simply resides in the home with no expectation that the employee care for the individual.
The term “safety services” is defined under the law to mean:
- Legal or law-enforcement assistance or remedies to ensure the health and safety of an individual, including preparing for and participating in protective order proceedings or other civil or criminal legal proceedings related to domestic violence, harassment, sexual assault, or stalking;
- Medical treatment, recovery services, or mental health counseling for injuries caused by domestic violence, pervasive harassment, sexual assault, or stalking;
- Services from a victim services provider; and
- Relocation and home security services to ensure the safety of an individual who has experienced domestic violence, pervasive harassment, sexual assault, or stalking.
Depending on the qualifying reason for leave, the employee’s claim for PFML must be supported by appropriate certification, such as medical records, provider statements, or official documents verifying the qualifying event.
Amount of Benefits. Employees may take up to 12 weeks of leave in a 52-week period, with the exception that leave for safety services is capped at four weeks per benefit year. The weekly benefit equals 80% of the employee’s average weekly wage, subject to a maximum cap of 100% of the statewide average weekly wage (adjusted annually).
Leave may be taken intermittently and runs concurrently with any applicable federal FMLA leave. Employees who have been employed for at least 120 days prior to the start of leave are entitled to reinstatement to their position or an equivalent upon return. Employers must maintain healthcare benefits throughout any period of PFML leave.
Private Plan Option. Employers that prefer not to participate in the state program may apply for a Commission-approved private insurance plan. To qualify, the private plan must provide benefits at least equivalent to the state program and must not cost employees more than they would pay under the state plan.
Action Items
- Begin planning for PFML implementation.
- Evaluate company contribution obligations based on employee headcounts.
- Review leave policies and begin preparations to coordinate with PFML program requirements.
- Consult with payroll administrators regarding contribution withholding obligations.
- Evaluate state program versus private plan alternatives, as applicable.
- Have appropriate personnel trained on PFML requirements.
- Monitor Virginia Employment Commission for implementation details and regulatory updates.
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