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Virginia Enacts Various Employment-Related Laws

Beyond Virginia’s newly enacted laws dealing with non-compete agreements, sick leave, family and medical leave, and wage transparency, the Commonwealth has enacted several additional employment-related laws.  Here is a summary of some of the most important changes.

Annual Minimum Wage Increases

Governor Spanberger signed SB 1 into law for the purpose of raising the state minimum wage to $15.00 per hour by 2028.  This will be done in two increments. First, on January 1, 2027, the state minimum wage will increase from $12.77 per hour to $13.75 per hour.  Then on January 1, 2028, the state minimum wage will increase to $15.00 per hour. The minimum wage will increase annually thereafter in an amount to be set by the Commissioner.

Other Miscellaneous Changes

Virginia has also enacted SB 238, an omnibus bill amending various wage and hour laws that go into effect July 1, 2026. Importantly, this includes an amendment making it clear that commissions are “wages” under Virginia law, a reversal of a 2025 Virginia Supreme Court decision finding the opposite. In addition, employers must now keep records of employees’ pay stubs or an online accounting for at least three years following the date of the work performed.

The changes also broaden the Commissioner’s ability to initiate an investigation into an employee’s workplace complaint.  Under the amendments, an investigation may be initiated upon the receipt of a complaint from an employee or an interested third party, or at the Commissioner’s discretion.  The consent of the employee is no longer required.  The Commissioner now also has the authority to compel an employer or employee to submit a statement or report in writing and under oath, as to all necessary information. The Commissioner can also examine, under oath, any person alleged to have participated in or have knowledge relevant to the investigation, with the authority to issue subpoenas in support of these powers.

This bill also standardizes the remedy for misclassification of workers and minimum wage violations to be the same as under the Virginia Wage Payment Act.  Courts now must award the wages owed, an additional equal amount as liquidated damages, plus prejudgment interest, and reasonable attorney fees and costs.  If the court finds that the employer knowingly failed to pay wages to an employee in accordance with this section, the court must award the employee an amount equal to triple the amount of wages due and reasonable attorney fees and costs.

The amendments to this bill also provide that in any action to recover unpaid wages commenced on or after July 1, 2026, if the employer shows to the satisfaction of the court or the Commissioner that the act or omission giving rise to such action was in good faith and that the employer had reasonable grounds for believing that their act or omission was not in violation of the law, the court or the Commissioner may not award any additional damages or impose any additional penalties. Importantly, however, an employer may only claim this limited good faith defense if the employer cures the violation within 14 days of being notified of the violation by paying all wages unlawfully withheld.  The statute does not identify the party whose notification triggers the employer’s 14-day cure period, but the most reasonable reading is that this notification can come from an employee or the government agency bringing the action.

Relevant to the construction industry, the amendments provide that any construction contract between a general contractor and its subcontractor entered into on or after July 1, 2026, is deemed to include a provision under which the general contractor and its subcontractor are jointly and severally liable to pay the employees of the subcontractor the greater of all wages provided by the employment agreement between the subcontractor and its employees or the amount of wages that the subcontractor is required to pay its employees under applicable law.

With these changes, and especially the increased financial consequences, it is more important than ever for employers to be sure they fully understand and remain compliant with wage and hour requirements. Please do not hesitate to reach out with your questions or to discuss your organization’s practices.

Child Labor

Changes have also been made to Virginia’s child labor laws in SB 10.  The laws expand prohibitions against individuals under 18 years old working in roles deemed hazardous by the U.S. Secretary of Labor in addition to the Commissioner of Labor and Industry, as previously provided. These changes also include provisions providing that individuals aged 16 years or older may serve in an apprenticeship program or other work-based learning experience related to culinary arts or information technology under certain circumstances.

Virginia Human Rights Act

Governor Spanberger signed SB 637 into law, which provides that, effective July 1, 2026, employers with at least five employees, rather than fifteen, are covered under the Virginia Human Rights Act. The bill also extends the amount of time employees may take to file a complaint alleging unlawful discrimination with the Office of the Attorney General from 300 days to two years.

We understand that keeping up with the new obligations in Virginia can be overwhelming.  Please let us know if you have any questions or would like to discuss.