5 Virginia Labor Law Changes Employers Need to Know in 2026 and Beyond

Virginia employers are facing significant changes to employment laws, and staying ahead of new compliance requirements is more important than ever.

At INFINITI HR, our network of experienced HR consultants plays an important role in helping us deliver critical, time-sensitive information about labor law changes across the country. Their expertise helps keep employers informed about evolving regulations, upcoming deadlines, and the steps businesses should take to remain compliant.

This time, we’re featuring Mindy Flanigan, CEO of Inspiring HR, who breaks down five important Virginia labor law changes and the timelines employers need to have on their radar.

Reviewed and endorsed by the INFINITI HR Advisory Team.

From restrictions on noncompete agreements and new pay transparency requirements to retirement plans, paid sick leave, and paid family leave, several changes are already in effect, while others will be phased in over the next few years.

For Virginia business owners, understanding these requirements is essential to avoiding compliance issues, updating workplace policies, and preparing for the potential financial and administrative impact.

Quick Answer: Virginia employers should pay attention to five major labor law developments: expanded restrictions on noncompete agreements, pay transparency requirements effective July 1, 2026, expanded RetirePath retirement program requirements, paid sick leave beginning July 1, 2027, and paid family and medical leave contributions beginning April 1, 2028. Employers should review their hiring practices, retirement benefits, leave policies, and payroll systems now to prepare for these changes.

Here are five Virginia labor law changes every employer should have on their radar.

1. How Are Virginia’s Noncompete Laws Changing?

Virginia has expanded restrictions on noncompete agreements, limiting when employers can use or enforce these agreements against certain employees.

Noncompete agreements generally restrict employees from working for competing businesses or starting competing operations after leaving their current employer.

Virginia already prohibited noncompete agreements for certain low-wage workers. That protection expanded in July 2025 to include employees eligible for overtime under the Fair Labor Standards Act, regardless of their earnings.

Additional protections took effect July 1, 2026, including restrictions affecting covered healthcare professionals and employees discharged without severance or other qualifying monetary payments.

For employers, the takeaway is simple: Review existing noncompete agreements and reconsider whether they are appropriate or enforceable.

It’s also important to understand the distinction between noncompete and nonsolicitation agreements. While noncompete agreements restrict competitive employment, nonsolicitation agreements generally address efforts to solicit customers, clients, or employees.

Employers should work with qualified legal counsel to evaluate existing agreements and determine whether alternative protections, such as confidentiality or appropriately structured nonsolicitation agreements, may better serve their business needs.

2. What Are Virginia’s New Pay Transparency Requirements?

Effective July 1, 2026, Virginia employers must include wage or salary ranges in covered job postings and hiring advertisements.

The new requirements also prohibit employers from requesting an applicant’s previous wage or salary history during the hiring process.

This means businesses need to reconsider how they advertise open positions, screen candidates, and discuss compensation during interviews.

Employers should review their recruitment practices and ensure that:

• Job advertisements include the expected wage or salary range.
• Employment applications do not request salary history.
• Hiring managers understand the new requirements.
• Third-party recruiters follow applicable pay transparency rules.
• Internal and external job postings reflect current compensation practices.

One of the most immediate steps employers can take is reviewing active job advertisements to ensure compensation information is included.

Failing to update recruiting practices could expose businesses to unnecessary compliance risks.

3. What Is RetirePath Virginia, and Which Employers Must Comply?

RetirePath Virginia is a state-facilitated retirement savings program designed to provide eligible employees with access to retirement savings opportunities when their employers do not offer a qualifying plan.

The program has expanded to include smaller businesses, making retirement plan compliance an important consideration for employers with as few as five employees.

For employers newly eligible in 2026, registration deadlines are based on employee count:

• 10–24 employees: September 30, 2026
• 5–9 employees: October 30, 2026
• 25 or more employees: October 30, 2026, for employers included in the applicable 2026 registration group

Employers that became eligible before 2026 had earlier deadlines.

Businesses subject to the requirement generally must facilitate RetirePath or certify an applicable exemption, such as offering a qualifying employer-sponsored retirement plan.

For businesses that do not currently provide retirement benefits, this may be an opportunity to evaluate available retirement savings options, including a 401(k), SIMPLE IRA, or the state-facilitated program.

Employers should also consider the administrative responsibilities associated with payroll deductions, employee enrollment, and ongoing contributions.

Taking action before the applicable deadline can help businesses avoid penalties and ensure employees have access to retirement savings opportunities.

4. When Will Virginia’s Paid Sick Leave Requirements Take Effect?

Virginia is expanding paid sick leave requirements, with implementation occurring in phases based on employer size.

The scheduled implementation dates are:

• July 1, 2027: Employers with 50 or more employees
• January 1, 2028: Employers with 25 or more employees
• January 1, 2029: Employers with at least one employee

Under the expanded law, covered employees generally accrue at least one hour of paid sick leave for every 30 hours worked, subject to statutory limits and applicable exceptions.

Employers may need to evaluate whether their existing paid time off policies satisfy the new requirements.

This includes reviewing how leave is earned, tracked, carried over, and used.

For employers that already provide paid sick leave or a broader PTO benefit, compliance may involve updating existing policies rather than creating an entirely new program.

The key takeaway is that employers have time to prepare, but should not wait until the effective date to review their policies.

Businesses should begin evaluating their current leave programs, employee handbooks, and payroll tracking capabilities to determine what adjustments may be necessary.

5. How Will Virginia’s Paid Family and Medical Leave Program Work?

Virginia is also preparing to implement a statewide paid family and medical leave insurance program.

The program is intended to provide eligible employees with paid benefits during qualifying family and medical leave situations.

Unlike some of the other labor law changes, the financial and administrative requirements will be introduced over a longer timeline.

Important dates include:

• January 1, 2028: The state is scheduled to establish and begin administering the program.
• April 1, 2028: Payroll contributions begin for covered employers and employees.
• December 1, 2028: Eligible employees may begin applying for paid family and medical leave benefits.

Depending on the applicable program rules, employers may be responsible for contributions, payroll deductions, or both.

Although employees will not begin receiving benefits until December 2028, businesses should begin evaluating how the program may affect their payroll processes, leave administration, and workforce planning.

Employers should monitor additional state guidance as implementation approaches, particularly regarding contribution rates, employee eligibility, and administrative requirements.

How Can Virginia Employers Prepare for These Labor Law Changes?

With several new requirements already in effect and others approaching, Virginia employers should take a proactive approach to compliance.

These changes affect multiple areas of business operations, including hiring, employee benefits, payroll, and leave administration.

Preparing early allows employers to evaluate existing policies, identify potential gaps, and make necessary adjustments before compliance deadlines arrive.

For businesses managing these responsibilities internally, keeping track of changing state requirements can place additional demands on HR and administrative teams.

Working with an experienced HR services and consulting provider can help employers navigate changing regulations while maintaining consistent employment practices.

Key Takeaways:

• Review noncompete agreements to ensure they comply with Virginia’s expanded restrictions.
• Include wage or salary ranges in covered job postings and eliminate salary history questions from the hiring process.
• Confirm whether your business must register for RetirePath Virginia or certify an exemption.
• Prepare for expanded paid sick leave requirements beginning July 1, 2027, with additional employer groups phased in through 2029.
• Plan for Virginia’s paid family and medical leave program, including payroll contributions beginning April 1, 2028.
• Regularly review employee handbooks, payroll procedures, and HR policies as new requirements take effect.

At INFINITI HR, we help businesses navigate evolving employment regulations while managing the HR, payroll, benefits, and compliance infrastructure that supports their workforce.

Whether your organization needs assistance reviewing workplace policies, administering employee benefits, or preparing for upcoming regulatory changes, our team can help simplify the process.

Talk to our team to learn how INFINITI HR can support your business as Virginia’s employment laws continue to evolve.

Want more insights on employment trends and workforce management? Explore our latest HR blogs and resources or check back for additional updates on human resources, payroll, insurance, and employee benefits.

This article is for informational purposes only and does not constitute legal, tax, or financial advice. Employment laws and regulatory guidance are subject to change. Employers should consult qualified legal counsel or other appropriate professionals regarding requirements specific to their organization.