Virginia Employment Law Alert: What Employers Need To Know For 2026
Virginia has delivered a wave of employment legislation that takes effect in 2026. Here’s what’s changing and what employers should do to prepare for these changes:
Noncompetes Squeeze Employers
As of July 1, 2026, Virginia will tighten its already strict noncompete rules. The big change: noncompetes are now unenforceable against employees terminated without cause unless you, as the employer, provide severance or other monetary payment disclosed at the time of signing.
Noncompetes remain enforceable against employees who voluntarily resign, who are terminated for cause, or who receive severance upon a without cause termination.
Note: the statute doesn’t define “cause” or set a minimum severance amount. Second note: remember, employment is still at-will in Virginia. Employers can still terminate an employee with or without cause or reason; this new law only affects the enforceability of any noncompetes at play.
Moreover, Virginia continues to ban noncompetes for “low-wage employees,” which the law defines as anyone earning below $78,364.52/year (the 2026 threshold) or anyone who is classified as “non-exempt” under the FLSA. Accordingly, employers will not be able to enforce noncompete provisions against hourly employees.
Here’s the curveball: nonsolicitation provisions.
In Sentry Force Security, LLC v. Barrera (January 27, 2026), the Virginia Court of Appeals held that employee nonsolicitation provisions count as “covenants not to compete” under the statute. That means an employer cannot enforce provisions barring low-wage employees from soliciting coworkers. Customer nonsolicitation clauses that only bar direct solicitation (not accepting unsolicited business from former customers) remain enforceable against former employees.
State Minimum Wage Is Rising
Next, minimum wage in the Commonwealth is going up. HB 1/SB 1 sets the following schedule:
$12.77/hour (2026) → $13.75/hour (2027) → $15.00/hour (2028) → Annual DOLI-set increases thereafter
And if the legislature reenacts HB 27/SB 28 in 2027, domestic workers will become entitled to overtime pay effective July 1, 2028.
Pay Transparency: No More Secrets
Virginia is also joining the pay transparency club—along with 15 other states and the District of Columbia. Starting July 1, 2026, employers must:
stop asking applicants about salary history. While employers can use salary history if an applicant or candidate volunteers the information, you cannot do so to justify a lower offer.
post good faith and actual salary ranges on all job postings. Posting “competitive compensation” is insufficient.
avoid retaliating against anyone who asks about pay ranges or exercises rights under this law.
Violations carry damages of $1,000 to $10,000 (or actual damages if higher), plus attorney fees.
There is, however, a 15-day cure period for posting violations, but not for salary history inquiries or retaliation claims.
Higher Stakes for Employers – Wage & Hour Laws
Further, Virginia’s wage and hour laws will become significantly more employee friendly as of July 1, 2026:
Misclassification penalties increase: Workers misclassified as independent contractors can now recover double unpaid wages (triple for knowing violations), plus prejudgment interest and attorney fees under the Virginia Wage Payment Act (“VWPA”).
Commissions are wages: The legislature explicitly reversed a 2025 Virginia Supreme Court decision, and, as a result, commissions are now covered by the VWPA.
Enhanced enforcement: The Commissioner for the Department of Labor and Industry (“DOLI”) can now investigate wage claims from third parties (not just employees), enter employer premises to review records, and pursue administrative or court enforcement actions.
Your To-Do List Before July 1
With July 1 deadlines looming, here’s the action list for businesses with workers in Virginia:
Audit your noncompete agreements. Remove employee nonsolicitation provisions for low-wage/non-exempt employees. Add severance provisions (with cause definitions) if you want noncompetes enforceable after without-cause terminations.
Update job postings. Add good-faith salary ranges to every posting—internal and external.
Scrub salary history questions. Remove them from applications and train interviewers not to ask.
Review worker classifications. With enhanced penalties for misclassification, now is the time to audit your independent contractor relationships.
Update your posted notices. Virginia law requires employers to post notices about noncompete restrictions that conform to the new law.
Prepare and budget for minimum wage increases.
The Commonwealth of Virginia has made it clear that employers face increased scrutiny and exposure to liability across the board—from how you hire, to how you pay, to how you restrict departing employees. The good news? Most of these changes don’t take effect until July 1, 2026, so you have time to get your house in order.
If you have questions about how these changes affect your Virginia workforce, please contact Amy Epstein Gluck, Chair of the Employment, Labor, and Benefits Department and Employment Counsel to Pierson Ferdinand, at amy.epsteingluck@pierferd.com.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2026 Pierson Ferdinand LLP.
