In its recent session, the Virginia General Assembly passed a historic package of employment legislation that will reshape the workplace landscape across the Commonwealth. These new laws — spanning minimum wage increases, paid leave expansion, a ban on pay history questions, and expanded anti-discrimination protections — represent the most significant overhaul of Virginia employment law since 2020 and are on Governor Abigail Spanberger’s desk for signature. Below is a summary of the key provisions, which, if signed by the Governor, could take effect as early as July 1, 2026.

Overview of key provisions

Minimum wage increase (HB 1/SB 1). Virginia's minimum wage would rise on a phased schedule: to $13.75 per hour on January 1, 2027, and to $15.00 per hour on January 1, 2028. Beginning January 1, 2029, the minimum wage would be adjusted annually based on the Consumer Price Index. 

Paid sick leave (HB 5/SB 199). Virginia’s paid sick leave mandate, previously limited to certain home health workers, would now extend to all public and private employees. Employees would accrue at least one hour of paid sick leave for every 30 hours worked, with an annual cap of 40 hours that employees would be permitted to carry over from year to year. Leave could be used for illness, medical appointments, caregiving, and absences related to domestic violence, sexual assault, or stalking. This provision would take delayed effect on July 1, 2027. 

Paid family and medical leave (HB 1207/SB 2). Under this law, Virginia would establish a payroll-funded insurance program providing qualifying employees with up to 12 weeks of paid leave at 80 percent of the employee’s average weekly wage. Paid leave could be taken for a serious health condition, to care for a family member, to bond with a new child, or for a qualifying military exigency. Payroll contributions would be slated to begin April 1, 2028, with benefits available starting December 1, 2028. Employers would be permitted to deduct up to 50 percent of the required contribution from employee wages. 

Ban on pay history inquiries and wage transparency (HB 636/SB 215). Employers would be prohibited from seeking or relying on a prospective employee’s wage or salary history when making hiring or compensation decisions. A narrow exception would permit voluntary disclosure only after the applicant has received an initial offer of compensation. In addition, all job postings, including internal promotions and transfers, would need to include a good-faith wage or salary range. These requirements would take effect July 1, 2026. 

Workplace menopause and perimenopause protections (SB 258/HB 1173). The Virginia Human Rights Act (“VHRA”) would be expanded to include menopause and perimenopause as protected characteristics, prohibiting employer discrimination and requiring reasonable accommodations for known limitations unless doing so would impose an undue hardship. Virginia would be among the first states in the nation to make menopause a protected characteristic. SB 258 would take effect July 1, 2026.

Discrimination statute of limitations expansion (SB 637). The statute of limitations for claims under the Virginia Human Rights Act would be extended from 300 days to 2 years. Additionally, the definition of “employer” would be expanded from businesses with fifteen or more employees to those with only five or more employees. This provision would take effect July 1, 2026.

How these changes may affect your business

Collectively, these laws will require a review and update of employment practices and policies to ensure compliance. The new paid leave mandates would require employers to build or adapt leave-tracking systems, manage accrual and carryover rules, and coordinate benefits with existing policies and FMLA obligations. The pay history ban and wage transparency requirements would necessitate changes to recruiting and job postings, with statutory damages ranging from $1,000 to $10,000 per violation. Significantly, the increase in the time to file a discrimination charge under the VHRA and the application of the statute to employers with only five or more employees, combined with the ability to request a jury trial and limited availability of summary judgment will  greatly expand the potential for a new wave of discrimination litigation, likely moving the vast majority of employment litigation from federal court to Virginia circuit courts.

Please reach out to Betty S.W. Graumlich, Noah S. Oberlander, or the Reed Smith lawyer with whom you normally work for any questions regarding these potential new laws.