Virginia Employment Law Updates and Changes - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- 21 hours ago
- 2 min read
Virginia Employment Law Updates and Changes
Effective Date: July 1, 2026
Virginia implemented a broad set of employment law changes effective July 1, 2026, impacting unemployment eligibility, discrimination claims, noncompete enforcement, and hiring practices. Employers with Virginia employees should review policies and processes immediately.
1. Unemployment Benefits Expanded to Locked-Out Employees
Employees who are locked out during a labor dispute are now eligible for unemployment benefits and are no longer automatically disqualified.
Impact:
Employers may see increased unemployment claims tied to labor disputes and should factor this into workforce planning and risk assessments.
2. Virginia Human Rights Act (VHRA) Expansion
The VHRA now applies to employers with 5 or more employees (previously 15 for most claims).
The law also extends the statute of limitations for discrimination claims from 300 days to 2 years.
Impact:
Significantly more employers are now covered
Increased exposure window for discrimination claims
Greater need for consistent documentation and complaint handling
3. Noncompete Agreements Now Tied to Severance
Noncompete agreements are unenforceable if an employee is terminated without severance, unless the termination is for cause.
Impact:
Employers must align termination practices with restrictive covenant strategy
“No severance” separations may eliminate noncompete protections
4. Pay Transparency + Salary History Ban
Employers must now:
Include wage/salary ranges in all job postings (internal and external)
Avoid requesting or relying on salary history in hiring decisions
Impact:
Job postings must be updated immediately
Hiring managers need guidance on compliant interview practices
Compensation structures should be reviewed for consistency
Why This Matters
Virginia continues to move toward a more employee-protective framework. Collectively, these changes:
Expand employer coverage and legal exposure
Increase compliance expectations in hiring and terminations
Require tighter alignment between HR, legal, and compensation practices
Recommended Next Steps
Audit job postings for pay range compliance
Update hiring guidelines to remove salary history inquiries
Review noncompete agreements and severance practices
Train managers on expanded discrimination protections
Ensure documentation practices can withstand a 2-year claim window
Reference:
Get day-to-day updates on Virginia Employment Law Updates and Changes visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).