Intro to Virginia Labor Laws

Effective July 1, 2026, Virginia will restrict employers from enforcing non-compete agreements in certain termination scenarios. The new law prohibits employers from enforcing non-compete agreements against any employee terminated without cause if the employer fails to provide the affected employee with a severance or monetary payment. Severance payments are not required if an employee resigns or is terminated for cause. The law does not apply to agreements signed before its effective date.

Virginia employers should review their for-cause termination definitions and assess any non-compete agreements that could be affected when the law takes effect.

Virginia Governor Glenn Youngkin signed into law an extension of the state’s ban on non-compete agreements to broaden the definition of "low-wage employee." The updated definition includes employees who are non-exempt under the FLSA, regardless of earnings. This significantly narrows the group of employees eligible for non-compete agreements.

Employers should assess current agreements to ensure they do not include employees now classified as low-wage under the amended law.

Virginia is the latest state to join 19 others in implementing living donor leave laws. Beginning July 1, 2023, Virginia employers with 50 or more employees will be required to allow employees to utilize leave for donation-related purposes in a given 12-month period: 30 business days for bone marrow donation and 60 business days for organ donation. There is no requirement for this leave to be paid by the employer, but employers must continue medical benefits for the duration of the leave and to reinstate the employee to their original position, or similar role with equal pay.

Virginia is stepping up to protect its healthcare workforce, joining a national movement to address critical issues in the industry. Effective July 1, 2025, certain healthcare employers across the Commonwealth will be required to implement a robust new system for reporting workplace violence incidents. This legislation, codified in House Bill 2269 and Senate Bill 162, underscores Virginia's commitment to improving the safety of those on the front lines of patient care. Further guidance from the Virginia Secretary of Health and Human Resources is anticipated.

Employers should update their handbooks, onboarding, and training programs to ensure compliance with the new reporting structure and need for a non-retaliation policy.

Governor Youngkin has signed HB 1895 into law, which amends Virginia’s existing Nondisclosure Agreement Law to restrict any suspected suppression or concealment of claims of sexual harassment or sexual assault. Nondisclosure, confidentiality, and non-disparagement agreements that denote or exclude these claims for employees or prospective employees will be null and void per this new law.

SB 1040 was also signed into law this winter, which prohibits the use of social security numbers (SSNs) on employee identification badges or cards. Both laws take effect on July 1 of this year. Employers should review any nondisclosure, non-disparagement, and confidentiality agreements and/or employee identification procedures, and update accordingly.

In a repeal of Virginia’s Permanent Standard, the Virginia Safety and Health Codes Board issued guidance to replace the ETS to enforce the right to wear or not wear a mask in non-federally mandated environments, unless required by law or if it is deemed medically appropriate. The guidance states that Virginia Occupational Safety and Health (VOSH) prohibits discrimination based on wearing or not wearing a mask in the workplace.