Virginia Clean Slate Law Imposes New Restrictions on Criminal Background Checks

Virginia’s new “Clean Slate” law, effective July 1, 2026, significantly expands the availability of criminal record sealing and introduces new compliance obligations for employers, housing providers, insurers, and background screening companies. Organizations that rely on criminal history information should review their policies, applications, and procedures now to ensure compliance and avoid potential penalties.

What Is in the New Law

While much of the Act addresses eligible offenses and the sealing process, two provisions may impact those who obtain and use criminal history information as part of background investigations for employment, school, housing, and insurance applicants.

• One statute prohibits certain employers, educational institutions, and state and local government officials from asking applicants about any arrest, charge, or conviction that has been sealed.
• It extends this restriction to applications for insurance and the sale or rental of a dwelling.

The Act also requires job, housing, and insurance applications that ask about an applicant’s criminal history to include a notice that information related to sealed records does not have to be disclosed. A separate statute imposes several requirements on private background screening companies regarding their access to and handling of sealed criminal and traffic history records. These requirements are outlined below.

Prohibited Practices Regarding Sealed Information

Except as outlined below, pursuant to Va. Code § 19.2-392.15, the following entities “shall not, in any application, interview, or otherwise, require an applicant for employment or admission to disclose information concerning any arrest, charge, or conviction against him that has been sealed.”

• Private employers that are not subject to federal laws or regulations in the hiring process
• Agencies, officials, and employees of state and local governments
• Educational institutions

The law prohibits state and local governments from requiring applicants for a license, permit, registration, or governmental service to disclose that information. It also bars insurance companies and those engaged in the sale or rental of dwellings from doing the same.

Importantly, any person who willfully violates this section is guilty of a Class 1 misdemeanor for each violation.

Exceptions Related to Job Applications

Certain employers may still ask questions about sealed arrests, charges, and convictions, and some applicants are required to disclose such information. The prohibition discussed above does not apply if:

• An individual is applying for full-time or part-time employment with, or to volunteer with, state or local law enforcement
• The Virginia Code requires the employer to make such an inquiry
• Federal law requires the employer to make such an inquiry
• The position or access to the premises where duties are performed is subject to requirements imposed in the interest of national security
• The Virginia Code allows an employer to access such sealed records under the Department of Criminal Justice Services Board’s rules, regulations, and procedures

Required Changes to Certain Applications

If you are subject to this new restriction and your job, housing, or insurance application asks about prior arrests, charges, or convictions, you must provide a notice that information concerning an arrest, charge, or conviction that has been sealed does not have to be disclosed.

This notice may be included in the application itself or provided in a separate document. Failing to meet this requirement may result in criminal liability.

Private Background Screening Companies

Va. Code § 19.2-392.16 governs how “business screening services” must handle sealed criminal and traffic records. These services are defined as “a person engaged in the business of collecting, assembling, evaluating, or disseminating Virginia criminal history records or traffic history records on individuals.”

In summary, these services must:

• Promptly delete, and not disseminate, any criminal or traffic record they know is sealed, regardless of the source
• Register with the Virginia State Police (VSP) to receive electronic notification of sealing orders and pay an annual licensing fee of $30,000 per account
• Maintain confidentiality, acknowledge receipt of sealing orders, delete sealed records immediately upon notification, and implement robust data security measures
• When disseminating a criminal or traffic history record received on or after July 1, 2026, include the date when the record was received by the service and provide a notice that the information may include records that have been sealed since that date
• Implement reasonable procedures to ensure records are accurate and complete.
• Provide procedures for individuals to request their own records and any related information maintained or sold by the service

Violations of this section can result in civil actions brought by individuals or the Attorney General’s Office. It is also a crime to knowingly and intentionally disclose sealed records.

Conclusion

If you intend to ask applicants about their criminal history and are not an exempt entity, you should ensure your applications are updated and that employees involved in the hiring process understand these changes to avoid violating the new law.

If you are an employment screening agency, tenant screening service, or otherwise engaged in collecting, evaluating, or disseminating Virginia criminal or traffic records, you should carefully review your new obligations to ensure compliance and reduce exposure to penalties and legal action.

Taking proactive steps now to comply with Virginia’s new requirements regarding sealed records can help minimize enforcement and litigation risk.

If you have questions about how Virginia’s new Clean Slate law may affect your business, please contact the author of this article or any member of Woods Rogers’ Labor & Employment or Government & Special Investigations teams.