Virginia Employers Face New Pay Transparency and Medical Leave Requirements

Virginia enacted significant changes to its employment laws in 2026, including new pay transparency requirements and a statewide paid family and medical leave program. Employers should begin preparing now to ensure compliance with these new obligations and to minimize risk.

Pay Transparency and Wage History

Governor Abigail Spanberger recently signed a law aimed at increasing fairness in pay. Effective July 1, the law requires employers to include wage or salary ranges in both public and internal job postings and to establish those ranges in good faith.

The law also prohibits employers from asking job applicants about prior salary history or using that information to determine compensation. Employers may only use wage or salary history in negotiating pay after an initial offer of employment, if the prospective employee voluntarily discloses their pay history and the employer uses it to increase the offer of compensation.

Violations can result in civil penalties, statutory damages, and attorney’s fees. Applicants or employees alleging violations can bring civil actions to enforce their rights. However, unlike in other states with similar laws, they must first provide notice to the employer of the alleged violation. Upon receiving a written notice, employers have 15 business days to cure the defective posting.

In determining a good faith wage or salary range, employers do not have to hire consultants to conduct market research to determine pay ranges for positions. The new law defines "wage or salary range" to mean “the minimum and maximum wage or salary for the position, set in good faith by reference to any applicable pay scale, any previously determined wage or salary range for the position, the actual range of wages or salaries for persons currently holding equivalent positions, or the budgeted amount available for the position, as applicable.” This means that as long as employers have a reasonable and tangible basis by which the range is determined, they have complied with the law.

Woods Rogers has long recommended that employers refrain from asking for prior salary history due to the risk that its use can carry forward past discrimination and result in claims for unequal pay. Compliance with the law’s pay range posting rules should minimize risk of liability, but employers should be proactive in addressing any pay inequality that could become apparent when publishing pay ranges, especially for current employees in the same or similar roles.

The new law does not prohibit employers from asking what an applicant or employee would like to make, and so when posting a job range in compliance with the new law, employers can still gauge whether proposed compensation is acceptable to a candidate.

Ahead of the law’s effective date, employers should remove questions related to wage or salary history from hiring materials and revise job postings to include good faith pay ranges.

Paid Family and Medical Leave

Virginia Senate Bill 2 and House Bill 1207, signed in April 2026, establish Virginia’s first statewide Paid Family and Medical Leave (PFML) insurance program. The law requires the Virginia Employment Commission (VEC) to administer a paid leave system funded through payroll contributions beginning in 2028.

Employers with 11 or more employees must remit the full per-employee contribution to the state and may deduct up to 50% from employees’ wages. Employers with 10 or fewer employees must deduct 50% of the contribution rate, with no additional employer contribution required. Deductions must not reduce wages below the minimum wage.

Contribution rates will be set by the VEC in 2027. Payroll contributions begin April 1, 2028, and benefit payments begin December 1, 2028.

Eligibility for PFML

Like the federal Family and Medical Leave Act (FMLA), eligible employees may receive up to 12 weeks of paid leave for qualifying events, taken continuously or intermittently. Eligibility is broader than FMLA; employees need only meet the monetary threshold for unemployment insurance before taking leave. Currently, that threshold is $3,000 across the highest-earning quarters of a designated base period. This means that PFML will cover employees who are not eligible for FMLA.

Qualifying Events

Qualifying events largely overlap with the FMLA but expand to include:

• Up to four weeks of "safety services" leave for matters related to domestic violence, sexual assault, harassment, or stalking
• A broader definition of "family member," covering individuals who depend on the employee for care or regularly reside in the employee’s home

PFML Benefits and Interaction with Other Leave

PFML leave will run concurrently with FMLA leave when both apply. Benefits are set at 80% of a worker’s average weekly wages, subject to a statewide cap. Employers must also maintain healthcare benefits during leave.

Employees who have been employed for at least 120 days before taking PFML are entitled to job restoration to the same or an equivalent position upon return from leave. This means the employee is in a position with same or equivalent seniority, status, pay, benefits, and other terms and conditions of employment, including fringe benefits and service credits.

Other PFML Requirements

Employers must provide written notice of PFML rights at hire, annually, and when an employee requests PFML, or when the employer learns about an employee’s intention to use PFML. Employers must also display a VEC-provided poster in a conspicuous location in the workplace.

Employers may not retaliate against employees for seeking or using PFML benefits, reporting violations, participating in investigations, or informing others of their rights.

Next Steps for Employers

Employers may apply to the VEC to satisfy PFML obligations through a private plan offering equal or greater benefits. Employers should review current leave policies to determine whether to participate in the state program or pursue a private plan.

Employee handbooks and policies should be updated to reflect the law, including how PFML interacts with FMLA leave.

Human Resources teams should monitor VEC guidance, prepare required notices, and train management-level employees on compliance obligations. Proper training is critical for avoiding interference and retaliation claims.

If you have questions about how these new laws may affect your organization, please contact the authors of this article or any member of the Woods Rogers Labor & Employment team. We will be happy to assist you with reviewing policies and preparing for compliance.