Virginia Employment Update: General Assembly Advances Major Labor & Employment Bills

Virginia employers are facing a series of significant labor and employment law changes following the conclusion of the 2026 General Assembly session. Several measures have already been enacted, while others remain pending and could materially affect wage practices, leave policies, and workplace compliance obligations.

Following the April 13, 2026, deadline for Governor Abigail Spanberger to act on bills passed during the 2026 legislative session, labor and employment law in Virginia is poised to change in several key ways.

Below, we provide an overview of the labor and employment bills introduced this session, along with their current status and practical compliance takeaways.

New Virginia Laws Covering Employers

Minimum Wage Increases

HB1/SB1 was signed by Governor Spanberger on April 9, 2026. The legislation codifies the adjusted state hourly minimum wage of $12.77 that took effect on January 1, 2026, increases the rate to $13.75 on January 1, 2027, and then to $15.00 on January 1, 2028. Future adjustments will be based on the consumer price index beginning on January 1, 2029.

Expansion of the Virginia Human Rights Act

SB637 reduces the threshold in the definition of “employer” from 15 employees to five employees. Previously employers with fewer than 15 employees were only prohibited from discharging an employee on the basis of a protected characteristic. Now, all employers in Virginia with more than five employees are prohibited from all forms of discrimination covered by the Act.

The amended law now prohibits any form of discrimination in the terms and conditions of employment. The bill also extends the administrative complaint filing period from 300 days to two years.

Major Bills Still Pending After Governor’s Recommendations

Several of the session’s most consequential workplace bills were not immediately signed by Governor Spanberger and instead were returned with recommendations, leaving them pending for action at the reconvened session. The General Assembly must act on those recommendations before the bills move toward final enactment in amended or original form.

Paid Sick Leave

One of the most significant proposed employment bills is HB5/SB199, which would create a mandate for employers to provide one hour of paid sick leave for every 30 hours worked, together with enforcement provisions, penalties, and a private right of action.

If enacted, this measure would require many employers to revisit paid time off structures and leave administration practices.

Paid Family and Medical Leave Insurance Program

Another bill that could result in increased employer costs is SB2/HB1207. The bill establishes a state-administered paid family and medical leave insurance program through the Virginia Employment Commission, funded by employer and employee premiums beginning April 1, 2028.

Salary History Restrictions and Pay Transparency

HB636/SB215 would prohibit employers from asking for or relying on a prospective employee’s wage or salary history. It would also bar employers from refusing to interview, hire, employ, or promote an applicant for declining to provide that information.

In addition, employers would be required to include the wage, salary, or wage or salary range in public and internal postings for jobs, promotions, transfers, and other employment opportunities.

Amendments to Wage Payment and Misclassification Enforcement

HB238 would amend existing wage payment and worker classification laws to add increased damages and attorney fees and costs for prevailing employees, along with expanded anti-retaliation protections.

Public-Sector Collective Bargaining Overhaul

HB1263/SB378 has received significant public attention. The bill repeals the existing prohibition on public-sector employee unionization. Governor Spanberger proposed substantial amendments, including delaying collective bargaining for local government employees until 2030 to provide localities additional flexibility in implementing the law.

Failed Bills

Not every notable labor and employment proposal survived the legislative session.

• SB32, which would have repealed Virginia’s right-to-work protections, failed in committee.
• HB930, which would have expanded anti-retaliation protections, failed in conference.
• HB1481, which would have required certain employers to provide notice of discrimination-related statutes of limitation, was defeated in the Senate.

Although these measures failed this year, similar bills may be introduced in future legislative sessions.

Conclusion

The Woods Rogers Labor and Employment team is monitoring Virginia’s evolving labor and employment landscape. To receive updates on any changes, please subscribe to our legal alerts.

If you have questions about how these developments may affect your business or organization, please contact the authors of this article or a member of the Woods Rogers Labor & Employment team.