Staff Recommendation: Virginia’s Proposed 2026 Employment Legislation (as of April 14, 2026)

Description

 Virginia is poised to pass sweeping employment legislation this year.

BILLS THAT HAVE BEEN PASSED BY HOUSE AND SENATE AND SIGNED INTO LAW BY GOVERNOR

Minimum Wage

• The current state hourly minimum wage of $12.77 per hour (that was effective January 1, 2026) will increase to $13.75 per hour effective January 1, 2027, and to $15.00 per hour effective January 1, 2028.
• Effective January 1, 2029, and annually thereafter, the minimum wage rate will be adjusted to reflect increases in the consumer price index (CPI).

Restrictions on Non-Compete Agreements

• New restrictions will apply to non-compete agreements entered into, amended, or renewed on or after July 1, 2026.
• Virginia currently prohibits employers from entering into or enforcing a post-employment “covenant not to compete” with “low-wage workers,” i.e., those earning less than $1,507.01 per week or any other non-exempt employee under the FLSA (irrespective of their earnings). Any “health care professional” can’t be required to sign a non-compete agreement. “Health care professionals” are defined as “any person licensed, registered, or certified by the Board of Medicine, Board of Nursing, Board of Optometry, Board of Psychology, or Board of Social Work.”
• As of July 1, 2026, employers are prohibited from enforcing a non-compete against any employee who was discharged without a severance offer.

Heat Safety Standard

• Virginia Safety and Health Codes Board is required to develop and adopt heat illness regulations by May 1, 2028.
• Applies to employees working indoors and outdoors.

• The regulations must include requirements for employers to: provide water, access to shade or climate-controlled environments when practicable, rest periods, acclimatization to working in heat, and effective training regarding heat illness prevention; implement high-heat procedures when the temperature equals or exceeds 80 degrees Fahrenheit; and establish effective emergency response procedures.
• Exemptions for: heat exposure during the provision of emergency services that involve emergency law enforcement, emergency medical services, firefighting services, rescue and evacuation operations, or emergency restoration of essential utilities, including electric and telecommunication utilities; and heat exposure lasting no longer than 15 consecutive minutes.

BILLS THAT HAVE BEEN PASSED BY HOUSE AND SENATE, BUT GOVERNOR SENT BACK WITH AMENDMENTS (NOT LAW YET)

Right to Work

• For the first time in history, public employees (including employees of the state and localities, teachers, firefighters, etc.) and home care workers will have the right to unionize and collectively bargain. It appears the legislation will also apply to employees of political subdivisions, such as Community Service Boards (CSBs) and Housing Authorities.
• The legislation builds on a 2020 law that lifted Virginia’s blanket ban on public sector collective bargaining by allowing workers to collectively bargain in localities that allowed for such in their regulations or voted to allow.
•  The legislation creates the Public Employee Relations Board (PERB). The PERB will determine appropriate bargaining units and provide for certification and decertification elections for exclusive bargaining representatives of state employees and local government employees. The bill requires public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment.
• The legislation also establishes the Virginia Home Care Authority (VCCA). The VCCA will serve as the public employer of individual providers for purposes of collective bargaining. The legislation repeals a provision that declares that in any procedure providing for the designation, selection, or authorization of a labor organization to represent employees the right of an individual employee to vote by secret ballot. This will represent a major change in the way private duty and Medicaid personal care providers do business in the future.

Paid Sick and Safe Leave

• Effective date will likely be July 1, 2027.
• Expands legal requirements that currently require one hour of paid sick leave for every 30 hours worked for home health workers to cover all employees of private employers and state and local governments.
• Employees will begin accruing sick leave at the time of and employers may elect to front load an employee’s annual sick and safe leave.
• Employers must permit employees to carry over at least 40 hours of accrued but unused sick and safe leave to the following year.
• Employers are not required to pay out accrued but unused sick and safe leave at termination.

Paid Family & Medical Leave Insurance Program

• A state-administered paid family and medical leave (PFML) insurance program. Covered employees receive payment from the state – not their employer.
• Funded by payroll premiums shared by both employers and employees. Employers may deduct up to 50% of the required contributions from employee pay. Contributions will begin in 2028, and benefits will become available starting in 2029. The employer contribution rate is expected to be fixed by October 1, 2027.
• Up to 12 weeks of paid leave in a benefit year can be used for an employee’s serious health condition, to care for a family member with a serious health condition, or to care for a new child.
• Paid leave benefits will equal to 80% of the average weekly wage, subject to a cap of 100% of the statewide average weekly wage.
• Employees can receive paid family and medical leave benefits on an intermittent or reduced schedule.
• Employees are entitled to be restored to the same or equivalent position at the conclusion of the leave and employers are required to maintain an employee’s health care benefits during the leave.
• SESCO will be monitoring closely what Governor Spanberger does to include the passage of a budget that funds the legislation.

Employers should begin budgeting for potential increased labor costs, reviewing non-compete agreements and severance practices, and evaluating leave policies for compliance with anticipated new requirements. Proactive monitoring and preparation will help employers ensure compliance, minimize risk, and maintain a competitive edge in this evolving regulatory environment.