Employment Law Update: Virginia's 2026 Legislative Session: What Employers Need to Know
Date: February 27, 2026
Paid Leave Expansion
Two significant leave bills are expected to pass this session. House Bill 5 and Senate Bill 199 would expand paid sick leave beyond home health workers to all employees, permitting workers to accrue one (1) hour of leave for every 30 hours worked. The bill covers mental and physical illness, injury, caregiving, and services related to domestic violence, sexual assault, or stalking.
Senate Bill 2 and House Bill 1207 propose a statewide paid family and medical leave insurance program providing up to 12 weeks of paid leave at 80 percent of an employee's average weekly wage. The program would be funded through employer and employee payroll premiums beginning in 2028, with benefits starting in 2029.
Wage Transparency
Virginia's legislature is advancing Senate Bill 215 and House Bill 636 that would prohibit employers from seeking or relying on a prospective employee's wage or salary history when making hiring or compensation decisions. Employers would also be barred from retaliating against applicants who refuse to provide such information. A narrow exception permits employers to consider salary history only when an applicant voluntarily discloses it—without prompting—after an initial offer has been made, and only to support a higher salary than originally offered.
The bills also require employers to disclose wage or salary ranges in all public and internal job postings, with ranges set in good faith. Unlike similar laws in Maryland and D.C., Virginia's legislation creates a private right of action, including potential collective actions, for violations. However, for claims related to posting requirements, applicants must first notify the employer and allow a 15-day cure period before filing suit.
Restrictions on Non-Compete Agreements
The General Assembly is poised to limit the use of restrictive covenants. Senate Bill 128 proposes new restrictions on non-compete agreements for healthcare workers, potentially exempting doctors, nurses, and pharmacists from enforcement. Senate Bill 170 would prohibit the enforcement of a non-compete against any employee who was discharged without a severance offer, forcing employers to choose between offering severance and enforcing non-compete restrictions.
Artificial Intelligence in Employment Decisions
House Bill 999 would prohibit deploying, using, or relying on automated decision systems that result in discrimination based on protected characteristics under the Virginia Human Rights Act. Employers would be responsible for an AI model's decisions even when using a vendor's services. Those relying on AI-assisted hiring or assessment tools may be required to conduct risk assessments, disclose AI use, and potentially provide appeal mechanisms for adverse decisions.
Prepare for what comes next. Virginia's 2026 legislative session is scheduled to adjourn on March 14 and reconvene on April 22 to consider the Governor's actions on bills and budget items. Employers should begin budgeting for potential increased labor costs, reviewing non-compete agreements and severance practices, auditing AI-assisted hiring tools, and evaluating leave policies for compliance with anticipated new requirements. Proactive monitoring and preparation will help businesses ensure compliance, minimize risk, and maintain a competitive edge in this evolving regulatory environment. For assistance evaluating and preparing for these potential changes, please contact your Whiteford Labor and Employment lawyer.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.