Part 2: New Virginia Wage and Hour Laws Raise the Stakes for Employers

Written by: Kristina Keech Spitler

Virginia’s wage and hour laws continue to evolve, and employers should be paying attention to both the immediate changes and the long-term compliance impact.

New Virginia Minimum Wage Act

While the federal minimum wage remains at $7.25 per hour, Virginia continues to focus on progressive increases in the minimum wage employers in Virginia must pay to their non-exempt employees. Starting on January 1, 2026, the Virginia minimum wage is $12.77 per hour; increasing to $13.75 per hour on January 1, 2027; and then to $15.00 per hour on January 1, 2028. Beginning January 1, 2029, the minimum wage will be annually adjusted to reflect increases in the consumer price index.

While many employers may already be paying at or above these rates because of labor market pressures, businesses — particularly smaller or rural employers — should begin long-term planning for payroll cost increases. Minimum wage increases can have a ripple effect beyond entry-level positions, putting pressure on wage bands and requiring employers to reassess their overall compensation structures.

New Wage and Salary History Ban and Transparency Law

A significant new law in Virginia is the wage and salary history ban and transparency law, effective July 1, 2026. Under this law, employers face both restrictions on what they may not do and affirmative obligations for job postings and pay ranges:

1. Employers may not ask a job applicant or prospective employee for wage or salary history;
   1. Employers may not use wage or salary history to decide whether to hire a prospective employee or to determine the wages or salary to offer;
   1. Employers may not refuse to interview, hire, employ, or promote, or otherwise retaliate against, a prospective or current employee because the person did not provide wage or salary history or requested a wage or salary range;
   1. Employers must disclose the wage, salary, or wage or salary range in each public and internal posting for each job, promotion, transfer, or other employment opportunity; and
   1. Employers must set any disclosed wage or salary range in good faith. In evaluating good faith, the breadth of the stated range may be considered, among other factors.

Employers that fail to comply may face enforcement by the Attorney General, including civil actions and penalties of up to $1,000 for a first violation and up to $5,000 for subsequent violations. Aggrieved individuals may also file a lawsuit within one year of the violation to seek actual damages and legal or equitable relief. For certain posting violations, however, employers will have 15 business days after written notice to cure the violation.

Expansion of Liability for Wage and Hour Violations

Another major development is Virginia’s omnibus wage and hour liability expansion. The new law amends multiple code sections related to minimum wage, worker misclassification, overtime wages, and the prevailing wage rate, and consolidates remedies in one place under § 40.1-29(K). Available remedies for employer violations include wages owed, an additional equal amount as liquidated damages (double damages), prejudgment interest, and reasonable attorneys’ fees and costs. If wages are knowingly withheld, the amount may rise to triple the wages due plus attorneys’ fees and costs.

The law also amends the payment of wages statute to define “employer” as having the same meaning used in the FLSA (i.e., “person” – possible personal liability for decision-maker) and to define “wages” broadly to include hourly wages, minimum wages, piece rate wages, day rates, salaries, overtime wages, prevailing wages, commissions, tips, bonuses, and damages related to misclassification (i.e., erroneously classifying worker as independent contractor or as an FLSA exempt employee). It also requires employers to keep paystubs or online accounting records for at least three years following the date of the work performed.

Taken together, these changes show that Virginia is not simply making minor technical edits. The state is increasing transparency requirements, broadening available remedies, and creating more risk for employers who have not kept their wage practices current in compliance with both federal and state laws.

Contact Kristina Keech Spitler, Esq. or Meghan M. Phillips, Esq. to make sure your organization is prepared for these VHRA changes, review your employment practices, and assist with other employment-related legal issues at 703-369-4738 or kspitler@vfnlaw.com or mphillips@vfnlaw.com.

This blog post is not intended to provide legal advice or substitute for the advice of legal counsel with respect to specific facts and situations. See disclaimer