Part 7: Additional Employment Law Changes and Areas to Watch for Virginia Employers

Written by: Kristina Keech Spitler

Virginia continues to be an active landscape for employment law developments, with several new laws taking effect in 2026 that employers should understand. While many of these changes are more targeted in scope than the other new laws discussed in Parts 1-6 of this series, they still carry important compliance implications. At the same time, proposed legislation, particularly in the collective bargaining space, signals that broader changes may still be on the horizon, making it essential for employers to stay informed.

Law Prohibiting Coercion or Threats Based on Immigration Status

Effective July 1, 2026, employers in Virginia, including the Commonwealth and its agencies and political subdivisions, are prohibited from using coercion or threats based on immigration status in furtherance of violating Virginia’s minimum wage or wage payment laws. Employees may file complaints for violations of this law with the Commissioner within 180 days, and civil penalties may be imposed for each violation: up to $5,000 for a first offense, up to $9,000 for a second offense, and up to $12,000 for a third or subsequent offense.

Law Protecting Volunteer Emergency Responders

Effective July 1, 2026, employers may not take adverse action against employees who fail to report to work because they are serving as volunteer emergency responders, provided certain conditions are met. This legal protection applies when the employee is actively responding to an emergency alarm or during a state of emergency if the employee gives at least one hour of notice before the scheduled shift and provides documentation upon returning to work from a commanding official confirming the employee’s active engagement and the date and time relief from service.

Under this law, the employer is not required to pay the employee for that missed time, although the employee may use vacation or sick leave, and that the law does not apply to employees deemed essential by statute or contract. It further states that the employee has a right to file a civil lawsuit within one year, seeking relief such as an injunction, reinstatement, lost wages or benefits with interest, and attorneys’ fees.

Law Requiring Bias Training for Doctors and Nurses

Effective July 1, 2026, the Boards of Medicine and Nursing will require licensed healthcare providers to complete bias reduction training every two years. The first training must take a broad look at how conscious and unconscious bias can affect care, particularly during pregnancy and postpartum. Future trainings will focus on real-world practice issues, including how race-based assumptions can negatively impact diagnosis and treatment in conditions like sickle cell disease. These requirements are intended to promote more individualized care and help reduce disparities in health outcomes.

Law Expanding Title 40.1 to Public Employers

If reenacted by the 2027 General Assembly, a new law would significantly expand the reach of Virginia’s labor and employment statutes to include public employers—such as the Commonwealth, local governments, and school boards. This represents a notable shift from current law, where most public entities are excluded unless coverage is specifically extended.

Under the proposed changes, public bodies would be subject to key requirements under Title 40.1, including workplace safety and health standards and Virginia wage and hour laws. They would also be covered by a range of employee protection provisions. These protections include anti-retaliation rules, equal pay requirements, and restrictions on worker misclassification. The law would also address issues like employee privacy (including limits on social media access and use of personal information), protections related to nondisclosure agreements, and leave rights for certain workers, such as crime victims and Civil Air Patrol volunteers.

While public employers would be included within the definition of “employer,” the Commonwealth and its agencies would not face civil or administrative penalties under these provisions—meaning the practical impact may be more limited in terms of enforcement.

Law Granting Unpaid Education Leave for Certain Employee Association Officers

Effective July 1, 2026, school boards must adopt policies allowing certain employee association officers to take unpaid educational leave for up to four years. Employees who take this leave may also purchase service credit through the Virginia Retirement System for that period.

Collective Bargaining Remains an Active Area to Watch

Although two of the three bills regarding collective bargaining discussed below did not become law, employers should still be aware that this is an area to watch in Virginia. 

Vetoed Repeal of Existing Prohibition of Collective Bargaining for Public Employees

Although vetoed on May 14, 2026 by the Governor, this legislation that would have:

• repealed Virginia’s prohibition on collective bargaining by public employees;
• required public employers and certified employee organizations to negotiate in good faith over wages, hours, and working conditions;
• created a Public Employee Relations Board; and
• established the Virginia Home Care Council for collective bargaining purposes.

However, even under the proposal, strikes would still have been prohibited. In the Governor’s stated reason for the veto, she stated she supports collective bargaining rights generally, but disagreed with the legislation because the General Assembly did not adopt her proposed phased approach that would have first established collective bargaining for certain categories of state employees, home care workers, and higher education service employees before broader local implementation.

Failed Bill on Denial or Abridgement of Right to Work

This proposed legislation would have eliminated Virginia’s “right-to-work” status by allowing union membership to become a condition of employment. Although it failed to pass, the measure would have marked a significant shift by permitting employers and unions to require employees to join a union as a condition of hire or continued employment.

            Law on Unemployment Insurance Eligibility for Locked-Out Employees

Effective July 1, 2026, this law updates Virginia’s unemployment rules to clarify that employer lockouts are not treated as labor disputes, allowing locked-out employees to qualify for unemployment benefits if otherwise eligible. Benefits may be denied in limited cases, such as when a union refuses to bargain in good faith or causes the lockout.

Conclusion

These developments highlight that even narrower employment law changes can carry meaningful compliance obligations and potential risk if overlooked. Virginia employers—particularly public employers and those working closely with public entities—should remain attentive to these evolving requirements.

More broadly, Virginia continues to be an active legislative environment in the labor and employment space. Although several collective bargaining proposals did not pass, they reflect ongoing policy discussions, signaling that employers should continue to monitor developments in future legislative sessions.

If you would like to ensure your policies and management practices align with Virginia’s evolving employment law requirements, stay informed about ongoing legal developments, or have other employment-related legal questions, contact VFN’s employment law attorneys, Kristina Keech Spitler, Esq. or Meghan M. Phillips, Esq., 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