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Takeaway
Three Virginia employment laws took effect July 1, 2026, covering worker classification, pay transparency and paid family leave. Here’s what employers need to know.
Quick answer: What are Virginia’s new 2026 employment laws?
Three Virginia employment laws took effect July 1, 2026:
- HB 238: strengthens worker classification rules and expands wage payment enforcement, with new joint liability for general contractors
- HB 636/SB 215: bans salary history questions and requires pay ranges in all job postings
- HB 1207/SB 2: creates a statewide paid family and medical leave (PFML) program, with payroll contributions starting April 1, 2028, and benefits available Dec. 1, 2028
Each law introduces new compliance obligations for HR and payroll teams in Virginia.
Virginia employment laws at a glance
| Law | What It Changes | Key Dates |
| HB 238 | Worker classification, wage enforcement, joint liability for general contractors | Effective July 1, 2026 |
| HB 636/SB 215 | Salary history ban and pay range disclosure in job postings | Effective July 1, 2026 |
| HB 1207/SB 2 | Statewide paid family and medical leave program | Effective July 1, 2026; contributions begin April 1, 2028; benefits begin Dec. 1, 2028 |
HB 238: What are Virginia’s new worker classification rules?
What the law does
HB 238 strengthens Virginia’s worker classification framework and expands wage payment enforcement. Under the new law, workers are presumed to be employees unless the hiring entity can show they meet IRS criteria for independent contractor status. Read the full bill at the Virginia Legislative Information System website.
The law makes general contractors jointly and severally liable for wage violations committed by their subcontractors under the Virginia Wage Payment Act and the federal Fair Labor Standards Act.
The law also:
- treats general contractors as “employers” of subcontractor employees for wage payment purposes
- authorizes the Virginia attorney general to investigate and pursue civil actions for wage violations
- expands remedies to include liquidated damages, triple damages for knowing violations, prejudgment interest and attorney fees
- excludes emergency response activities from employment classification determinations
Who is affected
All Virginia employers, with the greatest impact on the construction industry, where general contractors become directly liable for subcontractor wage violations on contracts entered into after July 1, 2026.
How to prepare
- Audit independent contractor relationships against IRS classification criteria.
- Review and update subcontractor agreements to address joint liability.
- Document worker classification decisions.
- Ensure payroll systems reflect accurate worker classifications.
HB 636/SB 215: What are Virginia’s new pay transparency rules?
What the law does
HB 636 and SB 215 prohibit Virginia employers from seeking or relying on a prospective employee’s wage or salary history. Employers must also disclose a wage or salary range in every public and internal job posting, including postings for promotions and transfers.
Under the law, employers:
- cannot ask candidates about wage or salary history
- cannot rely on salary history to evaluate applicants or set starting pay
- cannot retaliate against applicants or employees who decline to share pay history or who request a pay range
- must include a good-faith wage or salary range in every job posting
Penalties for noncompliance
Civil penalties are up to $1,000 for a first violation and up to $5,000 for subsequent violations. Affected individuals may bring a civil action within one year. For job-posting violations, employers have a 15-business-day cure period after written notice.
Who is affected
All Virginia employers that post jobs publicly or internally.
How to prepare
- Remove salary history questions from applications and interview scripts.
- Build good-faith wage or salary ranges for every position.
- Update internal and external job posting templates to include pay ranges.
- Train recruiters and hiring managers on the new rules.
- Set up a process for responding to cure notices within 15 business days.
HB 1207/SB 2: What is Virginia’s paid family and medical leave program?
What the law establishes
HB 1207 and SB 2 create a statewide paid family and medical leave (PFML) program administered by the Virginia Employment Commission (VEC).
Eligible employees may receive up to 12 weeks of paid leave per year for qualifying reasons, including:
- bonding with a new child within the first year of birth, adoption or placement
- caring for a family member with a serious health condition
- recovering from the employee’s own serious health condition
- addressing a qualifying exigency related to a family member’s military service or caring for a covered service member who is the individual’s next of kin or family member
- responding to safety services events such as domestic violence, sexual assault or stalking (capped at four weeks)
Benefits equal 80% of the employee’s average weekly wages, subject to minimum and maximum thresholds. Self-employed individuals may opt into the program.
Key dates
- July 1, 2026: Law takes effect.
- Jan. 1, 2028: VEC must establish the program; employer notice and posting requirements begin.
- April 1, 2028: Payroll contributions begin.
- Dec. 1, 2028: Benefits become available to any covered individual.
How it is funded
The program is funded through payroll contributions deposited into a Family and Medical Leave Insurance Trust Fund. Contribution rates will be set annually by the VEC.
- Employers with more than 10 employees must deduct up to 50% of the premium from employee wages and remit the full contribution required per employee.
- Employers with 10 or fewer employees must deduct 50% of the contribution per employee from the employee’s wages. Employers are not required to make additional contributions.
Employer compliance options
Employers may participate in the state plan or apply for VEC approval to offer a private plan that meets or exceeds the statutory benefit requirements. Private plans must be recertified every two years.
Notice requirements
Employers must provide written notice to employees about PFML rights, benefits, protections and procedures:
- at the time of hire
- annually
- upon employee request
Employers must also post a VEC-provided notice in the workplace in multiple languages. The law prohibits waivers of leave rights entered into after Jan. 1, 2027.
Who is affected
Virtually all private employers in Virginia, including small employers not currently covered by the federal Family and Medical Leave Act.
How to prepare
- Familiarize HR and payroll teams with the PFML program structure and timeline.
- Prepare payroll systems for new contribution deductions by April 1, 2028.
- Decide whether to participate in the state plan or pursue a private plan.
- Develop employee communication materials about PFML rights and benefits.
- Monitor VEC rulemaking and rate announcements beginning in 2027.
Frequently asked questions
When did Virginia’s new employment laws take effect?
All three laws — HB 238, HB 636/SB 215 and HB 1207/SB 2 — took effect July 1, 2026. PFML payroll contributions begin April 1, 2028, and PFML benefits become available Dec. 1, 2028.
Which Virginia employers are affected?
All employers with employees working in Virginia. HB 238 has the greatest impact on construction. HB 636/SB 215 applies to any employer that posts jobs. HB 1207/SB 2 applies to virtually all private employers.
Where can employers get official guidance on Virginia’s new employment laws?
Official guidance is available from the Virginia Department of Labor and Industry, the Virginia Employment Commission and the Virginia Office of the Attorney General.
What should Virginia employers do first?
- Audit worker classifications and subcontractor agreements.
- Update job postings and hiring practices for pay transparency compliance.
- Prepare payroll systems for PFML contributions starting April 1, 2028.
How Paycom helps reduce compliance risk
Compliance challenges often come from manual processes and disconnected systems.
A single software helps employers:
- maintain accurate employee records for audits and inspections
- apply consistent payroll calculations across jurisdictions
- reduce errors that can lead to wage complaints or classification disputes
- streamline job postings to include required pay range disclosures
- prepare payroll for new state-mandated contribution programs
As Virginia’s new employment laws expand compliance obligations, accuracy and process consistency become critical in reducing risk.
