Virginia Legislature Passes Broad Slate of Employment-Related Reforms

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Quick Hits

• Virginia’s General Assembly has passed legislation that would prohibit noncompete agreements for healthcare professionals.
• HB1 and SB1 would establish a multiyear schedule to increase Virginia’s minimum wage to $15 per hour by January 1, 2028, with further adjustments based on the Consumer Price Index starting in 2029.
• SB258 and SB790 would introduce workplace protections and health insurance coverage for menopause and perimenopause.

Prohibiting Healthcare Noncompete Agreements (Senate Bill (SB) 128)

Following the trend of expanding employee protections, SB128 seeks to broaden the existing ban on “low-wage” covenants not to compete to include all “health care professionals.” Current Virginia law restricts noncompete agreements only for “low-wage employees” or those classified as nonexempt under the Fair Labor Standards Act (FLSA). SB128, however, would prohibit employers from entering into, enforcing, or threatening to enforce such agreements with any person licensed, registered, or certified by the Boards of Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.

However, SB128 contains the following exemptions:

• Nondisclosure agreements that prohibit the misappropriation of “certain information to which an employee has access,” such as trade secrets and proprietary confidential information.
• Noncompetition or other restrictive covenants entered into in connection with the sale of a healthcare business, provided the restriction is reasonable in scope, duration, and geography.
• Provisions requiring repayment for “recruitment-related costs, including relocation expenses, signing or retention bonuses, and other remuneration provided to induce relocation or establishment of a practice in a specified geographic area, as well as recruiting, education, or training expenses,” would remain enforceable as related to healthcare professionals employed for less than five years.
• Nonsolicitation agreements that prohibit departing professionals from soliciting or attempting to solicit their employer’s clients or prospective clients: (1) with whom the departing healthcare professional had “material contact during employment”; and (2) for which the departing healthcare professional would be providing “products and services that are the same as or substantially similar to those provided by the employer.”

SB128 would authorize a private civil right of action to void any violative agreement and recover liquidated damages, lost compensation, damages, and reasonable attorneys’ fees and costs, in addition to the $10,000 civil penalty already in place.

If signed by Governor Spanberger, SB128 will take effect July 1, 2026.

Minimum Wage Increase (House Bill (HB) 1 and SB1)

While Virginia’s minimum wage currently sits at $12.77 following recent inflation adjustments, HB1 and SB1 would establish a multiyear schedule for further increases. Specifically, the legislation would mandate the following schedule for all Virginia employers:

• $13.75 per hour effective January 1, 2027
• $15.00 per hour effective January 1, 2028

After January 1, 2029, Virginia employers would be required to pay a minimum wage adjusted annually by reference to the Consumer Price Index published by the U.S. Department of Labor’s Bureau of Labor Statistics. Governor Spanberger has signalled a willingness to sign this legislation.

Salary History and Wage Transparency (HB636 and SB215)

Seeking to amplify existing pay equity protections, Virginia is poised to further regulate the considerations Virginia employers are permitted to make when setting pay. Specifically, HB636 and SB215 would prohibit covered employers from: (1) seeking or requiring a prospective employee’s wage or salary history, or (2) relying on prior pay information when setting pay or making hiring decisions. However, these bills include a narrow exception that would permit the voluntary disclosure of wage or salary histories by prospective employees, but only after receiving an offer of employment containing an initial compensation offer. In such instances, the wage or salary history may only be used to support or confirm a wage or salary higher than the initial offer.

Also, and akin to several states with similar provisions, these bills would require that public or internal job postings—including those for promotions or transfers—include a specific wage or salary range. Relatedly, all wage or salary ranges would have to be set in “good faith” and in consideration of the breadth of such range.

HB636 and SB215 would allow aggrieved employees to pursue individual or collective actions for alleged violations, with successful actions carrying statutory damages of between $1,000 and $10,000, or actual damages, whichever is greater, as well as attorneys’ fees, costs, and “any other legal and equitable relief as may be appropriate.” Posting-related claims would be subject to a fifteen-day notice and cure requirement before an action may be brought.

If signed by Governor Spanberger, these requirements will take effect on July 1, 2026.

Virginia Human Rights Act Expansion (SB637)

SB637 would expand the statute of limitations for Virginia Human Rights Act (VHRA) claims and redefine “employer” to potentially subject even very small businesses to claims. At present, the VHRA applies mostly to employers with fifteen or more employees. SB637 would expand this coverage to employers with five or more employees.

Additionally, SB637 would modify the current 300-day limitations period to permit written complaints with the Office of Civil Rights within two years from the date of the alleged discriminatory practice.

This bill would take effect on July 1, 2026.

Protections for Menopause and Perimenopause (SB258 and SB790)

The General Assembly passed a pair of bills adding both workplace protections and health insurance regulations covering menopause as a protected condition. These measures, SB258 and SB790, would introduce new mandates for both workplace accommodations and health insurance coverage.

• SB258 would amend the VHRA to include “menopause or perimenopause” as a protected characteristic, thereby prohibiting employers from discriminating against employees based on these conditions. SB258 would expressly require employers to provide reasonable accommodations for known limitations related to menopause, unless doing so would impose an “undue hardship” on the business.
• SB790 would require health insurers to provide coverage for “medically necessary” treatments for menopause and perimenopause symptoms, such as hot flashes, bone density loss, and sleep disruptions.

If signed into law, SB258 will take effect July 1, 2026. Meanwhile, the insurance mandates under SB790 would apply to policies issued or renewed on or after January 1, 2027.

Au Pair Exemption (SB28)

SB28 would expand Virginia’s overtime requirements to include domestic workers, such as housekeepers and nannies. If signed by Governor Spanberger, these changes will take effect on July 1, 2027.

Ogletree Deakins’ Richmond office will continue to monitor the progress of these bills and will post updates on the Healthcare, Leaves of Absence, Pay Equity, Unfair Competition and Trade Secrets, Virginia, and Wage and Hour blogs as additional information becomes available.

J. Clay Rollins is a shareholder in the Richmond office of Ogletree Deakins.

Sebastian L. Brana is an associate in the Richmond office of Ogletree Deakins.

Sam Sylvester, an administrative assistant in the Richmond office of Ogletree Deakins, contributed to this article.

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