Virginia HR Consulting & Employment Law for Small Businesses

Virginia significantly expanded its employee protections in 2020 with the Virginia Values Act, which added new protected classes and lowered the employer size threshold for anti-discrimination coverage to 5 employees.

Virginia employers navigate a more complex environment since 2020. The Virginia Values Act broadened anti-discrimination protections to include sexual orientation and gender identity and applied them to employers with 5 or more employees. Virginia also restricts non-competes for low-wage workers, has a rising minimum wage, and enacted the Virginia Overtime Wage Act, which interprets overtime rules differently from the FLSA.

Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.

Key Virginia Employment Laws

Virginia Values Act

The Virginia Values Act (2020) significantly expanded the Virginia Human Rights Act to apply to employers with 5 or more employees, cover sexual orientation and gender identity, and provide a private right of action with expanded remedies. It is now one of the most comprehensive state anti-discrimination statutes in the South.

Virginia Non-Compete Restriction for Low-Wage Workers

Virginia prohibits non-compete agreements for 'low-wage employees,' defined as employees earning at or below the average weekly wage for Virginia (approximately $1,291/week or $67,000/year as of recent calculations). Non-competes for higher earners remain enforceable with a reasonableness test.

Virginia Overtime Wage Act

Virginia's Overtime Wage Act (enacted 2021) creates a state-level overtime claim with different calculation rules than the FLSA. Employers must ensure their overtime calculation methods comply with both federal FLSA and Virginia VOWA requirements, as the state law provides additional remedies.

Virginia Minimum Wage

Virginia has enacted a schedule of minimum wage increases above the federal floor, reaching $12/hour and rising further. Future increases are subject to legislative action. Employers in Virginia must track annual rate changes.

Compliance Thresholds for Virginia Employers

1+ Employees: employees

  • Virginia minimum wage applies (above federal, rising annually)
  • At-will employment broadly recognized

5+ Employees: employees

  • Virginia Human Rights Act applies
  • Virginia Values Act anti-discrimination protections (race, sex, sexual orientation, gender identity, and more)

50+ Employees: employees

  • Federal FMLA applies
  • ACA employer mandate
  • COBRA obligations

Common Questions About Virginia Employment Law

How did the Virginia Values Act change employment law?

The Virginia Values Act (2020) expanded anti-discrimination protections to employers with 5+ employees, added sexual orientation and gender identity as protected classes, and created a private right of action allowing employees to sue directly without filing with the state agency first. It significantly increased compliance stakes for small Virginia employers.

Does Virginia restrict non-compete agreements?

Yes, for lower earners. Virginia prohibits non-competes for employees earning at or below Virginia's average weekly wage (approximately $67,000/year). For higher earners, non-competes are enforceable with a reasonableness test. Employers must disclose the terms in writing at the time of the agreement.

What is the Virginia Overtime Wage Act?

Virginia's VOWA provides state-level overtime protections and may be more favorable to employees than the federal FLSA in some calculation scenarios. Employers in Virginia must comply with both laws. VOWA violations carry a 3-year statute of limitations versus 2 years under federal law.

What is the Virginia minimum wage?

Virginia's minimum wage is above the federal floor and rising under a scheduled increase program. The rate adjusts on January 1 each year. Check the Virginia Department of Labor and Industry for the current rate and future schedule.

Does Virginia require paid leave?

Virginia does not have a statewide paid sick leave or paid family leave mandate for most private employers. However, state and local government employees have more robust leave protections. Federal FMLA provides 12 weeks of unpaid leave for eligible employees at covered employers.

Need HR support in Virginia?

TalentForge360 serves employers nationwide. Fractional HR from $1,199/month. Free consultation.