Virginia employers face a significant shift in workforce compliance obligations taking effect on July 1, 2026. A new state law imposes pay transparency requirements on job postings and materially expands the reach of Virginia's non-compete restrictions. Together, these changes will require prompt attention to hiring practices, employment agreements, and separation protocols to reduce exposure to liability.
Under the pay transparency component, Virginia employers must include a wage or salary range in all job postings. This obligation is not limited to external recruitment. It also applies to postings for promotions and internal transfers, meaning that internal talent movement processes should be reviewed alongside external hiring workflows. Employers should audit posting templates across applicant tracking systems, careers pages, third-party job boards, and internal mobility platforms to confirm that compensation disclosures are consistently included and consistent with the employer's actual pay practices.
The law also broadens the scope of employees who cannot lawfully be bound by non-compete agreements. Notably, the restrictions now extend to healthcare workers licensed by several Virginia state boards. As a result, employers in hospital systems, physician groups, ambulatory settings, and other clinical environments will have more limited ability to restrict post-employment competitive activity for a wider range of licensed clinical staff. Existing template agreements and onboarding documents used for these workers should be re-evaluated to confirm enforceability under the updated framework.
Separation practices are equally important. Non-compete agreements will not be enforceable against employees who are laid off without severance benefits. This makes severance decisions during reductions in force a critical factor in preserving restrictive covenant protections. Employers should coordinate legal, human resources, and finance functions before finalizing layoff plans, and should evaluate whether providing severance is warranted to maintain enforceability of otherwise valid restrictions.
To prepare, employers should update job posting templates, revise offer letters and non-compete forms, retrain recruiters and hiring managers, and align separation playbooks with the new enforceability rules. Documentation of compliant practices will be important if disputes later arise.
This article is provided for general informational purposes only and does not constitute legal advice. Clients should seek tailored guidance regarding their specific circumstances before taking action.