Hiring Laws in Virginia

Virginia employment laws strike a balance between worker protection and business flexibility, featuring a progressive approach to minimum wage increases and comprehensive anti-discrimination protections. The state’s Virginia Department of Labor and Industry (DOLI) and the Office of Civil Rights of the Department of Law oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Virginia employment law is its modernized approach to anti-discrimination protections through the Virginia Values Act (passed in 2020) and its scheduled minimum wage increases up to $15 per hour by 2026, with future adjustments based on the Consumer Price Index. Virginia provides robust protections that in many cases exceed federal requirements.

These rules reflect Virginia’s commitment to comprehensive worker protections combined with clear compliance pathways for employers.

Virginia Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Virginia Human Rights Act (VHRA), strengthened by the Virginia Values Act of 2020, prohibits discrimination in all aspects of employment based on race, color, religion, sex, sexual orientation, gender identity, pregnancy, childbirth, related medical conditions (including lactation), national origin, age, marital status, disability, and military status.

The VHRA applies to employers with more than five employees for wrongful discharge based on race, color, religion, national origin, status as a veteran, sex, sexual orientation, gender identity, or marital status. For age discrimination, the prohibition covers employers with more than five and fewer than 20 employees (the federal ADEA covers employers with 20+ employees). For all employment actions (not just discharge), the VHRA applies to employers with 15+ employees.

Why coverage for employers with 5+ employees?

Virginia’s approach differs significantly from federal Title VII, which applies only to employers with 15+ employees. Virginia’s lower threshold reflects the state’s policy to extend anti-discrimination protections to employees in smaller organizations, recognizing that discrimination can occur regardless of company size.

Additional state protections: Virginia law requires employers to accommodate known limitations during pregnancy, childbirth, or related medical conditions (including lactation) unless it poses undue hardship. Employers are also required to provide reasonable accommodations for individuals with disabilities unless it causes undue hardship. Employers must maintain written policies addressing non-discrimination and equal employment opportunity.

Pay Equity and Minimum Wage

Virginia’s minimum wage is $12.41 per hour as of January 1, 2025. The new adjusted state hourly minimum wage is $12.77, effective January 1, 2026, in accordance with Virginia law § 40.1-28.10(F). For January 1, 2027, and thereafter, the annual minimum wage shall be adjusted to reflect increases in the consumer price index (CPI-U).

• Virginia’s minimum wage schedule: Legislation from the 2020 General Assembly session enacted increases to $9.50 per hour effective May 1, 2021; to $11.00 per hour effective January 1, 2022; to $12.00 per hour effective January 1, 2023; and $15.00 per hour effective January 1, 2026. This represents a significant evolution from the state’s prior wage freeze—Virginia had not increased its minimum wage since 2009.
  For more details, visit the Virginia Department of Labor and Industry Minimum Wage Page.
• Tipped employees: Under the Fair Labor Standards Act, an employer may pay a tipped employee no less than $2.13 per hour, but their total earnings (the combination of wages and tips received) must meet Virginia’s minimum wage. Tipped employees are defined as those who regularly receive over $30.00 per month in tips. This means Virginia employers must guarantee tipped employees earn the full state minimum wage even if tips fall short.
• Youth minimum wage: Employers may pay a training/youth minimum wage at a reduced rate to employees under 20 during their first 90 consecutive days of employment, subject to federal guidelines.

Virginia follows federal equal pay requirements. The Virginia Wage Payment Act includes a private right of action for failure to pay wages, and if a court finds the employer “knowingly failed to pay wages,” the court must award “triple the amount of wages due and reasonable attorney fees and costs”.

Background Checks and Criminal History Rules

Virginia does not have a statewide ban-the-box law at the private employer level. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, employers should be aware of certain limitations—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

Public sector ban the box: Virginia implemented a ban-the-box policy in 2017 that removed the criminal history checkbox from all public sector job applications.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Virginia employers are required to verify the identity and employment eligibility of new hires using Form I-9. Employers must complete Form I-9 within three business days of a new hire’s start date and retain forms for three years after hire or one year after termination, whichever is later.

State-Specific Hiring Rules

Virginia enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Virginia

Virginia takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties enforced by the U.S. Department of Labor. Violations can result in back wages, liquidated damages (double the unpaid wages), and attorney fees.
• Discrimination Violations: If an employer commits unlawful discrimination, employees can file complaints with the Virginia Division of Human Rights (DHR). After investigation, DHR issues a notice of right to sue, and employees may file in a Virginia district court within 90 days of receiving this notice. The Virginia Values Act significantly increases an employer’s exposure for employment discrimination claims by expanding the coverage of the VHRA, creating new state causes of action for discrimination, and expanding available remedies.
• Wage Retaliation Violations: Employers may not discipline, penalize, discharge, discriminate, or threaten to discharge/penalize/discipline any employee because they engaged in protected activity. Employees have one year from the date of the alleged retaliation to bring a civil claim against the employer in state court.
• Employee Lawsuits: Employees can file complaints with the Office of Civil Rights or pursue civil lawsuits for discrimination or retaliation. To preserve claims, employees must file with the Office of Civil Rights within 300 days of the alleged discriminatory practice.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).
• Misclassification Violations: Virginia Code § 40.1-33.1 prohibits the discharge or retaliation against an employee or independent contractor for filing a complaint about misclassification.

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
• New Hire Reporting to DOLI- All new hires and rehires must be reported to the Virginia New Hire Reporting Center within 20 days of their hire date. Employers who submit reports magnetically or electronically shall submit the reports in two monthly transmissions not more than 12-16 days apart. Reports should be submitted to the Virginia New Hire Reporting Center and should include the employee’s name, address, Social Security number, date of birth, date of hire, and the employer’s Federal and State ID numbers.
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to display clear, written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Virginia Human Rights Act.
• Wage Discussion Protection Documentation- Maintain records demonstrating compliance with wage sharing protection laws. Employers should document that employees are aware of their rights to discuss wages without retaliation.
• Retention of Job Applications and Interview Notes- Virginia employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. The Virginia Department of Labor and Industry requires these records to be kept for at least three years and made available during audits or investigations.
• Posters and Workplace Notices- Certain notices, such as those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, wage sharing protection, and employee rights must be displayed prominently in the workplace. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees. Posters are available through the DOLI.