Quick Hits
- The Virginia General Assembly has passed legislation that would ban non-compete agreements for health care professionals.
- HB1 and SB1 would establish a multi-year schedule to raise Virginia’s minimum wage to $15 an hour by January 1, 2028, with additional changes based on the Consumer Price Index beginning in 2029.
- SB258 and SB790 would introduce workplace protections and health insurance coverage for menopause and menopause.
Prohibition of Health Care Arrangement Agreements (Senate Bill (SB) 128)
Along the lines of expanding worker protections, SB128 seeks to expand the existing ban on “low-wage” unions from competing with all “health care professionals.” Current Virginia law prohibits non-compete agreements only with “low-wage workers” or those defined as non-exempt under the Fair Labor Standards Act (FLSA). SB128, however, would prevent employers from entering, forcing, or threatening to force such agreements with any person licensed, registered, or board certified in Medicine, Nursing, Counseling, Optometry, Psychology, or Social Work.
However, SB128 contains the following loopholes:
- Nondisclosure agreements that prevent the misuse of “certain information that the employee has access to,” such as trade secrets and confidential proprietary information.
- Non-compete or other restrictive covenants entered into in connection with the sale of a health care business, provided the restriction is reasonable in scope, time and place.
- Provisions requiring reimbursement of “recruitment-related expenses, including relocation expenses, signing or retention bonuses, and other rewards offered to induce relocation or to establish a practice in a particular area, as well as recruitment, education or training expenses,” will remain in effect as they relate to health professionals for less than five years of employment.
- Non-solicitation agreements that prohibit retiring professionals from soliciting or attempting to solicit their employer’s clients or prospective clients: (1) with whom the retiring health care professional had “material contact in the course of employment”; and (2) for which the health professional will be providing “the same or substantially similar products and services as those provided by the employer.”
SB128 would authorize private individuals to rescind any breach of contract and recover liquidated damages, lost compensation, damages, and reasonable attorneys’ fees and costs, in addition to the $10,000 civil penalty that already exists.
If signed by Governor Spanberger, SB128 will take effect on July 1, 2026.
Minimum Wage Increase (House Bill (HB) 1 and SB1)
Although Virginia’s minimum wage is currently $12.77 after recent inflation adjustments, HB1 and SB1 would create a multi-year 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 will be required to pay the minimum wage adjusted annually based on the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor. Governor Spanberger has indicated his willingness to sign this legislation.
Wage History and Wage Transparency (HB636 and SB215)
Seeking to expand equal pay protections, Virginia intends to regulate what Virginia employers are allowed to do when setting wages. Specifically, HB636 and SB215 would prohibit potential employers from: (1) seeking or requiring a prospective employee’s salary history, or (2) relying on prior salary data when setting salary or making hiring decisions. However, these bills include a narrow exception that would allow voluntary disclosure of salary or earnings history by prospective employees, but only after finding a job with a prior compensation offer. In such cases, the salary or salary history can only be used to support or confirm a higher salary or salary than the original offer.
Also, like several countries with similar provisions, these bills will require that public or internal jobs—including promotions or transfers—include a certain salary or wage. Similarly, all categories of wages or salaries would have to be set in “good faith” even considering the breadth of such categories.
HB636 and SB215 would allow aggrieved workers to bring an individual or collective action for violations, with successful actions carrying legal costs of between $1,000 and $10,000, or actual costs, whichever is greater, plus attorneys’ fees, costs, and “any other legal and equitable relief.” Mail-related claims will be subject to a fifteen-day notice and remedy requirement before action is taken.
If signed by Governor Spanberger, these requirements would go into effect on July 1, 2026.
Virginia Civil Rights Act Extension (SB637)
SB637 would extend the statute of limitations for Virginia Human Rights Act (VHRA) claims and redefine “employer” to include very small businesses in claims. Currently, the VHRA applies mainly to employers with fifteen or more employees. SB637 would extend this protection to employers with five or more employees.
In addition, SB637 would change the current 300-day time limit to allow written complaints with the Office of Civil Rights within two years from the date of the discriminatory practice.
This bill will come into force on 1 July 2026.
Protections for Menopause and Perimenopause (SB258 and SB790)
The General Assembly passed two bills that expand workplace protections and health insurance policies that cover menopause as a covered condition. These measures, SB258 and SB790, will introduce new regulations for 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 specifically require employers to provide reasonable accommodations for known menopause-related disabilities, unless doing so would cause “undue hardship” to the business.
- SB790 would require health insurers to provide coverage for “medically necessary” treatments for menopause and perimenopause symptoms, such as hot flashes, osteoporosis and sleep disturbances.
If signed into law, SB258 would take effect on 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 babysitters. 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 Health, Leave of Absence, Pay Equity, Unfair Competition and Trade Secrets, Virginia, and Wage and Hour blogs as more information becomes available.
J. Clay Rollins is a partner in the Richmond office of Ogletree Deakins.
Sebastian L. Brana is a member of the Richmond office of Ogletree Deakins.
Sam Sylvester, administrative assistant in the Richmond office of Ogletree Deakins, contributed to this article..
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