Virginia Employers, Brace Yourselves: Key Labor Law Changes Coming Soon (and How to Prepare)

The employment landscape in Virginia is shifting. Several key labor law changes are on the horizon, impacting everything from non-compete agreements to workplace safety. Understanding these changes and proactively adjusting your policies is crucial for staying compliant and fostering a positive work environment. Let’s dive into what Virginia employers need to know.

Navigating the Evolving World of Non-Compete Agreements

Virginia is further restricting the use of non-compete agreements, particularly for “low-wage employees.” This is more than just a minor tweak; it’s a significant shift in protecting worker mobility. Starting July 1, 2025, employees entitled to overtime under federal law, regardless of their average weekly earnings (except those predominantly earning commissions, incentives, or bonuses), will be largely shielded from non-compete agreements. This aligns with a national trend of re-evaluating the fairness and economic impact of these agreements. For example, the FTC has proposed a near-total ban on non-compete agreements nationwide. The Federal Trade Commission estimates that banning non-competes could increase workers’ earnings by nearly $300 billion per year.

What This Means for Your Business

Review your employment contracts *now*. Identify positions that might fall under the expanded definition of “low-wage employee.” Consider alternative methods of protecting your business interests, such as robust confidentiality agreements and training programs. Ensure any existing non-compete agreements meet the standards that were in place *when the agreements were signed or renewed*. Agreements entered into or renewed prior to July 1, 2025 are not impacted by these changes.

Pro Tip: Focus on building a company culture that attracts and retains talent. Employees are less likely to leave if they feel valued and have opportunities for growth.

Unemployment Claims: Responding Promptly is Now More Critical Than Ever

The Virginia Employment Commission (VEC) is cracking down on employers who fail to respond to unemployment claims in a timely and adequate manner. A pattern of non-response will now result in increasingly severe penalties, including the loss of appeal rights. A response is considered timely if it’s made within 10 calendar days and adequate if it provides enough facts for a correct decision.

The Three-Strike Rule: Failure to Respond Will Cost You

• First Failure: Warning Letter
• Second Failure: $100 Civil Penalty
• Third Failure: Loss of appeal rights and no credit for overpayment.

Did you know? The VEC must deliver the information request to the address you’ve designated or to your designated attorney to hold you accountable for a timely response.

Increased Unemployment Benefits: Preparing for the Financial Impact

Beginning January 1, 2026, unemployment benefits in Virginia will increase by $52 per week for eligible individuals. This increase, while beneficial for those facing job loss, will impact employer unemployment insurance costs. The Virginia Employment Commission is also studying making annual adjustments to individual weekly benefit amounts based on the average weekly wage. This could lead to further changes in the future.

What to do? Review your budget and anticipate potential increases in your unemployment insurance premiums. Explore strategies to minimize layoffs and maintain a stable workforce. You can also explore state-sponsored programs designed to help companies avoid layoffs through workforce retention efforts.

Protecting Vulnerable Victims: Employer Liability in the Spotlight

A new law aims to protect “vulnerable victims” by potentially holding employers vicariously liable for the actions of their employees in personal injury or wrongful death cases. This applies to actions that occur on or after July 1, 2025.

“Vulnerable victim” is defined broadly and can include patients of healthcare providers, individuals with disabilities, residents of assisted living facilities, and passengers of common carriers, among others.

What Employers Need to Prove to Avoid Liability

The victim (or their representative) bears the burden of proof and must demonstrate all of the following:

• The employee was reasonably likely to come into contact with the vulnerable victim, and the employee’s tortious conduct proximately caused the victim’s personal injury or wrongful death.
• The employer failed to exercise reasonable care to (i) prevent the employee’s intentional harm toward the vulnerable victim or (ii) control the employee, which resulted in an unreasonable risk that the vulnerable victim would suffer personal injury or wrongful death.
• The employer knew or had reason to know of the liability to control the employee.
• The employer knew or had reason to know of the necessity and opportunity to exercise such control over the employee.

Action Item: Review your hiring practices, employee training programs, and risk management strategies. Implement comprehensive background checks, provide thorough training on appropriate conduct, and establish clear reporting procedures for potential issues.

Workplace Safety in Hospitals: A New Era of Accountability

Virginia hospitals are now required to implement robust workplace violence incident reporting systems, including detailed record-keeping, analysis, and reporting to the Department of Health. This initiative is designed to improve safety for healthcare workers and prevent future incidents. Hospitals must document, track, and analyze any incident of workplace violence reported.

Key Components of the Reporting System

• Documenting the date, time, and description of the incident.
• Identifying the perpetrator (patient, visitor, employee, etc.) and the location of the incident.
• Detailing the response to the incident, including whether law enforcement was contacted.
• Quarterly reporting to the chief medical officer and chief nursing officer.
• Annual reporting to the Department of Health.

Takeaway: Ensure your hospital has a comprehensive workplace violence prevention plan in place. Train employees on de-escalation techniques, risk identification, and violence prevention planning. Consult resources from OSHA and other organizations to develop best practices. OSHA provides guidelines for preventing workplace violence in healthcare settings.

Child Labor Protections in the Digital Age: Safeguarding Young Content Creators

Reflecting the growing importance of online content creation, Virginia has enacted specific provisions to protect the wages of children involved in this industry. This law requires content creators to maintain detailed records of their child’s involvement and set aside a percentage of gross earnings into a trust account.

Key Requirements for Content Creators

• Maintain records of the child’s age, number of videos, minutes featured, and total compensation.
• Deposit a percentage of gross earnings into a trust account accessible to the child at 18.

Why this matters: This law is a crucial step in ensuring that young content creators are fairly compensated for their work and that their financial futures are protected. It acknowledges the unique challenges and opportunities presented by the digital economy.

Barbershops and Cosmetology Salons: Expanding Opportunities for Young Apprentices

Virginia is expanding opportunities for young people to work in barbershops and cosmetology salons. Children aged 16 and older, who are enrolled in registered apprenticeships, employed under valid work-training programs, or holding cosmetology or barber licenses, can now work in licensed establishments.

Benefits of this Change

This change provides valuable work experience for young people pursuing careers in the beauty industry. It also helps address workforce shortages in these fields.

FAQ: Virginia Employment Law Changes

When do the new non-compete restrictions take effect?

July 1, 2025.

What happens if I don’t respond to unemployment claims on time?

You could face penalties, including the loss of appeal rights.

How much will unemployment benefits increase?

By $52 per week, starting January 1, 2026.

Who is considered a “vulnerable victim” under the new law?

Patients of healthcare providers, individuals with disabilities, residents of assisted living facilities, passengers of common carriers, and others.

What records do hospitals need to keep regarding workplace violence?

Detailed records of each incident, including the date, time, description, and response.

What is the statue of limitations to commence a civil action for child content creators?

No more than two years after the child has reached 18 years of age.

Stay informed, stay compliant, and proactively address these changes to create a thriving and equitable workplace in Virginia.

What are your thoughts? Share your concerns and strategies for adapting to these new regulations in the comments below.

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