State guide Virginia

Virginia Employment Law strategy: final-pay timing, discipline file, and what to sort out first

A cleaner employment law page for Virginia built around final-pay timing, leave paperwork, realistic expectations, and decisions worth slowing down for.

Reviewed January 2026 4 min read Official-source grounded Ver en Espanol En Español
Key Takeaways
  • Virginia Values Act (2020): added sexual orientation + gender identity; lowered threshold to 5 employees; private right of action in Circuit Court
  • Non-compete ban for low-wage workers (Code § 40.1-28.7:7, 2020): non-competes void for employees earning ≤ VA average weekly wage (~$1,290/week)
  • Home Paramount Pest Control v. Shaffer (282 Va. 412, 2011): overbroad non-competes struck entirely — VA courts won't blue-pencil to save overreaching agreements
  • Workers' comp exclusive remedy (Code § 65.2-300): cannot sue employer in tort for workplace injury in most cases; TTD = 2/3 AWW up to ~$1,267/week
  • Lockhart v. Commonwealth Education Systems (1994): at-will presumption stands; handbook alone doesn't create employment contract without explicit language
Key Numbers — Virginia All 50 states →
Filing Deadline 2 years
Fault Rule Contributory Negligence
Insurance System At-Fault
Key Statute Va. Code § 8.01-243
Employment Law guide for Virginia
Photo by Pavel Danilyuk on Pexels

Virginia's employment law landscape changed dramatically in 2020. Before July 1, 2020, the Virginia Human Rights Act (VHRA) had limited protections and the Commonwealth was among the most restrictive states for employee claims. The Virginia Values Act — a comprehensive overhaul signed into law in April 2020 — fundamentally reshaped workplace rights by adding protected categories, dramatically lowering employee thresholds, and expanding available remedies. Virginia employers and employees operating under pre-2020 assumptions about what is and isn't actionable under Virginia law may be significantly wrong.

Virginia remains an at-will employment state under common law: absent a contract providing otherwise, either party may terminate the employment relationship for any reason or no reason, at any time, without notice. The Virginia Supreme Court confirmed this foundational principle in Lockhart v. Commonwealth Education Systems Corp., 247 Va. 98, 439 S.E.2d 328 (1994), and has consistently applied it. However, the at-will doctrine does not permit termination for reasons that violate Virginia or federal anti-discrimination law, public policy exceptions, or specific statutory protections — and those statutory protections expanded significantly in 2020.

Virginia Values Act: Major 2020 Changes to the VHRA

Effective July 1, 2020, the Virginia Values Act amended the VHRA (Code of Virginia § 2.2-3900 et seq.) in several critical ways:

Expanded protected classes: The VHRA now prohibits discrimination based on race, color, religion, national origin, sex, pregnancy, childbirth and related conditions, age (18+), marital status, disability, sexual orientation, gender identity, and status as a veteran. The addition of sexual orientation and gender identity was the most significant expansion — Virginia had no statewide LGBTQ+ employment protection before 2020.

Lowered employee threshold: Prior law exempted small employers from VHRA coverage entirely. The Virginia Values Act lowered the threshold to 5 or more employees for most VHRA claims — meaning the vast majority of Virginia employers are now covered. (Certain provisions apply to employers with 6+ employees for disability claims.) The federal Title VII threshold remains 15 employees, making the VHRA more protective for employees of small businesses in Virginia.

Private right of action: The Virginia Values Act created a direct private right of action in Circuit Court for VHRA violations. Previously, state enforcement was primarily through the Division of Human Rights. Employees can now sue directly in Virginia state court (or continue to pursue federal EEOC/Title VII claims). Remedies include: compensatory damages (back pay, front pay, lost benefits, emotional distress); punitive damages up to $350,000 for malice or reckless disregard; attorney's fees and costs.

Virginia Non-Compete Law: 2020 Restrictions on Low-Wage Workers

Virginia enacted Code of Virginia § 40.1-28.7:7 in 2020, prohibiting non-competition agreements with "low-wage employees" — defined as employees earning wages at or below the average weekly wage for Virginia (approximately $1,290/week as of recent Virginia Employment Commission data, equivalent to roughly $67,000 annually). For employees earning above this threshold, non-competes remain enforceable under Virginia common law standards of reasonableness: a Virginia non-compete agreement must be reasonable in scope (type of work restricted), duration (courts have invalidated agreements exceeding 2 years in most circumstances), and geographic area. In Home Paramount Pest Control Companies v. Shaffer, 282 Va. 412, 718 S.E.2d 762 (2011), the Virginia Supreme Court struck down an overbroad non-compete and reaffirmed that such agreements are disfavored restraints on trade and construed strictly against the employer. For low-wage workers: non-competes are void and unenforceable as a matter of law under § 40.1-28.7:7, and employers who attempt to enforce them face civil penalties and attorney's fee exposure.

Virginia Workers' Compensation

Virginia's Workers' Compensation Act (Code § 65.2-100 et seq.) provides the exclusive remedy for workplace injuries — injured workers generally cannot sue their employers in tort, only through workers' comp. Employers with 3 or more regular employees must carry workers' comp insurance (Code § 65.2-300). Virginia workers' comp covers: medical expenses for work-related injuries; temporary total disability (2/3 of average weekly wage, up to the state maximum of approximately $1,267/week as of 2025); permanent partial or total disability based on impairment ratings. Virginia's workers' comp system is administered by the Workers' Compensation Commission, with appeals to the Court of Appeals and Virginia Supreme Court on legal issues.

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