By: David Griffin, Marketing & Communications, Mount Vernon Springfield Chamber of Commerce
Virginia businesses have several new requirements and upcoming changes to keep on their radar, from the way jobs are advertised to employee benefits, retirement programs and taxes. At our September Business Breakfast at Dave & Buster’s in Springfield, Chamber members heard from R. Douglas Taylor, Jr., shareholder at Bean, Kinney & Korman, P.C., and Robert “Bob” LeMay, CPA, principal of LeMay & Company.
Taylor walked members through recent changes to Virginia employment law and some of the practical ways they could affect employers. LeMay followed with three items for businesses to put on their calendars: Paid Family & Medical Leave, RetirePath and the Pass-Through Entity Tax.
Here are some of the highlights from the morning.
Pay Transparency Is Already Here in Virginia
As of July 1, 2026, Virginia employers must include the wage, salary or a good-faith pay range in public and internal postings for jobs, promotions, transfers and other opportunities. The requirement applies broadly, with no minimum employee-count threshold.
Doug Taylor discusses pay transparency at the September Business Breakfast
There are changes to the hiring process as well. Employers may not seek an applicant’s prior salary history or retaliate against someone for asking about a pay range or declining to provide salary history.
For businesses, this makes now a good time to check job posting templates, recruiter scripts and internal job opportunities, along with how salary ranges are established and documented.
Preparing for New Heat Safety Rules
Virginia is working on new rules to protect workers from heat-related illness. The Safety and Health Codes Board and Department of Labor and Industry have until May 1, 2028, to put the standards in place.
Many of the details still need to be worked out, but employers can expect requirements around water, shade or cooling areas, rest breaks, employee training and procedures for responding to heat-related illnesses.
The law reaches employees, independent contractors and other laborers when an employer controls the conditions at the worksite. Businesses with employees working in hot environments can use the time before the regulations are finalized to identify where heat exposure may be a concern and who within the organization will be responsible for addressing it.
New Wage Liability for the Construction Industry
Construction businesses have another change to pay attention to. For Virginia construction contracts entered into after July 1, 2026, the new requirements generally apply to projects valued at more than $500,000, excluding single-family residential projects.
General contractors and subcontractors could be held responsible for unpaid wages if they knew, or should have known, there was an issue. That can lead to additional costs beyond the unpaid wages, including interest, damages and attorneys’ fees.
For companies affected by the law, Taylor pointed to subcontract terms, payroll visibility, audit rights and documentation as areas worth reviewing. Businesses should also make sure the people overseeing projects know what warning signs to look for.
What the Clean Slate Law Means for Hiring
Another discussion focused on something many employers routinely ask about during hiring: criminal history.
Virginia’s Clean Slate Law seals certain eligible criminal records so they are no longer publicly available. Applicants generally may deny or omit a sealed matter, and covered employers cannot require applicants to disclose sealed arrests, charges or convictions.
Employers may need to make some changes to their hiring process as a result. If an application asks about criminal history, it must include the required notice about sealed records. Hiring teams should also know which questions are permitted, and businesses that use background checks should make sure their screening provider is properly handling sealed records.
Specific legal, regulatory and security exceptions may apply.
Noncompete Agreements Have Changed Too
Businesses that use noncompete agreements may need to revisit their current templates. Virginia’s changes apply to agreements entered into, amended or renewed on or after July 1, 2026. The existing prohibition on noncompetes for low-wage employees remains in place, including for nonexempt employees regardless of earnings.
Taylor also highlighted a change involving employees who are terminated without cause. In those cases, a noncompete is unenforceable unless severance or another payment is provided and disclosed when the agreement is signed.
That makes the agreement itself only part of the picture. Employers also need to consider how their noncompete, termination and severance practices work together.
Paid Family & Medical Leave: A Longer-Term Change to Start Planning For
LeMay’s portion of the breakfast looked further ahead, beginning with Virginia’s Paid Family & Medical Leave program.
Robert LeMay spoke on Paid Family & Medical Leave
Eligible workers will be able to receive up to 12 weeks per year, with benefits of up to 80% of average weekly wages, subject to a state cap. Reasons for leave can include welcoming a child through birth, adoption or foster care; a serious health condition affecting the employee or a family member; certain military family needs; and needs related to domestic violence.
This change will arrive in stages rather than all at once:
- October 1, 2027: Rates are expected to be published
- January 1, 2028: Program administration begins
- April 1, 2028: Employer contributions begin
- December 1, 2028: Benefits become available
LeMay’s presentation identified an employer threshold of 11 or more employees and noted that eligibility includes full- and part-time workers. Self-employed individuals may also participate if they pay into the program.
With implementation still more than a year away, businesses have time to account for the program in future budgets, payroll planning and employee communications.
RetirePath Now Reaches Smaller Employers
RetirePath is a much more immediate item for some Chamber members. After July 1, 2026, Virginia lowered the threshold from 25 employees to five employees. Businesses with five or more employees generally need to participate unless they already offer a qualifying retirement plan.
Under the program, employees start with an automatic 5% contribution that increases one percentage point each year until it reaches 10%. Employees can change that amount or opt out, and LeMay’s presentation noted that employers are not required to make contributions.
The dates are particularly important:
- 10–24 employees: September 30 registration deadline
- 5–9 employees: October 30 registration deadline
The state will send letters based on Virginia Employment Commission reporting that businesses can use to register. LeMay advised employers to confirm their employee count, determine whether an existing retirement plan qualifies for an exemption and watch for that state notice. Potential penalties can reach $200 per employee, per year.
PTET Is Now a Permanent Tax Planning Option
The final topic shifted from employee requirements to tax planning for business owners. Virginia’s Pass-Through Entity Tax, or PTET, was originally scheduled to expire in December 2025 and was later extended through December 2026. It has now been made permanent.
The basic idea is that the business pays Virginia tax on behalf of a partner or shareholder, which changes where the Virginia tax deduction lands. Depending on the owner’s situation, this may provide a benefit when the Schedule A state-tax deduction is limited.
Unlike some of the other changes discussed at the breakfast, this is not simply a new requirement to check off. Whether PTET makes sense depends on the business and its owners. LeMay pointed to cash flow, owner mix, estimated payments and election timing as factors to consider when running the numbers.
Putting the Changes on Your Calendar
Some of these changes are already in effect. Others will not arrive for another year or more. The common thread from the breakfast was the value of knowing what is coming before a deadline forces a business to react.
For some employers, the first step may be as simple as reviewing job postings or checking whether RetirePath applies to them. Others may need to look more closely at employment agreements, hiring procedures, construction contracts, payroll systems or future benefit costs.
Businesses should work with their legal, accounting, HR and other professional advisors to determine which requirements apply to their particular circumstances.
Download the Presentations
Want to go back through what was covered at the breakfast? Both speaker presentations are available below.
Download Douglas Taylor, Jr.’s presentation: Topics include pay transparency, heat illness prevention, construction wage liability, the Clean Slate Law and noncompete restrictions.
Downloads Robert LeMay’s presentation: Topics include Paid Family & Medical Leave, RetirePath and Virginia’s Pass-Through Entity Tax.
Thank you to Doug Taylor and Bob LeMay for sharing their expertise and helping Chamber members get a better understanding of what these changes could mean for their businesses.
This article summarizes information presented at the Mount Vernon Springfield Chamber’s September 2026 Business Breakfast and is provided for general informational purposes. Businesses should consult the appropriate legal, accounting, tax or HR professionals regarding their individual circumstances.