By Paul E. Knupp III, Esq. and Alixandra Minadeo, Esq.
Lee/Shoemaker PLLC

On April 22, 2026, the Virginia Legislature enacted several new laws that will impact design firms who employ Virginia staff. The laws impose new regulations such as limitations on the enforcement of non-compete clauses, wage transparency requirements, paid leave for a qualified family or medical event, and paid sick leave. These new regulations mark the biggest change to Virginia employment policy since 2020. The regulations are applicable to design firms who employ any individual who works within the Commonwealth of Virginia.

Non-Compete Restrictions
Va. Code §40.1-28.7:8 significantly limits the permissible scope of covenants not-to-compete. A non-compete agreement typically prohibits terminated employees from working in a similar field or practice area in a specific geographical location for some prescribed period of time. Under the new legislation, if an employee is terminated by their employer without cause, the employer is forbidden from enforcing a non-compete; however, if the employer expressly provides for severance or another monetary payment to the employee, then a non-compete clause may still be enforceable. Notably, this new law only addresses employees who are terminated without cause, not employees who are terminated with cause.

Wage Transparency & Salary History
Va. Code §40.1-28.7:12 implements new mandates surrounding wage transparency and salary history of an applicant. First, the bill imposes guardrails on what an employer may ask job applicants during the hiring process. Employers are prohibited from asking applicants about prior wages or salary history with previous employers. The bill defines wage or salary history as “the wage or salary paid to the prospective employee by the prospective employee’s current or previous employer.”

The new law prohibits employers from relying on a job candidate’s wage or salary history when considering them for employment. It further bars employers from penalizing prospective employees for refusing to disclose their salary history, and requires employers to disclose good-faith salary ranges in job postings. This requirement applies to employment opportunities such as public or internal postings for each and every job, promotion, transition, or any other employment opportunity.

Paid Family and Medical Leave
Va. Code §38.2-107.2, §38.2-135, §38.2-316, and §38.2-1800 updates Paid Family and Medical Leave (“PFML”) regulations, set to go into effect on December 1, 2028. This new law provides Virginia workers a financial benefit during family or medical leave for qualifying events, including caring for a new child (including birth, adoption, or foster care), recovering from a serious illness, caring for a family member with a serious illness, or receiving care for domestic violence, sexual assault, or stalking events. During such qualifying life events, eligible workers will be able to take up to twelve weeks of leave. Such leave shall be paid at 80% of the employee’s average weekly wages and the employees’ employment shall be protected. Eligible workers include full time and parttime employees, including self-employed individuals.

The Virginia Employment Commission (“VEC”) will be responsible for establishing the program and will provide additional guidance, such as setting the rates and collecting contributions. The PFML program will be funded through a payroll contribution system in which the employer and employee will contribute. However, small businesses will be exempt from contributing to their employer match. Non-exempt employers and their employees will each be required to furnish 50% of the contribution.

Contingent on VEC’s approval, employers may be excused from the program if they provide employees with a paid family and medical leave benefit equal to or greater than of PMFL’s requirements.

Paid Sick Leave
Va. Code § 40.1-33.6:1-7 requires the accrual of paid sick leave for all employees. Employees must now accrue one hour of paid sick leave for every thirty hours worked with the benefit capped at forty hours per year. Employers have the option to make the forty hours of sick leave available to the employee at the beginning of the year, as opposed to accruing it throughout the year. Employees will qualify for paid sick leave by their employer in events such as experiencing a medical illness or the need for medical diagnosis and treatment. Also, paid sick leave may be provided to the employee in the event of care for a family member with a medical illness.

Conclusions
Design firms will be responsible for maintaining compliance with the newly enacted laws and forthcoming regulations. It is important for design firms who employ Virginia staff to confirm that company policies and procedures are updated, both to avoid penalties and compete for top talent.

Paul E. Knupp III and Alixandra Minadeo are attorneys at Lee/Shoemaker PLLC, a law firm devoted to the representation of design professionals in DC, Maryland, and Virginia. The content of this article was prepared to educate related to potential risks but is not intended to be a substitute for professional legal advice.