Virginia Legislation Update: Minimum Wage and Paid Sick Leave
Minimum Wage
On April 9, 2026, Governor Spanberger signed SB1/HB1 into law, raising Virginia’s minimum wage to $13.75 per hour effective January 1, 2027, and subsequently to $15.00 per hour on January 1, 2028. Beginning January 1, 2029, the law annually adjusts the state minimum wage to reflect increases in the Consumer Price Index.
These are the first bills introduced in both chambers in the Virginia General Assembly’s legislative session, a signal that adjusting Virginia’s minimum wage was a top policy priority of the Virginia General Assembly. The fact that the first bill in both chambers was an increase in the minimum wage shows state lawmakers’ intent to be more employee friendly. Governor Spanberger herself promoted the law as a tool to mend a gap between wages and rising costs.
Paid Sick Leave
Governor Spanberger also signed HB5/SB199 into law on May 20, 2026, requiring employers to provide one hour of sick leave to Virginia employees for every 30 hours worked, with an annual cap 40 hours of sick leave per year. Employers are free to set a higher cap on accrued hours, and any unused sick leave hours carry over into the next year. The law will take effect in July 2027. To date, eighteen states (including Washington, D.C.) have paid sick leave laws.
In addition to allowing sick leave to be used for an employee’s or family member’s medical needs, the law also allows employees to use sick leave to relocate or secure victim aid services for domestic abuse, sexual assault, or stalking. Employers cannot ask for these details or any details about an employee’s or their family member’s health information as a condition of granting sick leave.
Employees who are exempt from overtime requirements under the Fair Labor Standards Act are assumed to work 40 hours per workweek for purposes of sick leave accrual, unless their actual workweek is less than 40 hours.
The law also allows employees to request sick leave verbally, in writing, by electronic means, or other methods acceptable to the employer. Employees only have to provide a duration for their leave “when possible.” However, if the need for sick leave is foreseeable, employees must “make a reasonable effort” to provide their sick leave schedule in advance so it does not unduly disrupt the employer’s operations. Employees do not have to find a replacement worker to cover for them during sick leave. For paid sick leave lasting three or more consecutive workdays, employers can request “reasonable documentation” such as a doctor’s note, police report, or court document to justify the need for sick leave.
Employers who violate the new sick leave law are subject to a civil penalty of up to $150 for the first violation, up to $300 for a second violation, and $500 for all subsequent violations. The bill also allows employees to bring civil actions against their noncompliant employers and potentially recover double the amount of unpaid sick leave, plus damages.
The law will not apply to all employers immediately. Upon taking effect in July 2027, the law will define “employer” as an employer with at least 50 employees, meaning only these employers will be required to provide sick leave. Beginning January 2028, however, “employer” will be defined as an employer with at least 25 employees. Beginning January 2029, “employer” employers with at least one employee will be classified as an employer under the new law. This means that the law will initially apply only to larger employers but will gradually apply to smaller and smaller employers over time.
Employer Takeaways
Employers with Virginia-based personnel should prepare for Virginia’s minimum wage increases when adjusting current employees’ wages and setting wages for new employees.
These employers should also consider their company size when determining when they must abide by the new sick leave law, and plan accordingly.
Keep in mind what materials employers are allowed to request from employees when granting sick leave, when these requests can be made, and the means by which employees can ask for sick leave in the first place, as well as the various circumstances where an employee can raise a private right of action against their employer.
Be prepared to diligently track accrued sick leave hours and consider whether to adopt a more generous leave policy than what the new Virginia law provides.
