Virginia Expands Pay Transparency Protections: What Employers Need to Know Before July 1, 2026

Virginia employers should begin preparing now for a major shift in hiring and compensation practices. Beginning July 1, 2026, a new Virginia law will require employers to disclose wage ranges in job postings and prohibit employers from requesting or relying upon a candidate’s salary history during the hiring process.

The legislation, Senate Bill 215, reflects a growing nationwide movement toward pay transparency and compensation equity. Employers operating in Virginia should take immediate steps to review hiring policies, application materials, interview procedures, and job posting practices to ensure compliance before the law takes effect.

What the New Law Requires

Under the new law, Virginia employers will be prohibited from:

Requesting a prospective employee’s wage or salary history;
Relying on wage or salary history when making hiring decisions;
Using prior compensation to determine a new employee’s compensation;
Retaliating against applicants or employees who request wage information or refuse to disclose salary history; and
Refusing to interview, hire, employ, or promote an individual because they declined to provide salary history information.

In addition, employers will now be required to include a good-faith wage, salary, or compensation range in both internal and external job postings for:

New positions;
Promotions;
Transfers; and
Other employment opportunities.

The law applies broadly and represents one of the most significant pay transparency reforms enacted in Virginia to date.

Salary History Questions Are Effectively Eliminated

Historically, many employers relied on prior compensation information during salary negotiations and hiring discussions. Senate Bill 215 changes that landscape entirely.

Moving forward, employers may not ask applicants about prior compensation, whether verbally, through written applications, or during background or reference checks.

Importantly, the law also prohibits employers from relying on salary history information when determining compensation offers.

There is, however, a narrow exception. If a prospective employee voluntarily discloses their salary history without prompting, the employer may confirm that information and may use it to support a higher compensation offer.

This distinction is critical. Employers should ensure managers and recruiters understand the difference between voluntary disclosure and prohibited inquiry.

New Wage Range Posting Requirements

Perhaps the most visible change under the law is the requirement that employers disclose compensation ranges in job postings.

The law requires employers to provide a “good-faith” wage or salary range for the position being advertised. While the legislation does not precisely define what constitutes “good faith,” employers should expect scrutiny if posted ranges are unrealistic, misleading, or disconnected from actual compensation practices.

Employers should consider:

Conducting compensation audits;
Establishing standardized pay bands;
Reviewing internal pay equity issues;
Training hiring managers on compliant communications; and
Ensuring recruiters and third-party staffing agencies comply with the law.

The inclusion of compensation information in internal postings is also significant because it may increase employee scrutiny regarding internal pay disparities and promotional opportunities.

Anti-Retaliation Protections

The statute also includes broad anti-retaliation protections.

Employers may not retaliate against applicants or employees who:

Request compensation information;
Discuss wage ranges;
Decline to provide salary history; or
Assert rights under the statute.

As a practical matter, employers should review policies relating to confidentiality, compensation discussions, and employee discipline to ensure they do not inadvertently violate the law.

Potential Liability for Employers

The law creates a private right of action, meaning both current and prospective employees may file civil lawsuits for violations.

Individuals may seek actual damages if they bring claims within one year of the alleged violation.

In addition, the Virginia Attorney General may bring enforcement actions against employers and seek civil penalties of:

Up to $1,000 for a first violation; and
Up to $5,000 for subsequent violations.

Given the relatively low threshold for enforcement exposure, even technical violations may create unnecessary legal and reputational risk for employers.

Safe Harbor for Job Posting Violations

The law does provide employers with a limited safe harbor provision for compensation posting violations.

If an employer receives notice that a job posting violates the statute and corrects the posting within 15 days, the employer may avoid liability for that specific violation.

Nevertheless, employers should not rely on the safe harbor as a compliance strategy. Instead, businesses should proactively update their hiring practices before the law becomes effective.

What Employers Should Do Now

Virginia employers should begin preparing immediately by:

Revising employment applications;
Removing salary history questions;
Updating recruiter and HR training materials;
Reviewing compensation structures and pay ranges;
Auditing existing job posting templates; and
Consulting employment counsel regarding compliance strategies.

Businesses operating in multiple jurisdictions should also recognize that Virginia joins a growing number of states implementing aggressive pay transparency requirements. Multi-state employers may benefit from adopting uniform nationwide hiring policies rather than maintaining inconsistent state-by-state practices.

Final Thoughts

Virginia’s new pay transparency law represents a substantial shift in how employers approach hiring and compensation discussions. While the law is designed to promote pay equity and transparency, it will also create new compliance obligations and litigation risks for employers who fail to adapt.

Employers should treat the July 1, 2026 effective date as an opportunity to modernize compensation practices, strengthen hiring procedures, and reduce potential exposure before enforcement begins.

Businesses with questions regarding compliance, hiring practices, employee policies, or pay transparency obligations should consult experienced employment counsel to ensure they are prepared for the new requirements.