Virginia Pay Transparency Law: What Employers Need to Know

Pay transparency laws continue to gain momentum across the country, and employers are quickly learning that compensation practices are no longer just an internal HR matter. States are increasingly requiring employers to disclose salary ranges, limit salary history inquiries, and provide employees with greater visibility into pay practices. Virginia is the latest state to be added to the growing list.

Top Takeaways for HR

• Virginia’s pay transparency law is effective on July 1, 2026 and Virginia joins Washington as one of the only states where applicants or employees can directly file private lawsuits for job-posting violations; because this drastically increases class-action and litigation exposure, HR must treat this as a high-priority risk area rather than a minor job-board formatting exercise.
• Unlike other jurisdictions that exempt small businesses, Virginia's pay transparency and strict salary history bans apply to all employers operating in or recruiting into the Commonwealth, including remote companies with a single potential Virginia-based candidate; your recruiting workflows, recruiter scripts, and applicant tracking systems must be standardized immediately to eliminate past wage inquiries.
• To survive scrutiny from the Virginia Attorney General, HR must establish salary bands using documented, referenceable metrics, rather than arbitrarily broad numbers.

Overview of the Law and Requirements

Virginia’s new pay transparency requirements were enacted through SB 215 and HB 636 and are scheduled to take effect on July 1, 2026.

The law introduces several new requirements designed to increase pay equity and provide applicants and employees with greater access to compensation information during the hiring process.

At a high level, this law will require covered employers to:

• Include compensation ranges in job postings
• Provide wage or salary information in good faith
• Stop requesting salary history from applicants
• Avoid retaliating against employees or applicants who exercise their rights under the law

The legislation also reflects a broader national trend toward compensation transparency and equitable hiring practices.

A few key themes of the law include:

• Employers need clearly defined compensation structures before posting positions
• Recruiters and managers need to understand what can and can’t be discussed during hiring
• Transparency and consistency are becoming central parts of modern HR compliance practices

Who Must Comply?

The law refers to any “employer,” defined in the Virginia Code as “an individual, partnership, association, corporation, legal representative, receiver, trustee, or trustee in bankruptcy doing business in or operating within this Commonwealth who employs another to work for wages, salaries, or on commission and shall include any similar entity acting directly or indirectly in the interest of an employer in relation to an employee.”

In summary, the law applies to employers doing business in Virginia and posting jobs for positions that may be performed in the state, regardless of the number of employees they have.

This includes:

• Employers headquartered in Virginia
• Multi-state employers with Virginia employees
• Remote employers hiring Virginia-based workers

Because remote hiring has “blurred” geographic boundaries, companies outside Virginia may still fall under the law if a position can be performed by a Virginia resident.

If you’re managing multi-state recruiting, this creates another layer of compliance complexity that shouldn’t be overlooked.

For example, how would you answer this question:

“We only have one remote employee in Virginia. Do we still need to comply?”

In most cases, the answer is yes. If the position can be performed in Virginia, the law may apply.

What are the Legal Requirements for Employers?

So, what exactly does Virginia’s new pay transparency law require? Let’s break it down.

1. Salary Range Disclosure Requirements

One of the biggest changes under the Virginia Pay Transparency law is the requirement to disclose compensation ranges in job postings.

Starting July 1, 2026, employers must include:

• Wage or salary ranges
• A general description of benefits or other compensation, if applicable

The compensation range must be provided in “good faith,” meaning employers can’t post unrealistic or intentionally broad ranges simply to satisfy the requirement.

These disclosure requirements apply to both:

• External job postings
• Internal promotional opportunities or transfer postings

This means your compensation structures must be clearly defined before positions are posted publicly or internally.

Organizations that currently rely on flexible or loosely defined compensation practices may need to formalize salary bands and approval processes well in advance of the law’s effective date.

2. Restrictions on Salary History Inquiries

Virginia’s new law also places restrictions on salary history inquiries during the hiring process.

Under the law, employers may not:

• Ask applicants about prior compensation
• Require salary history disclosure as a condition of employment
• Screen candidates based on prior wages
• Rely on salary history to determine compensation offers

These restrictions are intended to help reduce historical pay inequities that can follow employees from one role to the next.

Many employers across the country have already begun eliminating salary history questions from applications and interview processes due to similar laws in other states. For companies that have not yet made these changes, now is the time to review:

• Employment applications
• Recruiter scripts
• Interview guides
• Background check authorization forms
• Applicant tracking system workflows

The law also prohibits employers from refusing to interview, hire, employ, or promote an individual, or otherwise retaliating against a prospective or current employee, because the individual did not provide wage or salary history or requested a wage or salary range.

It’s important to note that if an applicant voluntarily discloses salary history, employers can’t use it to determine pay, but they may use it to support a higher offer.

3. Employee and Applicant Rights

The law also creates specific protections for applicants and employees. Individuals are protected from retaliation for:

• Requesting compensation information
• Discussing wages
• Refusing to disclose salary history
• Exercising rights under the law

This means employers should carefully evaluate workplace policies that could discourage compensation discussions or create the appearance of retaliation.

Managers, recruiters, and any other key players involved in interviewing or onboarding should also receive training on appropriate responses when employees raise concerns about compensation transparency or pay equity. The training should be updated and delivered regularly.

4. Recordkeeping and Compliance Obligations

Although the law does not currently impose extensive pay data reporting requirements, employers should expect documentation to play a major role in compliance.

You and your HR teams should maintain records related to:

• Job postings
• Compensation ranges
• Hiring decisions
• Promotion opportunities
• Pay structures
• Salary determinations

Strong documentation can help demonstrate that compensation ranges were established in good faith and applied consistently.

Employers should also consider conducting internal compensation audits before the law takes effect to identify potential inconsistencies or unexplained pay disparities.

Penalties for Noncompliance

Virginia’s new law includes enforcement mechanisms that employers should take seriously.

Potential consequences for non-compliance may include:

• Civil penalties of up to $1,000 for the first violation and up to $5,000 for subsequent violations
• Enforcement actions by the Virginia Attorney General
• Employee or applicant complaints
• Private lawsuits
• Reputational damage

The law also allows individuals to pursue legal action in certain circumstances, creating additional litigation exposure for employers that fail to comply.

Beyond financial penalties, employers should also consider the employee relations impact of non-compliance. Pay transparency issues can quickly affect workplace morale, recruiting efforts, and employer brand reputation.

There also is an “Opportunity to Cure” clause for some posting violations, where employers will have 15 business days to correct a non-compliance job posting after receiving written notice, which can prevent a private lawsuit.

Best Practices for Pay Transparency and HR Teams

Now that you have a better understanding of what’s required, which employers are covered, and potential penalties for noncompliance, what steps can you take to prepare to implement these requirements.

1. Review and Standardize Compensation Structures

One of the most important steps you and your HR team can take now is reviewing compensation frameworks across the organization.

Questions you should consider include:

• Are salary ranges clearly defined?
• Are compensation decisions documented consistently?
• Are pay practices aligned across departments and locations?
• Are managers using consistent criteria when determining offers?

Employers without structured pay bands may face significant challenges when public disclosure requirements begin.

2. Update Job Posting Processes

Your recruiting teams should prepare to revise both internal and external job posting templates. Having a standard template will help ensure consistency and help with this process.

This may involve:

• Adding salary ranges
• Including benefits information
• Creating standardized approval workflows
• Coordinating compensation reviews before posting jobs

Because job advertisements are often created quickly, automation and standardized processes can help reduce compliance risks.

3. Train Recruiters and Hiring Managers

As noted earlier, hiring managers are often the first line of compliance risk during recruiting conversations.

Training for recruiters, hiring managers, and other key players should address:

• Salary history restrictions
• Appropriate compensation discussions
• Retaliation protections
• Job posting requirements
• Documentation expectations

Companies should also make sure third-party recruiters understand and follow Virginia’s requirements when hiring on the company’s behalf.

4. Monitor Job Postings for Accuracy

Even if your applicant tracking system includes the correct salary information, errors can still occur when jobs are pushed to external job boards or third-party platforms.

Conducting regular audits or spot checks of active postings can help identify issues early and reduce compliance risks before they become larger problems or lead to fines and penalties.

5. Consider Multi-State Compliance Strategies

Virginia is far from the only state adopting pay transparency laws. Rather than maintaining different practices for each state, many employers are implementing nationwide transparency policies to simplify compliance, improve consistency, and ensure all state requirements are met.

HR teams can stay informed by reviewing updates from sources such as:

• VA Dept. of Labor and Industry
• VA legislative resources

Companies looking for a broader overview of nationwide requirements can also review OutSolve’s Ultimate Guide to Pay Transparency Laws by State.

Working with experienced HR compliance as a service (HR CaaS) partners, such as OutSolve, can help employers identify gaps, reduce legal risks, and prepare for new and changing pay transparency requirements across multiple jurisdictions.

What This Means for Your Organization

The new Virginia Pay Transparency law represents a significant shift for employers and reflects the growing national focus on compensation transparency and pay equity.

As outlined in this post, employers will need to rethink how they approach job postings, salary discussions, hiring practices, and compensation documentation, in preparation for the July 1, 2026 effective date. Companies that prepare early will be in a much stronger position to manage compliance effectively while also building trust with employees and candidates.

For you and your HR team, this is an opportunity to create more consistent, transparent, and equitable compensation practices that support both compliance and long-term workforce goals.

If you need support with Virginia’s new requirements or broader pay transparency obligations nationwide, OutSolve can help you assess current practices and build a compliance strategy tailored to your workforce. Contact us today to get started.