Virginia Employee Handbook Requirements (2026)

Virginia has state-specific policies your employee handbook needs to address. That puts it in the lighter half of US states, but Virginia's 2020 Values Act rewrote the compliance playbook, and the details on pay frequency, organ donation leave, and separation pay still trip up employers who assume "fewer policies" means "less risk." Please keep in mind requirements may vary based on company size, industry, location, and workforce composition.

Updated March 2026

Policy Breakdown by Category

Virginia requires 9 state-specific handbook policies. Here's what each one covers, without the legalese.

Leave

4 policies

Military Service Leave

Virginia Code Section 44-93.2 through 44-93.4 provides state-level military leave protections beyond federal USERRA, including reemployment rights, anti-retaliation provisions, and continuation of benefits during active duty for state residents.

Jury and Witness Duty

Virginia Code Section 18.2-465.1 prohibits employers from discharging, penalizing, or threatening employees who respond to a jury summons or subpoena to testify as a witness. Employers must allow employees time off without reprisal.

Bone Marrow and Organ Donation Leave

Virginia Code Section 40.1-28.7:5 requires employers with 50 or more total employees to provide up to 30 business days of leave in a 12-month period for organ donation and up to 5 business days for bone marrow donation. Leave may be paid or unpaid.

Depends on employee count

Crime Victim Leave

Virginia Code Section 40.1-28.7:2 requires employers to allow employees who are crime victims to take leave to attend criminal proceedings. Employers may not discharge or discipline employees for exercising this right.

Wage & Hour

3 policies

Overtime

Virginia follows the federal FLSA framework for overtime, but the Virginia Overtime Wage Act (Section 40.1-29.2) creates a private right of action for unpaid overtime with liquidated damages and attorney's fees, adding state-level enforcement beyond the federal baseline.

Wage Deductions

Virginia Code Section 40.1-29(C) restricts payroll deductions to those authorized by law or expressly authorized in writing by the employee. Unauthorized deductions can trigger penalties including civil fines and, for willful violations, criminal misdemeanor charges.

Pay Frequency

Under Virginia Code Section 40.1-29(A), hourly employees must be paid at least semi-monthly (twice per month). Salaried employees may be paid monthly. Employers must also provide written earnings statements each pay period.

Compliance

1 policy

Equal Employment & Anti-Discrimination (Virginia Human Rights Act)

The Virginia Human Rights Act (Section 2.2-3900 et seq.), as expanded by the 2020 Virginia Values Act, prohibits employment discrimination based on race, color, religion, national origin, sex, pregnancy, childbirth, sexual orientation, gender identity, age, marital status, disability, and veteran status. Applies to employers with 5 or more total employees.

Depends on employee count

Termination Pay

1 policy

Payment of Wages upon Separation

Under Virginia Code Section 40.1-29(A.1), all wages due to a terminated or separated employee must be paid by the next regular payday or within the time frames specified by law. Failure to pay can result in civil penalties and a private right of action with liquidated damages.

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Common Compliance Pitfalls in Virginia

The mistakes we see most often, and how to avoid them.

Before 2020, Virginia's anti-discrimination law tracked federal Title VII and only applied to employers with 15 or more employees. The Virginia Values Act, signed in April 2020, rewrote that equation. It lowered the employer threshold to 5 employees, added sexual orientation, gender identity, and veteran status as protected categories, and created a private right of action allowing employees to sue directly in state court.

That last part is the game-changer. Before 2020, Virginia employees had to go through the federal EEOC or rely on limited state remedies. Now they can file suit in Virginia circuit court and recover compensatory damages, punitive damages, and attorney's fees, all under Virginia Code Section 2.2-3900 et seq.

What employers commonly get wrong:

Still using the old 15-employee threshold. If you have 5 full-time employees, you're covered. The counting includes part-time workers in some circumstances, so even very small businesses should assume they're subject to the Act.
Missing the new protected categories. Sexual orientation, gender identity, and veteran status were not protected under Virginia law before 2020. Handbooks that haven't been updated since then are missing required language.
Not training managers. A private right of action means employees can bypass administrative processes and go straight to court. Manager awareness is your first line of defense, because a single poorly handled situation can become a lawsuit without any agency investigation first.

The fix: Update your EEO policy to include all protected categories under the Values Act. Revise your threshold assumptions. Train managers on the expanded protections and the fact that employees now have a direct path to court. If your handbook was last revised before April 2020, it needs a full anti-discrimination policy rewrite.

Sources: Va. Code Sec. 2.2-3900 et seq. (Virginia Human Rights Act); Virginia Values Act (SB 868/HB 1049, effective July 1, 2020); Va. Code Sec. 2.2-3903 (unlawful employment practices)

Virginia's pay frequency requirements under Virginia Code Section 40.1-29 are straightforward but surprisingly strict. Hourly employees must be paid at least semi-monthly (twice per month). Salaried employees whose annual earnings are reasonably predictable can be paid monthly, but only if the employer has established a regular payday.

Every pay period, employees must receive a written earnings statement showing gross wages, deductions, and net pay. This isn't optional, and there's no exception for small employers.

Here's where it gets serious: a violation of Section 40.1-29 isn't just a civil matter. An employer who willfully fails to pay wages on time commits a Class 1 misdemeanor, which carries up to 12 months in jail and a fine of up to $2,500. Repeat violations within the same 10-year period escalate to a Class 6 felony.

What trips employers up:

Switching payroll schedules without notice. Employers who move from bi-weekly to semi-monthly (or vice versa) sometimes create gaps where employees go longer than the legal maximum between paychecks.
Classifying hourly employees as salaried to pay monthly. If the employee is truly hourly (non-exempt), they must be paid at least twice per month, regardless of how payroll is labeled internally.
Forgetting the earnings statement. Even if wages are paid on time, the absence of a written statement is itself a violation.

The fix: Audit your payroll schedule against employee classifications. Make sure every hourly worker is paid at least semi-monthly. Issue written earnings statements every pay period. If you're switching payroll frequencies, ensure the transition doesn't create a gap that exceeds the legal maximum.

Sources: Va. Code Sec. 40.1-29 (payment of wages); Va. Code Sec. 40.1-29(D) (criminal penalties); Virginia Department of Labor and Industry enforcement guidance

Virginia is one of a handful of states that specifically requires employers to provide leave for organ and bone marrow donation. Under Virginia Code Section 40.1-28.7:5, employers with 50 or more total employees must provide:

Up to 30 business days of leave in any 12-month period for organ donation
Up to 5 business days of leave in any 12-month period for bone marrow donation

The leave may be paid or unpaid at the employer's discretion, but the employee's job must be protected during the absence. The employer may require medical certification verifying the donation and a reasonable recovery period.

This policy catches employers off guard for a few reasons:

It's rarely requested. Organ donations are uncommon enough that many HR teams have never processed one, which means the policy doesn't exist in the handbook until it's suddenly needed.
The 50-employee threshold creates a blind spot. Companies that recently crossed the 50-employee mark may not realize they've picked up this obligation. It's not on most "new requirement" checklists the way FMLA is.
Coordination with FMLA is unclear. If the employee also qualifies for FMLA leave, determining whether organ donation leave runs concurrently requires careful analysis. Getting this wrong could mean either shorting the employee on protected leave or providing more leave than required.

The fix: If you have 50 or more employees, add an organ and bone marrow donation leave policy to your handbook now, before anyone requests it. Define whether the leave is paid or unpaid. Establish what medical documentation you'll require. And clarify how it interacts with FMLA and any company PTO policy.

Sources: Va. Code Sec. 40.1-28.7:5 (organ and bone marrow donation leave); 29 U.S.C. Sec. 2601 et seq. (FMLA)

Virginia's wage payment law got significant teeth in recent years. Under Virginia Code Section 40.1-29, when an employee separates (whether terminated or resigns), all wages due must be paid by the next regular payday or in accordance with the employer's established pay schedule.

What changed in 2020 and 2021 was the enforcement mechanism. Virginia added a private right of action for unpaid wages, meaning employees no longer have to rely solely on the Virginia Department of Labor and Industry to pursue claims. They can hire a lawyer and sue directly in court.

The damages are meaningful:

Liquidated damages equal to the unpaid wages (effectively doubling the amount owed)
Pre-judgment interest at 8% annually
Reasonable attorney's fees and costs

For willful violations, the criminal penalties under Section 40.1-29(D) also apply: Class 1 misdemeanor for a first offense, Class 6 felony for repeat offenses within 10 years.

The common mistakes employers make:

"We'll include it in the next payroll run." This is only acceptable if the next payroll run falls on or before the next regular payday. Waiting until a more convenient time creates exposure.
Forgetting accrued benefits. If your written policy promises payout of accrued vacation or PTO upon separation, those amounts are considered "wages" under Virginia law and must be included in the final payment.
Disputes over commissions. Earned commissions that are calculable at the time of separation must be included. Holding commissions pending "final reconciliation" is risky if the amounts are reasonably determinable.

The fix: Build a separation checklist that calculates all wages, accrued PTO, and earned commissions before the employee's last day. Process the final payment to hit the next regular payday. Document everything. If there's a genuine dispute over an amount, pay the undisputed portion on time and resolve the remainder promptly.

Sources: Va. Code Sec. 40.1-29 (payment of wages and final pay); Va. Code Sec. 40.1-29.2 (Virginia Overtime Wage Act, private right of action); SB 838 (2020, private right of action for wage claims)

Understanding Virginia Employee Handbook Requirements

Virginia sits in an interesting middle ground among US states. With just 9 state-specific handbook policies, it's far from the regulatory complexity of California (41 policies) or Illinois (28), but it's also not the hands-off environment that employers sometimes assume when they hear "business-friendly Southern state."

The 2020 Virginia Values Act was the inflection point. In a single legislative session, Virginia went from having one of the weaker state anti-discrimination frameworks to one that rivals many blue-state protections. The employer threshold dropped to 5 employees, new protected categories were added, and a private right of action gave employees direct access to the courts. If your understanding of Virginia employment law is based on anything before July 2020, it's outdated.

Virginia's 9 policies break down into four categories: Leave (4 policies covering military service, jury and witness duty, organ and bone marrow donation, and crime victim leave), Wage & Hour (3 policies covering overtime, wage deductions, and pay frequency), Compliance (1 policy on equal employment and anti-discrimination under the Virginia Human Rights Act), and Termination Pay (1 policy on payment of wages upon separation). All 9 are classified as high-risk, meaning noncompliance creates direct legal exposure.

The low count can lull employers into a false sense of security. Every one of these 9 policies has enforcement teeth, whether through criminal penalties for wage violations, private rights of action for discrimination claims, or job protection requirements for leave. Fewer policies does not mean lower stakes.

What the 2020 Virginia Values Act Changed (And Why Pre-2020 Handbooks Are a Liability)

Before 2020, Virginia's employment law landscape was relatively light. The state largely deferred to federal frameworks for anti-discrimination protections, had no private right of action for most employment claims, and applied the standard 15-employee threshold borrowed from Title VII.

The Virginia Values Act (SB 868/HB 1049), effective July 1, 2020, changed all of that in several critical ways:

The employer threshold dropped to 5 employees. This is one of the lowest in the country. A dental office with a receptionist, two hygienists, an office manager, and a dentist is now subject to the full anti-discrimination framework. Many small employers in Virginia have no idea this applies to them.

New protected categories were added. Sexual orientation, gender identity, and veteran status are now explicitly protected. Virginia went from having no state-level LGBTQ+ employment protections to having some of the broadest in the Southeast.

A private right of action was created. Employees can now sue employers directly in Virginia circuit court for discrimination, without first going through the EEOC or the Virginia Division of Human Rights. Remedies include compensatory damages, punitive damages (capped at varying levels based on employer size), back pay, and attorney's fees.

The practical impact for handbooks is significant. Any Virginia handbook drafted or last updated before July 2020 is almost certainly missing required language. The EEO policy needs to list every protected category under the Values Act, complaint procedures need to reference state-level options, and managers need to understand that "Virginia is business-friendly" no longer means what it used to when it comes to discrimination claims.

If your handbook predates the Values Act, a free compliance audit will flag exactly what needs updating.

Virginia Wage Laws: More Enforcement Power Than You Expect

Virginia's wage and hour requirements might seem straightforward, but recent legislative changes have given them real enforcement muscle. Between 2019 and 2021, the General Assembly passed a series of bills that fundamentally upgraded the state's wage enforcement framework.

Here's what matters for your handbook:

Pay frequency is not flexible. Under Virginia Code Section 40.1-29, hourly employees must be paid at least semi-monthly. Salaried employees with predictable earnings may be paid monthly. Every pay period, a written earnings statement is required showing gross pay, deductions, and net pay. There's no small-employer exemption.

Wage deductions require written authorization. Employers can only deduct from wages when required by law (taxes, garnishments) or when the employee provides express written consent. Deductions for cash shortages, damaged equipment, or uniform costs without prior written authorization are violations.

The Virginia Overtime Wage Act created state-level overtime enforcement. While Virginia follows the federal FLSA framework for overtime calculation, Section 40.1-29.2 provides a separate state cause of action. An employee denied overtime can sue under both federal and Virginia law, and the Virginia statute includes liquidated damages and attorney's fees.

Criminal penalties apply to willful violations. An employer who willfully fails to pay wages commits a Class 1 misdemeanor (up to 12 months in jail, $2,500 fine). A second willful violation within 10 years is a Class 6 felony. This is unusually aggressive for wage enforcement and applies to late final pay, missed payroll deadlines, and unauthorized deductions alike.

The combination of criminal penalties and private rights of action means Virginia wage claims are no longer limited to administrative complaints. Employees and their attorneys have multiple avenues to pursue claims, and the potential damages make even small-dollar violations worth litigating.

Keeping Your Virginia Handbook Current in 2026

Virginia's legislative activity has settled somewhat after the burst of 2019-2021 reforms, but several items still affect what belongs in your handbook for 2026:

Values Act enforcement continues to develop. As more cases work through Virginia courts under the private right of action, precedent is being established on damages, procedural requirements, and the scope of protected categories. Watch for circuit court decisions that clarify how Virginia's anti-discrimination law differs from federal Title VII in practice.
Overtime enforcement is expanding. The Virginia Overtime Wage Act, while it mirrors the FLSA in most respects, gives employees a separate state-level claim. This is particularly relevant after the federal overtime salary threshold rule was vacated by a Texas court in 2024. Virginia employers should not assume the federal outcome resolves their state-level obligations.
Federal requirements fill the gaps. Virginia doesn't have state-mandated paid sick leave, a state FMLA equivalent, or state-level meal and rest break requirements. That means federal requirements (FMLA at 50 employees, FLSA for overtime and minimum wage, ADA for accommodations) carry the full weight without any state-level supplement. Your handbook needs to cover these federal mandates explicitly.
Neighboring state trends matter. Maryland, DC, and North Carolina all have different (and in some cases stricter) employment frameworks. Virginia employers with remote workers or multi-state operations need to track where their employees actually work, not just where the company is headquartered.

AirMason's handbook builder generates Virginia-compliant handbooks that cover both the 9 state policies and all applicable federal requirements. Our compliance team tracks legislative and court developments weekly, so your policies stay current without requiring you to monitor every session of the General Assembly.

Not sure whether your current handbook covers 2026 requirements? Run a free compliance audit. It takes minutes, checks against 1,000+ rules, and tells you exactly where the gaps are.

Frequently Asked Questions

Virginia doesn't have a single law that mandates an employee handbook. But the Virginia Human Rights Act requires anti-discrimination policies for employers with 5 or more employees, wage payment laws require written earnings statements, and the practical reality is that documenting leave policies, deduction authorizations, and separation procedures in writing is the only reasonable way to prove compliance. Think of it less as "is a handbook required" and more as "do I need written policies on 9 specific topics." The answer to that is yes.

Three big things. First, the employer threshold for anti-discrimination coverage dropped from 15 employees to 5. Second, sexual orientation, gender identity, and veteran status were added as protected categories. Third, and most importantly, employees gained a private right of action, meaning they can sue employers directly in Virginia circuit court for discrimination without going through the EEOC first. If your handbook was last updated before July 2020, it needs a rewrite on the anti-discrimination sections at minimum.

At minimum, annually. Virginia's General Assembly meets every year (short session in even years, long session in odd years), and federal changes affect Virginia employers directly. The 2020-2021 reforms caught many employers off guard because they happened quickly. Beyond the annual review, update your handbook whenever you cross employee count thresholds (5, 50), when federal rules change, or when your company policies shift on topics like PTO payout or remote work.

Virginia wage penalties escalated significantly after the 2019-2021 reforms. For civil claims, employees can recover unpaid wages plus liquidated damages equal to the unpaid amount (effectively doubling the liability), plus pre-judgment interest at 8%, plus attorney's fees. For willful violations, criminal penalties apply: a first offense is a Class 1 misdemeanor (up to 12 months in jail, $2,500 fine), and a repeat willful violation within 10 years is a Class 6 felony. These apply to late pay, missed final paychecks, and unauthorized deductions alike.

Under Virginia Code Section 40.1-29, hourly employees must be paid at least semi-monthly (twice per month). Salaried employees whose annual earnings are reasonably predictable may be paid monthly. In all cases, employers must issue a written earnings statement each pay period showing gross wages, itemized deductions, and net pay. There is no small-employer exemption for these requirements.

Yes, but only for larger employers. Virginia Code Section 40.1-28.7:5 requires employers with 50 or more total employees to provide up to 30 business days of leave for organ donation and up to 5 business days for bone marrow donation in any 12-month period. The leave may be paid or unpaid at the employer's discretion. The employer can require medical certification. Employees who qualify for FMLA may have overlapping protections, so coordinate the two carefully.

All wages due to a separated employee (whether terminated or resigned) must be paid by the next regular payday. This includes base wages, any accrued benefits your written policy promises to pay out, and earned commissions that are reasonably calculable. Since 2020, employees have a private right of action for unpaid final wages, meaning they can sue directly and recover liquidated damages (double the unpaid amount), pre-judgment interest, and attorney's fees.

Yes. AirMason's free handbook audit checks your handbook against 1,000+ compliance rules, including all 9 Virginia state policies and applicable federal requirements. Our handbook builder generates Virginia-compliant handbooks that cover the Values Act's expanded protections, wage payment requirements, and leave policies. And our compliance team tracks legislative changes weekly so your handbook stays current automatically.