Virginia’s New Pay Transparency Law Takes Effect July 1, 2026
Virginia employers need to know about a significant change in hiring and recruiting practices as the Commonwealth’s new Pay Transparency Law (SB 215) takes effect on July 1, 2026. The law, codified as Virginia Code § 40.1-28.7:12, creates new requirements related to applicant pay history and compensation disclosures. Below is a link to the new law.
Key Requirements for Virginia Employers
Pay History Inquiries Are Prohibited
Employers shall not seek the wage or salary history of a prospective employee or applicant.
- If you have language on your application seeking an applicant’s prior pay history, it must be removed.
- During the interview process, you cannot ask candidates to disclose their current or prior wage or salary.
- Employers shall not refuse to interview, refuse to hire, or retaliate against a candidate because he or she did not provide pay history or requested a pay range.
Pay or Pay Ranges Must Be Included in Job Postings
Beginning July 1, employers must include the wage, salary, or wage and salary range in every public and internal posting for a job, promotion, or other employment opportunity.
Under the law, a pay range must be established in good faith and may be based on factors such as:
- An existing pay scale
- A previously determined pay range for the position
- Compensation ranges for employees in comparable roles
- Budgeted amounts available for the position
Voluntary Disclosure Remains Permitted
If an applicant voluntarily provides his pay history to any employer, the employer may rely upon the disclosure to support a pay that is higher than the employer’s initial offer.
Preparing for Compliance
Above is a summary of several of the key terms in the new law. Employers with questions about the new pay transparency requirements or other workplace compliance issues should consult experienced employment counsel. For assistance, contact Gentry Locke’s Employment & Labor team.
