Pay transparency regulations are redefining hiring, and employers in Virginia now need to gear up to comply with the state’s latest laws. Many states already have clearly defined pay transparency laws in place to ensure that employees are on the receiving end of fair and clearly communicated wages, and these rules help employers standardize payment decisions with better clarity on each role. Virginia and Maine’s laws are set to go into effect on July 1, 2026, which leaves employees with just a few more days to review their practices and ensure there is no cause for complaint.
Virginia’s pay transparency policy and ban on salary history enquiries now ensure that wages and salaries are better standardized. (Image: Pexels)
What Employers Need to Know About the Pay Transparency Law in Virginia
As per the wage transparency policy in Virginia, employers are required to disclose the specific wage, salary, or the range of pay available for any job post, promotion, transfer, or other similar opportunities at the organization to ensure that job seekers and employees are aware of the set compensation for the role. The wage or salary range must be set in good faith, based on pre-existing pay scales, other similar positions at the organization, or on the discussed budget for the role.
Unlike some other pay transparency laws, Virginia employers are not required to disclose other aspects, like the range of benefits that will be offered for the role. The focus remains on the pay, and in a comprehensive way.
Virginia’s Pay Transparency Requirements Also Ban Employers from Asking About Employee Salary History
The hiring laws set to take effect in Virginia also ban employers from asking workers about their salary history. Employers are not permitted to obtain salary history data or use it to determine the wages to be offered to the employee, as the pay must be determined based on the employer’s own salary range. The only exception to this regulation is if the employee provides the information willingly, and their previous pay is used as the metric to offer the employee a higher salary than the initial offer made to them.
Employers also need to note that they cannot retaliate against the job seeker or employee for choosing not to provide their wage history. A refusal to interview, hire, employ, or promote an employee due to their reluctance to share such facts can lead to repercussions for the organization.
When Do the Wage Transparency Regulations Go Into Effect?
After two previous attempts at enforcing similar regulations, Virginia’s pay transparency law, HB 636 or SB 215, was officially approved on April 22, 2026. It goes into effect on July 1, 2026. Unlike some regulations that apply only to some sections of employers, this employment law applies to all employers in the state, which means compliance is non-negotiable.
What Are the Consequences of Failing to Meet the Requirements of This Transparency Law?
Employers who fail to comply with these new employment regulations could face some expensive consequences. For one, the Attorney General could introduce a civil action case against the employer. The first violation will involve a penalty of up to $1,000, but subsequent violations may come with penalties of up to $5,000, along with the provision of other relief and civil penalties. Employees and job seekers are also free to introduce their own lawsuits against employers if they have been wronged and found an employer in violation of this policy.
However, before job seekers and employees can take action, they must provide written notice to the employer to alert them that their job posting is not in accordance with the transparency law, whether due to a lack of pay disclosure or due to a salary range that has not been set in good faith. Employers then have fifteen business days to resolve the issue. Failure to do so can open them up to legal repercussions.
It’s Time to Get Serious About Pay Transparency
With Virginia ramping up its pay transparency regulations and other states similarly making changes to policy, employers need to work with their HR teams to ensure compliance. Job postings need to be framed carefully, with planning on how the wages and salaries for a role will be determined and displayed. Hiring teams and those communicating with candidates should also receive training on how to approach candidates, as it is no longer permissible to ask about salary history or negotiate a candidate’s wages based on their previous earnings.
Compliance ensures operations without complication and also establishes a workplace relationship based on trust, honesty, and mutual interest. As regulations surrounding AI, ghost job postings, and other hiring laws also make their way to different states, keeping track of upcoming regulations is critical to ensure that no adjustments are omitted when planning employment operations.
Subscribe to The HR Digest for more insights on changes to HR and hiring regulations so you can stay up to date with the latest developments in the realm of employment.
