5/21/26

By: Kendal Ashman and Joshua Ferguson
Virginia has enacted a pay transparency law that prohibits employers from requesting or relying on a job applicant’s wage or salary history during hiring or compensation decisions.
The bill, which was signed by the Governor on April 22 and is scheduled to take effect in July 2026, applies to all employers regardless of size. It prohibits employers from retaliating against applicants or employees who decline to disclose prior compensation or who request information about wage ranges. The bill defines “wage or salary history” as any compensation paid to a prospective employee by a current or former employer. Prohibited retaliation includes refusing to interview, hire, employ, or promote an applicant or current employee. In addition, the law requires employers to include a good‑faith wage or salary range in all internal and external job postings.
The bill provides an exception if an applicant voluntarily discloses their salary history—employers may then verify and use that information only to offer higher compensation, not lower it, and only if doing so does not violate state or federal equal pay laws. Enforcement includes a private right of action, civil penalties enforced by the Virginia Attorney General (up to $5,000 for repeat violations), and a 15‑day safe‑harbor period to correct noncompliant job postings.
This follows the trend of other States and Cities implementing similar laws, including but not limited to California, Colorado, Massachusetts, New Jersey, Illinois, along with New York City, Philadelphia, San Francisco and Pittsburgh to name a few.
This is another reminder that employers should ensure hiring practices, applications, and job postings comply with the applicable jurisdictional requirements. Employers should also review and update compensation policies, train hiring personnel, and conduct audits of job postings and interview practices ahead of the law’s effective date to mitigate compliance risk.
For more information, please contact Kendal Ashman at kendal.ashman@fmglaw.com, Joshua Ferguson at joshua.ferguson@fmglaw.com or your local FMG attorney.
Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.
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