The state of Virginia passed several new employment laws in 2023. The 2023 legislative session closed in March with little accomplished compared to past years, partly because of a heavily divided state government. That said, state lawmakers were able to pass a few key laws, particularly in areas of employment law.
Senate Bill 1040, for example, was signed into law by Governor Glenn Youngkin on March 21. Under the new law, employers are strictly prohibited from using an employee’s Social Security number (SSN) or any segment of the employee’s SSN as part of the employee’s workplace identification, such as an employee badge number. The law calls out SSNs and “any number derivative thereof” but does not define what constitutes a derivative. Employers who fail to follow Senate Bill 1040, which went into effect on July 1, will be charged a civil penalty of $100 per infraction.
The governor also approved House Bill 1895, which comprises legislation regarding agreements between employers and employees, namely nondisclosure, confidentiality, and non-disparagement agreements. The bill also provides coverage to potential employees. Under the new law, employees and job candidates cannot be compelled to sign off on or renew any such agreement to conceal details about a sexual harassment claim.
An individual who refuses to execute such an agreement, which is now considered void and unenforceable in the eyes of the law, cannot be fired or barred from employment. House Bill 1895 is comparable to President Biden’s Speak Out Act but does not extend to severance agreements or similar post-termination pacts.
The state passed legislation about the state’s sub-minimum wage workers. Governor Youngkin advised the Virginia House of Delegates to enact House Bill 1924, passed on April 12. Before the act, Virginia Code § 40.1-28.9 permitted select employers to hire individuals living with disabilities at a rate less than minimum wage.
House Bill 1924 removed this exception, referring employers with proper 29 U.S.C. § 214(c) of the Fair Labor Standards Act of 1938 to the Virginia Minimum Wage Act. The law went into effect on July 1, but employers with a 14(c) exemption before that date have until July 1, 2030, to increase pay rates. Minimum wage was $12 per hour in 2023, almost double the national rate of $7.25
Other laws addressed particular employee scenarios, such as organ donation leave. Under the direction of Governor Youngkin, the Virginia House of Delegates passed Senate Bill 1086. Under the bill, any employer with 50 or more employees must provide between 30 and 60 days of leave for employees following an organ or bone marrow donation. The leave is unpaid, but employees cannot be fired during this period and must have the opportunity to return to the position they held before the time off. Furthermore, an employer can not use the time off to disrupt continuous service metrics, which influence an employee’s salary, sick leave, and other important employment information.
Finally, the governor’s signature on House Bill 2010 allows attorneys with the Virginia Employment Commission (VEC) to serve subpoenas. VEC attorneys will use this new resource to support Virginia Unemployment Compensation Act investigations.
