Virginia Mandates Pay Transparency and Bans Pay History Inquiries Starting July 1

Summary – Virginia has adopted a new wage transparency law, signed by Governor Abigail Spanberger on April 22, 2026. Effective on July 1, 2026, the new law has two primary purposes: (1) to require employers to disclose wage or salary ranges in job postings, and (2) to prohibit employers from asking about or improperly relying upon the wage and salary history of prospective employees. Further, employers may not retaliate against prospective or current employees for refusing to provide their pay history, or for requesting a wage or salary range. The law creates enforcement mechanisms through civil actions brought by the Attorney General, as well as a private right of action for employees or prospective employees.

Recently, state legislatures across the United States are favoring increased transparency regarding wages and salaries in job postings. Similarly, many states now restrict employers from inquiring about applicants’ pay histories. This year, Virginia joined the trend, enacting a new law requiring employers to disclose the relevant wage or salary range in each job posting. Virginia employers are also now prohibited from inquiring about applicants’ pay histories and/or from improperly relying on an applicant’s pay history to determine the pay to offer the applicant. 

Pay Transparency

The new law has two provisions regarding transparency. First, employers must disclose the wage, salary, or wage or salary range for each job, promotion, transfer, or other employment opportunity they advertise, whether the opportunity is posted internally or externally. This means that when employers advertise an open position, a promotion, a transfer, or any other employment opportunity, the employer must identify how much the position will pay. If pay will be determined based on the candidate’s experience or other qualifications, the employer must post the minimum and maximum amounts anticipated for the position.

Second, employers must set the advertised pay or pay range “in good faith,” indicating that the listed amount for each position must be reasonably accurate. It is not entirely clear what will constitute “good faith,” but the statute states that an evaluation of “good faith shall consider, among other things, the breadth of such wage or salary.” This likely means that the range cannot be unreasonably broad. Employers can select an appropriate pay amount or range by referencing applicable pay scales, previously determined wage or salary ranges for the position, the actual wage or salary of the person currently holding the position, or the budgeted amount available for the position.  

Pay History 

In addition to the transparency requirements, employers may not inquire about an employee’s pay history when considering an applicant for employment. In total, employers in the Commonwealth are now prohibited from: (1) inquiring into an applicant’s pay history, (2) relying on an applicant’s pay history when considering whether to hire them, (3) relying on an applicant’s prior pay to determine how much to pay them upon hire—unless such reliance supports a higher wage or salary—and (4) retaliating against a current or prospective employee for not providing their pay history or for requesting information about the pay for a position. 

Despite these prohibitions, prospective employees retain the right to voluntarily disclose their prior wage or salary history, perhaps as a negotiating tool. But if an applicant chooses not to disclose their pay history, the employer may not ask, and the employer must treat the applicant no differently. Similarly, employers may not use an applicant’s prior pay history to determine how much to pay them upon hire, unless such history supports higher pay for the employee. Even if an employee is promoted internally, the employer may not consider the employee’s prior pay history when setting his or her new pay. 

For example, pretend that an entity publicly advertises an open position with a starting salary of $100,000. Both external and internal candidates apply and are interviewed. After reviewing all candidates, the company decides to promote a current employee into the open role. The current employee made $60,000/year before the promotion. To save money, an executive suggests that the employee only be promoted to $80,000 since that would still be a significant pay increase for them. Under this law, that is impermissible; the entity cannot consider the newly promoted employee’s pay history and must pay the advertised $100,000 salary. 

Enforcement

The new law creates two enforcement mechanisms. First, the Attorney General may bring a civil action to enforce the law. This may result in civil penalties of up to $1,000 for the first violation and up to $5,000 for any subsequent violation, as well as any other relief that a court deems appropriate. 

Second, a prospective or current employee may personally file an action against a noncompliant employer within one year of violation of the law. Offending employers may be liable to the aggrieved party for actual damages, as well as other legal or equitable relief. However, if the violation stems from the employer’s failure to disclose, in good faith, the wage or salary range for a position, the prospective plaintiff must give the employer notice and a chance to remedy the violation before filing suit. If an employer receives written notice that a job posting is noncompliant, the employer has 15 business days to remedy the violation. If the violation is remedied in that time period, the employer may not be sued for a failing to properly disclose the pay for a position. 

Practical Next Steps

Virginia employers should prepare now to add pay amounts or ranges to all posted job opportunities by July 1, 2026. Further, employers should notify hiring managers, recruiters, interviewers, and any other relevant personnel about this law. Anyone who assists with selecting or evaluating prospective employees must be aware of the new prohibitions on inquiring about an applicant’s pay history so that they do not inadvertently create liability for the employer under this law.