Virginia Employment Laws: What Governor Youngkin Just Vetoed and Why It Matters

As the Virginia General Assembly reconvenes next week, employers and employees alike should take note of the recent employment-related legislation that was vetoed, substituted, or approved by Governor Glenn Youngkin. While a few key measures remain under consideration, a number of worker-friendly bills have been outright rejected—including several that were reintroduced by the Democrat-controlled General Assembly for the second time. In his veto explanations, the governor cited concerns about the impact on business growth and job creation, as well as his desire to refrain from imposing more regulations and bureaucracy on employers, especially small businesses and nonprofits.

What Passed?: The Continued Erosion of Noncompetes

Among the many employment-related bills that passed this year, only one that we tracked survived without a veto or substitute:

• SB1218 - Noncompete Agreements: The existing ban on noncompete clauses, previously limited to "low-wage" workers (those earning less than $1,463.10 per week, according to the Virginia Department of Labor and Industry), has now been extended to all employees eligible for overtime pay. This means that starting on July 1, 2025, restrictive covenants cannot be offered to hourly workers (even if they make more than $76,081.20 per year) or salaried workers who do not meet the white collar exemption of the Fair Labor Standards Act.
• Employer Takeaway: This represents an expansion of worker rights in Virginia and will impact employers who rely on noncompetes to retain talent and protect proprietary information. Virginia courts have already demonstrated increasing skepticism toward restrictive covenants, often refusing to enforce the as restraints on trade. To prepare for this new law, Virginia employers should review existing contracts to avoid penalties with a focus on strong confidentiality, nondisclosure, and nonsolicitation clauses. They should adjust their retention strategies for sought-after talent to remain competitive without restricting the post-employment opportunities of their workforce.

Pending Amendments: Key Bills Awaiting Review

Governor Youngkin proposed substitutes for the following bills, which the General Assembly will consider next week:

• HB1649 - Unconscious Bias Training for Doctors: HB1649 would have required all Board-certified physicians to complete unconscious bias and cultural competency training to maintain their licenses. Governor Youngkin’s substitute removes the requirement for unconscious bias training and instead focuses on "learning activities" related to pregnancy healthcare and the postpartum period for women and infants, especially in populations with higher maternal and infant mortality, and postpartum complications. The substitute also limits this education requirement to those “who work with maternal populations,” chiefly those working in fertility, prenatal, birth, and postpartum care. This is the second time the Democrats have proposed this bill, which they explained was introduced to overcome the effects of unconscious racial bias in medicine, especially during pregnancy and postpartum care. Last year, the Governor proposed a similar substitute, which the General Assembly outright rejected.
• Employer Takeaway: If the Democrats concede and accept the Governor’s substitute, healthcare employers should ensure their training programs emphasize pregnancy and postpartum care while allocating sufficient budgets to meet this new requirement. Notably, doctors seeking to fulfill this mandate do not appear restricted from doing so through training on unconscious racial bias, as originally intended. It remains to be seen what training options the Board of Medicine, in collaboration with the Virginia Neonatal Perinatal Collaborative, will make readily available.

• HB1730 - Employer Liability for Personal Injury: HB1730 went through significant amendments through the legislative season. It was first introduced to establish employer liability in civil lawsuits for personal injuries resulting from criminal sexual assaults by employees, which understandably struck a chord with the business community. After working through both houses, the bill ultimately passed but it expanded focus to all personal injury and wrongful death claims, while narrowing to protect “vulnerable victims,” narrowly defined to include medical patients, assisted living residents, bus passengers, massage and esthetic spa-goers, infants, convicted felons, and other incapacitated persons. The Governor's substitute refines the law further, with focus on personal injuries (but not wrongful death) as a result of criminal sexual assault, child abuse or neglect, or malicious wounding of a minor, and expanding the list of protected individuals to protect vulnerable adults, but excluding passengers traveling on common carriers, like buses.
• Employer Takeaway: Should this bill pass in some form, employers should anticipate a rise in personal injury claims that may name them as defendants. Now is the time to consult insurance brokers about increasing liability coverage while also reinforcing workplace protections. This includes ensuring strong, well-trained managers, implementing robust safety policies, and fostering a culture of accountability to prevent harm—particularly to individuals who may be more vulnerable in the workplace.
• HB2401 - Trusts for Child Content Creators: Instead of mandating the placement of earnings for child content creators into trust accounts, the Governor proposes convening a work group to study the issue, with findings due by November 1, 2025.

The Vetoed Bills: Rejection of Efforts to Expand Employee Civil Rights, Leave, and Pay Laws. 

Perhaps the most significant aspect of this legislative session is the sheer number of employment-related bills that were vetoed. Here is a quick overview of the key employment-related bills that didn’t survive the Governor’s cut:

• SB917 – Mandate of collective bargaining for state and local government employees
• SB1052 - Elimination of the “Small Business Exception” under the Virginia Human Rights Act
• SB1132 – Prohibition of employer reliance on wage and salary history, and the requirement for employers to make pay ranges more transparent
• SB2098 - Expansion of numerous employment protections (including the ability to sue for retaliation) to state and local government employees
• HB1921 - Paid sick leave
• HB1625 – Minimum wage for farm laborers
• HB1830 - Educational leave for employee association officers
• HB1919 – Requirement for employers to adopt workplace violence policies
• HB1928 – Increase to minimum wage (gradually to $15 by January 1, 2027)
• HB2094 - Regulation of high-risk artificial intelligence in employment
• HB2469 - Overtime protections for domestic workers
• HB2561 - Expansion of minimum wage and overtime rights and remedies
• HB2531 - Paid family and medical leave
• HB2356 – Expansion of the prevailing wage rate

Why This Matters for Employers and Employees

Employers should pay close attention to the substitutes under review next week, as well as any potential legislative efforts to override the Governor’s vetoes. Given the rise in union sentiment and employee activism in today’s culture, the push for stronger worker protections is unlikely to fade—especially if Democrats maintain control of the General Assembly after this fall’s election. Many of the vetoed bills, including proposals for a higher minimum wage, paid sick leave, paid family and medical leave, mandated collective bargaining, and workplace violence policies, have been introduced before and will likely resurface. As labor and employment laws in Virginia grow increasingly complex, employers should proactively audit their handbooks, payroll practices, and insurance coverage. Additionally, investing in HR best practices—such as competitive recruitment and retention strategies and training effective, principled supervisors—will be key to maintaining a fair workplace and productive workforce.

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Please feel free to contact the Labor & Employment Team with any questions as they monitor the fate of this legislation and help employers stay in legal compliance as the legal landscape continues to evolve.