As the 2026 legislative session continues to reshape the Virginia’s employment landscape, Senate Bill 637 (SB 637) represents a meaningful expansion of the Virginia Human Rights Act (VHRA). The bill has passed both chambers and was sent to the Governor on March 31, 2026, for final consideration. If signed, it is expected to take effect on July 1, 2026.
SB 637 would broaden the definition of who qualifies as an “employer” under the Act and extend the timeframe for employees to pursue discrimination claims, signaling increased exposure and compliance considerations for Virginia employers.
Key Changes Proposed by SB 637
This legislation introduces three pivotal modifications to current non-discrimination procedures and definitions:
- Lowered Employer Threshold. The bill reduces the number of employees required to meet the definition of an “employer” from 15 down to five for each working day. This change significantly expands the VHRA’s reach to include thousands of small businesses previously exempt from certain provisions.
- Extended Statute of Limitations: SB 637 dramatically extends the timeframe for filing a complaint of unlawful discrimination with the Office of the Attorney General. The current 300-day window would be increased to two years.
- Expanded Scope for Public Accommodations. For the purposes of non-discrimination in public accommodations, the definition of a “place of public accommodation” is expanded to explicitly include educational institutions.
- Age Discrimination Parity. The bill repeals current limits on age-related claims, which previously applied only to employers with between 5 and 20 employees, now covering any employer with at least five employees.
Understanding the Impacts
The primary goal of SB 637 is to harmonize Virginia’s protections with broader employee-rights initiatives seen across the 2026 session. By lowering the employee threshold and doubling the time allowed to file claims, the state is making it easier for workers in smaller settings to seek legal recourse for discrimination based on race, color, religion, sex, sexual orientation, gender identity, and other protected characteristics.
Next Steps for Employers
With the Governor’s decision looming, employers, especially those with fewer than 15 employees should begin proactive compliance efforts:
- Assess Your Employee Count: Determine if your organization now falls under the “employer” definition by having five or more employees for 20 or more calendar weeks.
- Update Anti-Discrimination Policies: Ensure your employee handbook clearly prohibits discrimination based on all protected classes under the VHRA, including pregnancy, childbirth, and military status.
- Train Small Business Managers: If you were previously under the 15-employee threshold, your management team may need training on the formal complaint and investigation processes handled by the Office of Civil Rights.
- Audit Record Retention: Given the proposed two-year filing window, ensure that personnel files, performance reviews, and hiring records are maintained securely for at least three to five years to defend against potential late filing claims.
- Monitor Effective Dates: While the Governor has until mid-April to act, most bills signed during this session traditionally carry an effective date of July 1, 2026, unless otherwise specified.
