Virginia is set to join the growing number of states implementing strict wage transparency and salary history laws. Senate Bill 215 (SB 215) introduces significant changes to the Virginia Wage Payment Act, fundamentally altering how employers interact with job applicants regarding compensation. If signed by the governor, the law would become effective on July 1, 2026.
By mandating the disclosure of salary ranges and prohibiting inquiries into an applicant’s past earnings, this legislation aims to foster pay equity across the Commonwealth.
Key Mandates of SB 215
The bill establishes several new requirements for employers operating within Virginia. Understanding these core provisions is essential for maintaining compliance and avoiding potential litigation.
- Wage Range Disclosure: Employers must provide a “good faith” wage or salary range for all public and internal job postings.
- Defining “Range”: The range must include the lowest and highest pay the employer in good faith believes it would pay for the specific role at the time of the posting.
- Prohibition on Salary History Inquiries: Employers are prohibited from seeking the wage or salary history of a prospective employee.
- Use of Voluntary Information: An employer may only rely on salary history if the applicant voluntarily discloses it, without prompting, and only to confirm the history or justify a higher wage than initially offered.
- Anti-Retaliation: It is unlawful to discharge or retaliate against an employee or applicant for inquiring about a wage range or exercising their rights under this Act.
Enforcement and Liability
SB 215 introduces a private right of action, allowing individuals to file suit for violations. Employers found in violation may be liable for:
- Statutory Damages: Between $1,000 and $10,000, or actual damages, whichever is greater.
- Legal Fees: Reasonable attorney fees and court costs.
- Right to Cure: For violations specifically related to job postings, an employer has 15 business days to “cure” the violation (correct the posting) after receiving notice from the applicant before a lawsuit can be initiated.
Next Steps for Employers
To prepare for these changes and ensure a smooth transition to the updated reporting and enforcement landscape, employers should consider the following proactive steps:
- Review Recruitment Procedures: Audit job applications and interview scripts to identify and remove any questions regarding previous compensation.
- Establish Standard Pay Scales: Develop clear, “good faith” salary ranges for all positions based on internal data and market research.
- Train Hiring Personnel: Educate HR teams, recruiters, and managers on the legal prohibitions regarding salary history inquiries and the mandatory disclosure rules.
- Update Handbook Policies: Ensure employee handbooks reflect the new protections against retaliation for wage-related inquiries.
- Consult Legal Counsel: Seek expert advice to navigate the specific complexities of the Virginia Wage Payment Act and potential penalties.
