Virginia Expands Pay Equity and Transparency Obligations

Effective July 1, 2026, Virginia House Bill 636 expands employer obligations relating to wage and salary history inquiries and pay transparency by adding new § 40.1‑28.7:12 to the Code of Virginia. The law is designed to promote pay equity by limiting the use of prior compensation information in hiring decisions and by requiring employers to disclose wage or salary ranges upfront in job postings.

Under HB 636, employers may not seek, request, or rely on the wage or salary history of a prospective employee when making hiring or compensation decisions. This prohibition applies to direct questions, indirect inquiries, or background checks intended to obtain prior pay information. The law provides a narrow exception when an applicant voluntarily and without prompting discloses wage or salary history, but even in those circumstances, employers must proceed cautiously to ensure the disclosure was not elicited. Employers are also expressly prohibited from retaliating against applicants or employees who refuse to provide wage history information.

In addition, HB 636 establishes a broad salary range transparency requirement. Employers must disclose the wage or salary range for a position in all job postings, and those ranges must be set in good faith, reflecting the employer’s genuine expectations for the role. The statute also protects both prospective and current employees who request wage or salary range information from retaliation. Enforcement authority rests with the Virginia Attorney General, who may bring civil actions to enforce the statute and assess penalties. Employers face civil penalties of up to $1,000 for a first violation and up to $5,000 for subsequent violations, and may also be liable to aggrieved individuals for actual damages and other legal or equitable relief ordered by the court.

HB 636 includes a limited opportunity to mitigate risk: employers that receive written notice of a job‑posting violation may cure the violation within 15 business days to avoid private enforcement actions.