Virginia Legislation Update 2023

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Hey Compliance Warriors!


If you have employees that work in Virginia, this post is for you! The Virginia legislative session of 2023 concluded last month, featuring less activity than in previous years due to the politically divided government. This summary highlights some of the employment-related bills that were passed during this term.


Employee Social Security Numbers Usage

Governor approved Senate Bill 1040 on March 21, 2023, which restricts the use of employees’ social security numbers in specific ways. The bill adds Virginia Code § 40.1-28.7:10, forbidding employers from using an employee’s social security number or a derivative thereof for identification purposes. Employers are also prohibited from using such numbers on employee identification cards or badges, access cards, or similar items. Violators of this law face a civil penalty of up to $100 per infraction, and the law will be effective from July 1, 2023.


Nondisclosure, Confidentiality & Non-Disparagement Agreements Pertaining to Sexual Harassment Claims

House Bill 1895, approved by the Virginia governor, prevents employers from requiring employees or potential employees to sign or renew any agreements that conceal the details of sexual harassment claims as a condition of employment. These provisions are void and unenforceable. This bill amends Virginia Code § 40.1-28.01 and extends the prohibition of such agreements to include non-disparagement clauses. The law will be effective from July 1, 2023.


Sub-Minimum Wage Employees

The Virginia House of Delegates passed House Bill 1924 on April 12, 2023, eliminating the exception for employers to pay sub-minimum wages to individuals with disabilities. Starting July 1, 2023, employers must pay disabled workers at least the minimum wage in Virginia.


Organ Donation Leave

On April 12, 2023, the Virginia House of Delegates enacted Senate Bill 1086, providing legally protected unpaid leave for organ and bone marrow donations. Employers with 50 or more employees must grant eligible employees up to 60 business days for organ donations and up to 30 business days for bone marrow donations per 12-month period. The law protects employees from retaliation and ensures they receive equivalent pay, benefits, and other conditions upon returning from leave. This law will be effective from July 1, 2023.


Virginia Employment Commission (VEC) Subpoenas

Governor approved House Bill 2010, granting VEC attorneys the power to issue subpoenas related to investigations or adjudications under the Virginia Unemployment Compensation Act. Parties can request to quash the subpoena in a Virginia circuit court before the date of production.


Employers should review these new provisions and update their employment policies and agreements before the effective date of July 1, 2023. Consulting with legal counsel is recommended to ensure compliance with these changes.


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