Summary of August 2025’s Employment and Labor Law Updates for Arlington, Virginia
This post reviews key labor and employment law developments in Virginia during August 2025—legislation, regulations, court rulings, and agency actions affecting employers, employees, and HR professionals. Brought to you by HKM Employment Attorneys, intended to help businesses and workers stay compliant and informed.
Over the summer of 2025, Virginia has enacted several significant labor & employment law changes that are now in effect (or will become effective soon). Key areas affected include non-compete agreements, protections for minors in content creation, expanded employer liability toward vulnerable victims, unemployment benefits, and discrimination law via federal precedent. Employers in Virginia should be reviewing and updating their policies, training, contracts, and postings. Employees and HR professionals need to be aware of new rights and protections.
Expansion of Non-Compete Restrictions — Legislation
Date: Effective July 1, 2025 (but heavily discussed in August)
Summary:
Under the law, non-competition agreements with such non-exempt employees are prohibited (for covenants entered into or renewed on or after July 1, 2025). Agreements prior to that date are not affected.
Implications:
All employers in Virginia need to review their non-compete (restrictive covenant) policies, agreements, handbooks, and classification of employees (exempt vs non-exempt). Misclassifying someone as exempt could expose the employer to liability under this law. Policies must be updated; especially for new hires or renewals after July 1, 2025. HR and legal departments should ensure workplace postings are updated to reflect the new law.
Unemployment Compensation Benefit Increase — Legislation
Date: Effective January 1, 2026 (but legislated in August 2025)
Summary:
HB 1766 / SB 1056 increases weekly unemployment benefits by $52 for eligible individuals. The law also directs agencies (Virginia Employment Commission, etc.) to study whether benefit amounts should adjust annually with changes in the average weekly wage.
Implications:
Employers should anticipate higher unemployment insurance costs (tax rates, contributions) starting in 2026.
Adjust budgeting accordingly; ensure systems are ready to respond to changes in unemployment benefit levels.
Conclusion: Looking Back on Virginia’s Labor Law Updates from August 2025
If you’ve been following recent Virginia court decisions and feel concerned about workplace bias or contract disputes right here in Arlington, remember that you don’t have to face these challenges alone. Our Arlington team at HKM Employment Attorneys has successfully advocated for Northern Virginia employees—whether they work for federal agencies or major employers in Fairfax County—across a wide range of issues, from discrimination and wage disputes to contract and ethics matters. With more than $250 million recovered for clients and a reputation for fearless representation, we’ll work to secure your legal rights while you move forward from recent case news. Reach out to our Arlington office to discuss your situation and learn how we’re here to champion your case locally.
