Summary of July 2025 Labor Law Updates for Arlington, Virginia
Brought to you by our Arlington, VA team at HKM Employment Attorneys. This post offers a clear, practical update for employees, HR professionals, and compliance leaders on new labor and employment law developments in Virginia for July 2025.
July 2025 brought significant changes to Virginia’s labor and employment landscape—expanding non-compete prohibitions, protecting minors in content creation, bolstering employer liability, introducing hospital workplace violence reporting, and setting state-level overtime pay standards. Employers should act promptly to review policies, update documentation, ensure classification accuracy, and maintain compliance. If you’d like assistance implementing these changes or assessing the impact on your organization, please contact HKM Employment Attorneys: https://hkm.com.
July 2025 Legislative and Regulatory Developments
Expansion of Non-Compete Ban – SB 1218 (Non-Exempt Employees) — Legislation
Date Effective: July 1, 2025
Summary: Amendments to Va. Code § 40.1-28.7:8 now expand the prohibition of non-compete agreements beyond “low-wage” workers to include all employees classified as non-exempt under the Fair Labor Standards Act (FLSA)—that is, workers eligible for overtime pay, regardless of earnings level. Pre-July 1 agreements remain valid.
Implications: Employers must audit employee classifications, update restrictive covenants in offer letters, handbooks, severance agreements, and ensure proper workplace posting of the statute or DOLI-approved summary.
Protections for Children in Content Creation — HB 2401/SB 998 — Legislation
Date Effective: July 1, 2025
Summary: Requires content creators whose content regularly features children under age 16 to keep detailed records of the child’s involvement and earnings, allocate a portion of gross earnings into a trust for the child accessible at age 18, prohibit exposure to hazards or hazardous equipment, and require direct adult supervision.
Implications: Relevant to social media influencers, influencer marketing agencies, and entertainment firms—must revise practices, agreements, and documentation protocols to ensure trust-fund compliance and safety standards.
Expanded Civil Liability for Employers – HB 1730 — Legislation
Date Effective: July 1, 2025
Summary: Employers may now be held civilly liable when employees cause personal injury or wrongful death to “vulnerable victims,” based on foreseeability and failure to exercise reasonable supervision or appropriate hiring.
Implications: Employers—particularly in care, service, or public sectors—should review supervision protocols, hiring practices, and risk assessments related to vulnerable individuals.
Workplace Violence Reporting Requirement for Hospitals — Regulation
Date Effective: July 1, 2025
Summary: Hospitals must now establish a workplace violence incident reporting system that tracks, documents, and analyzes workplace violence events, notify staff of the system, and implement anti-retaliation protections for those reporting incidents.
Implications: Healthcare employers must develop incident tracking systems, communicate policies, and ensure staff feel safe reporting without fear of retaliation.
Virginia Overtime Wage Act — State-Wide Overtime Pay for State Employers
Date Effective: July 1, 2025
Summary: All state employers must now pay 1½ times the regular rate for hours worked beyond 40 in a workweek.
Implications: Impacts all state agencies—HR and payroll departments must review overtime calculation processes and ensure consistent compliance.
Other Noteworthy Developments
Minimum Wage Increase Scheduled for 2026
Effective: January 1, 2026
Summary: Due to CPI-based adjustment, Virginia’s minimum wage will rise to $12.77/hour—a 36-cent increase from 2025’s $12.41/hour.
Implications: While this change occurs in 2026, employers should begin planning to adjust payroll budgets accordingly and communicate with affected staff.
Broader Legislative Changes (Non–Labor Specific)
Virginia also enacted other laws effective July 1 addressing areas beyond labor law, including:
- Increased employer liability for employee-caused sexual assault or intentional harm.
- Various public‑safety and social policy reforms (e.g., seat belt enforcement, cellphone bans in schools, environmental rules).
Conclusion: Looking Back on Virginia Labor Law Updates from July 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 to learn how we’re here to champion your case locally.
