Employer of Record · Virginia

Employer of Record in Virginia.
Federal Contractor Ready. Fully Compliant.

Virginia is home to more federal contractors than any state in the US — and its employment law has evolved to match. From early workers' comp requirements to the landmark Virginia Values Act, WorkGenius becomes your legal employer across Northern Virginia, Richmond, and the entire Commonwealth.

$12.41/hr
State minimum wage
3 employees
Workers' comp coverage trigger
20+
Protected characteristics (Virginia Values Act)

Virginia by the Numbers

State minimum wage
$12.41/hr
Scheduled increases continue annually toward $15/hr
Workers' comp threshold
3+ employees
Much lower than the federal norm — coverage required from the third hire
Paid sick leave
Home care workers
Mandatory paid sick leave for home health aides and personal care workers only
Final paycheck
Next regular payday
Applies to both terminations and resignations
Non-competes
Banned below ~$67K
Void for workers at or below average weekly wage; burden on employer to prove validity above
E-Verify
State contractors
Required for employers with 50+ employees who hold state contracts
The Defining Law

Virginia Values Act (2020)

The Virginia Values Act, effective July 2020, transformed Virginia from one of the least protective states for workers into one of the most comprehensive. It prohibits discrimination based on 20+ protected characteristics — including sexual orientation, gender identity, and military status — and applies to employers with as few as 15 employees.

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The ABC Test
  • Prohibits discrimination and harassment based on race, color, religion, sex, sexual orientation, gender identity, national origin, pregnancy, age, disability, and more
  • Applies to employers with 15 or more employees — same threshold as federal Title VII
  • Allows private right of action: employees can sue employers directly in state court
  • Remedies include back pay, reinstatement, compensatory damages, and attorney's fees
  • Virginia also passed the Overtime Wage Act (2021), strengthening overtime enforcement at the state level
  • WorkGenius maintains Virginia Values Act-compliant hiring processes and HR documentation for all clients
Virginia Coverage

What WorkGenius Handles for Virginia

Virginia's employment framework has expanded significantly since 2020. WorkGenius manages the full compliance picture — from early workers' comp triggers to federal contractor requirements.

Workers' Compensation (3+ employees)

Coverage in place before your third Virginia employee starts. WorkGenius manages policy administration, claims support, and premium payments.

Virginia Payroll & Overtime

State income tax withholding, Virginia Overtime Wage Act compliance, and accurate payroll processing for salaried and hourly workers.

Virginia Values Act Compliance

Hiring workflows, performance documentation, and HR processes aligned with the Virginia Values Act's expanded anti-discrimination protections.

Non-Compete Validation

Employment agreements include non-competes only where compensation exceeds the annual average weekly wage threshold — with clear business justification and enforceable scope.

E-Verify for State Contractors

E-Verify enrollment and ongoing employment eligibility verification managed for clients holding Virginia state contracts with 50+ employees.

Termination & Final Pay

Final paycheck issued by the next regular payday. Compliant separation documentation and Virginia-specific COBRA notices handled.

Virginia Compliance Dashboard
3 workers · All compliant
Live
Virginia Workforce Compliance Check
Passed
Workers' comp coverage active (3+ employees)
Non-compete valid only above average weekly wage threshold
New hire reporting submitted within 20 days to VEC
This Week's Payroll
$12.41
Base/hr
$18.62
OT rate (1.5×)
Auto
Calculated
Weekly invoice sent
Every Friday · All-in rate
Sent
Technology-Powered

How WorkGenius Handles Virginia EOR

Virginia is the largest federal contractor market in the US — and its employment law reflects it. From the lowest workers' comp trigger in the country (3 employees) to expanded Virginia Values Act protections, WorkGenius ensures every hire is compliant from day one.

  • Workers' Comp from Employee #3
    Virginia requires workers' compensation coverage once you have three or more employees — one of the lowest thresholds in the country. WorkGenius ensures coverage is in place before your third Virginia hire.
  • Virginia Values Act Compliance
    The Virginia Values Act prohibits discrimination on the basis of 20+ protected characteristics — including sexual orientation and gender identity — for all employers with 15 or more employees. WorkGenius ensures hiring and HR processes align with these requirements.
  • Non-Compete Restrictions Automated
    Virginia bans non-competes for workers earning at or below the average weekly wage (~$67K/year). WorkGenius validates compensation thresholds before including any restriction in an employment agreement.
  • One Weekly Invoice
    A single, transparent weekly invoice covering payroll, taxes, and benefits. No surprises, no hidden fees.

Other Key Virginia Compliance Areas

Virginia's legal landscape has evolved rapidly — particularly in worker protections and pay fairness.

Virginia Overtime Wage Act

Since 2021

Enacted in 2021, Virginia's Overtime Wage Act created a state-level right to overtime pay — allowing employees to file state claims in addition to federal FLSA claims. Employers cannot rely on FLSA exemptions alone; Virginia's definitions must also be met.

Pay Transparency (Voluntary)

Legislation pending

Virginia does not yet mandate salary ranges in job postings, but legislation is advancing. Employers operating across states should publish pay ranges in Virginia job postings to maintain consistency — and to prepare for an expected mandate.

Non-Compete Ban (Below Threshold)

~$67K threshold

Virginia's HB 330 (2020) bans non-compete agreements for workers earning at or below the average weekly wage (approximately $67,000/year). The burden falls on employers to prove any restriction is enforceable. WorkGenius validates compensation before any agreement is signed.

Workers' Comp — Early Trigger

3 employees

Virginia requires workers' compensation coverage with three or more employees — far lower than many states. Employers who skip coverage until they reach a larger headcount face significant exposure and fines.

Simple Process

How It Works in Virginia

From first conversation to fully compliant employment — typically within days.

1

Tell Us What You Need

Workers, roles, locations, and start dates. We tailor the setup to your needs.

2

We Assess & Classify

Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.

4

We Handle Ongoing

Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.

Virginia EOR: Common Questions

We only have a few employees in Virginia — do we really need workers' comp?

Yes. Virginia requires workers' compensation coverage as soon as you have three or more employees — compared to the 5-employee threshold in many other states. Employers without coverage are personally liable for all workplace injury costs and face civil penalties. WorkGenius ensures coverage is in place before your third Virginia employee's first day.

Can we include a non-compete in our Virginia employment agreements?

Only for higher earners. Virginia law bans non-competes for workers earning at or below the average weekly wage (approximately $67,000/year in 2024). Above that threshold, non-competes can be enforceable — but the employer bears the burden of proving the restriction is reasonable in scope and duration. WorkGenius validates compensation thresholds and drafts agreements that meet Virginia's enforceability standards.

What is the Virginia Values Act and how does it affect our hiring?

The Virginia Values Act (2020) is Virginia's equivalent to federal Title VII — but broader. It prohibits discrimination and harassment based on 20+ protected characteristics, including sexual orientation, gender identity, pregnancy, and veteran/military status. It applies to employers with 15 or more employees and allows employees to sue directly in state court. WorkGenius maintains compliant hiring workflows, offer letters, and HR processes for all Virginia clients.

We hold a federal contract. Does E-Verify apply?

It depends. Federal contractors are generally required to use E-Verify under the federal contractor E-Verify rule. Virginia additionally requires state contractors with 50 or more employees to use E-Verify for new hires. WorkGenius manages E-Verify enrollment and employment eligibility verification for all applicable clients.

How does Virginia's Overtime Wage Act differ from federal overtime rules?

Virginia's Overtime Wage Act (2021) creates a parallel state enforcement mechanism for overtime violations. While the substantive rules largely mirror the FLSA, employees can pursue Virginia claims independently — and some FLSA exemptions are interpreted more narrowly under state law. Virginia employers cannot assume federal compliance is sufficient. WorkGenius ensures overtime is calculated and paid correctly under both federal and Virginia standards.

Employer of Record

Ready to Employ in Virginia Compliantly?

WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.

No commitment required. Free consultation included.