Virginia Enacts July 1 Pay Transparency Rules, Expands Noncompete Limits

Q: Virginia now requires salary ranges in job ads. What loophole might make this new transparency rule meaningless for applicants?

The biggest loophole is that employers can likely comply by posting very broad “good-faith” pay ranges that tell applicants almost nothing useful. Virginia’s law requires a wage or salary range in job ads, but the weak point is the phrase “good faith.” If regulators do not strictly define how narrow or realistic that range must be, an employer could advertise something like $50,000 to $200,000 and still argue it met the rule. That would satisfy the letter of the law while undermining its purpose, because applicants still would not know the realistic pay for the job. Another weakness is the law’s cure period for posting violations. If a job ad omits a range or uses a questionable one, the employer gets 15 business days after written notice to fix it. In practice, that can reduce the pressure to get postings right from the start and delay meaningful disclosure until someone complains. There is also a practical gap for some remote jobs. Because the law applies to employers with Virginia employees, some companies may try to avoid the requirement by excluding Virginia applicants from remote postings altogether. So the rule’s value will depend heavily on enforcement. If Virginia allows overly wide ranges or easy post-hoc corrections, applicants may get nominal transparency without real insight into what a job is actually expected to pay.

2 articles · Updated · WHSV · Jul 8

July 1 brought new Virginia hiring rules requiring employers to post good-faith wage or salary ranges for public job listings and internal promotion opportunities.
The law also bars employers from asking about salary history or using it in hiring or pay decisions, and prohibits retaliation against workers who request a pay range or decline to disclose past pay.
Employers now must set compensation ranges before advertising openings, shifting more upfront budgeting and pay planning onto companies.
Noncompete restrictions widened at the same time: healthcare employers generally can no longer require healthcare professionals to sign them, and employers cannot enforce them against workers laid off without severance.