How to Hire a New Employee in Virginia (2026)
Reviewed by DocDraft Legal Team · Virginia · Last updated 2026-05-18
Onboarding a new hire in Virginia pulls in a specific set of state rules on top of the federal I-9 and W-4 baseline. In Virginia, $12.77 per hour effective January 1, 2026 through January 1, 2027 (CPI-U-adjusted from 2025 rate of $12.41). The Virginia new-hire reporting portal accepts reports due all employers with business operations in the state of virginia are required to report all newly hired or rehired employees who live or work in virginia within twenty (20) days of the employees' first day on the job. state and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946. What follows is the Virginia-specific compliance path on wages, registration, workers' comp, E-Verify, and at-will status.
Key Considerations
The Virginia minimum wage is the threshold every hire-side calculation starts from. $12.77 per hour effective January 1, 2026 through January 1, 2027 (CPI-U-adjusted from 2025 rate of $12.41)
Three risk-side rules round out the Virginia compliance picture. Workers' compensation coverage: 3 E-Verify posture: Any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program. At-will employment posture: at-will
Within the first month of a Virginia hire, two agency filings are due. New-hire reporting: All employers with business operations in the State of Virginia are required to report all newly hired or rehired employees who live or work in Virginia within twenty (20) days of the employees' first day on the job. State and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946.
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Relevant Documents
In Virginia the hire-side document stack runs from federal Form I-9 through Form W-4 (federal) and the Virginia state withholding addendum (where applicable), then the Virginia new-hire report (All employers with business operations in the State of Virginia are required to report all newly hired or rehired employees who live or work in Virginia within twenty (20) days of the employees' first day on the job. State and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946.), then workers' compensation enrollment paperwork (3).
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Virginia Human Rights Act
Prohibits employment discrimination based on race, color, religion, national origin, sex, pregnancy, childbirth, age, marital status, sexual orientation, gender identity, disability, or military status. Employers must ensure their hiring practices comply with these anti-discrimination provisions.
Virginia Minimum Wage Act
Sets minimum wage requirements for employees in Virginia. As of January 1, 2023, the minimum wage in Virginia is $12.00 per hour, with scheduled increases in future years. Employers must comply with these wage requirements when hiring new employees.
Virginia New Hire Reporting Law
Requires employers to report newly hired employees to the Virginia New Hire Reporting Center within 20 days of their hire date. This information is used for child support enforcement and to prevent unemployment insurance fraud.
Virginia Employment Eligibility Verification Law
Requires employers to verify the identity and employment eligibility of all employees by completing the federal Form I-9. Virginia employers must comply with both federal and state verification requirements.
Virginia Workers' Compensation Act
Requires employers with more than two employees to carry workers' compensation insurance. New employees must be covered from their first day of employment, and employers must provide information about workers' compensation rights.
Virginia Unemployment Compensation Act
Requires employers to pay unemployment insurance taxes for new employees. Employers must register with the Virginia Employment Commission and report wages for unemployment insurance purposes.
Regional Variances
Northern Virginia
Fairfax County has additional local ordinances that affect employers, including a Human Rights Ordinance that prohibits discrimination based on more protected classes than Virginia state law. Employers in Fairfax County should be aware of the county's higher minimum wage requirements compared to other parts of Virginia.
Arlington County has specific local employment regulations, including paid sick leave requirements for certain employers and stronger anti-discrimination protections. Employers must also comply with Arlington's living wage ordinance for county contractors.
Hampton Roads Region
Virginia Beach has specific regulations for seasonal employers related to tourism industry. Employers must comply with additional reporting requirements for seasonal workers and may have different tax obligations based on the seasonal nature of employment.
Norfolk has local ordinances affecting employers with operations near military installations, including specific security clearance considerations and veteran hiring preferences for city contractors.
Richmond Metropolitan Area
Richmond has enacted a Ban the Box ordinance that prohibits employers from asking about criminal history on initial job applications. The city also has specific requirements for employers regarding public transportation benefits and parking that differ from surrounding counties.
Henrico County has different zoning requirements that may affect home-based businesses and remote work arrangements. Employers should verify compliance with local business license requirements which differ from neighboring jurisdictions.
Suggested Compliance Checklist
File the federally-required new-hire report
On hire days after startingThe Virginia portal is All employers with business operations in the State of Virginia are required to report all newly hired or rehired employees who live or work in Virginia within twenty (20) days of the employees' first day on the job. State and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946.
Activate an employer UI tax account in Virginia
Before first payroll days after startingRegistration runs
Process federal Form I-9 employment-eligibility verification
Before first hire days after startingSection 1 by day one of work, section 2 within 3 business days, retained for the longer of 3 years after hire or 1 year after termination.
Collect federal Form W-4 and any Virginia state-tax withholding addendum required by the state revenue agency
On hire days after startingThe federal Form W-4 is the floor; the state addendum (where the state has its own withholding regime) drives state income-tax deductions.
Look up the Virginia workers'-compensation employer-count or payroll trigger
On hire days after startingStatutory posture: 3
Determine whether E-Verify enrollment is required or optional in Virginia
Before hire days after startingAny employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program.
Reflect the Virginia at-will rule in the offer letter and handbook acknowledgements
Before first hire days after startingat-will
Display the Virginia mandatory employment posters at the worksite
Before hire days after startingVirginia Occupational Safety and Health Poster; Seizure First Aid; Reasonable Accommodations for Pregnancy; Human Trafficking poster (for Adult Entertainment Businesses and Truck Stops); Unemployment Insurance: Notice to Workers (VEC-B-29); Workers Compensation Insurance: Workers' Compensation Notice (VWC 1); Virginia Earned Income Tax Credit Poster; Virginia Credit for Low-Income Individuals Poster
| Task | Description | Document | Days after starting |
|---|---|---|---|
| File the federally-required new-hire report | The Virginia portal is All employers with business operations in the State of Virginia are required to report all newly hired or rehired employees who live or work in Virginia within twenty (20) days of the employees' first day on the job. State and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946. | - | On hire |
| Activate an employer UI tax account in Virginia | Registration runs | - | Before first payroll |
| Process federal Form I-9 employment-eligibility verification | Section 1 by day one of work, section 2 within 3 business days, retained for the longer of 3 years after hire or 1 year after termination. | - | Before first hire |
| Collect federal Form W-4 and any Virginia state-tax withholding addendum required by the state revenue agency | The federal Form W-4 is the floor; the state addendum (where the state has its own withholding regime) drives state income-tax deductions. | - | On hire |
| Look up the Virginia workers'-compensation employer-count or payroll trigger | Statutory posture: 3 | - | On hire |
| Determine whether E-Verify enrollment is required or optional in Virginia | Any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program. | - | Before hire |
| Reflect the Virginia at-will rule in the offer letter and handbook acknowledgements | at-will | employment-offer-letter | Before first hire |
| Display the Virginia mandatory employment posters at the worksite | Virginia Occupational Safety and Health Poster; Seizure First Aid; Reasonable Accommodations for Pregnancy; Human Trafficking poster (for Adult Entertainment Businesses and Truck Stops); Unemployment Insurance: Notice to Workers (VEC-B-29); Workers Compensation Insurance: Workers' Compensation Notice (VWC 1); Virginia Earned Income Tax Credit Poster; Virginia Credit for Low-Income Individuals Poster | - | Before hire |
Frequently Asked Questions
Virginia requires the new-hire report to be filed All employers with business operations in the State of Virginia are required to report all newly hired or rehired employees who live or work in Virginia within twenty (20) days of the employees' first day on the job. State and federal laws require employers to report paid individuals regardless of whether the individuals are considered employees by federal tax code standards. § 63.2-1946. The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
In Virginia, the E-Verify posture for private employers is: Any employer with more than an average of 50 employees for the previous 12 months entering into a contract in excess of $50,000 with any agency of the Commonwealth to perform work or provide services pursuant to such contract shall register and participate in the E-Verify program. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
$12.77 per hour effective January 1, 2026 through January 1, 2027 (CPI-U-adjusted from 2025 rate of $12.41)
Other Virginia guides
Setting Up a Business Partnership in Virginia (2026)
Small Business Loan Guide for Virginia (2026)
Setting Up a Manufacturing Relationship in Virginia (2026)
Landlord Rules in Virginia: Renting Out Property (2026)
How to File a Small Claims Lawsuit in Virginia (2026)
How to Dispute a Bill in Virginia (2026)
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