Yesterday, we explored Virginia's new pay-transparency and salary-history ban under § 40.1-28.7:12. The 2026 session also made consequential changes for people already at work: the remedies available for unpaid wages, the treatment of worker misclassification, and accountability in larger construction projects.
With the enactment of House Bill 238 (Chapter 1040), effective July 1, 2026, Virginia has put teeth into its labor laws. This landmark legislation unifies enforcement across distinct wage violations, expands upstream liability, and provides massive financial penalties against employers who cut corners with your paycheck. Whether you work in an office, on a construction site, or from home, here is a breakdown of what these sweeping statutory changes mean for your paycheck, your security, and your rights. This is general information, not legal advice; the facts, timing, and applicable federal law can materially change a claim.
1. A unified civil-remedy framework for wage claims
HB 238 directs claims involving the Virginia Minimum Wage Act, Virginia overtime provisions, and worker misclassification to the remedies in § 40.1-29(K). It also expands the statutory definition of wages to include, among other things, minimum wages, overtime wages, legally required prevailing wages, commissions, tips, bonuses, and damages available for worker misclassification.
For a qualifying action, § 40.1-29(K) authorizes a court to award:
- The wages owed;
- An additional equal amount as liquidated damages;
- Prejudgment interest at eight percent per year from the date wages were due; and
- Reasonable attorney fees and costs.
If the court finds that an employer knowingly failed to pay wages, the statute requires an award equal to three times the wages due, plus reasonable attorney fees and costs. The statute defines “knowingly” to include actual knowledge, deliberate ignorance, or reckless disregard; it does not require proof of a specific intent to defraud.
2. Worker misclassification now carries the same civil-remedy structure
Virginia Code § 40.1-28.7:7 presumes that a person who performs services for remuneration is an employee of the paying party unless the party proves independent-contractor status under IRS guidelines. HB 238 connects a successful misclassification claim to the remedies available under § 40.1-29(K).
That does not mean every person paid on a 1099 is automatically an employee. Classification remains fact-specific. But the presumption and the available remedies make careful classification, recordkeeping, and prompt review of a dispute more consequential. A civil action under this section must be brought within three years after accrual.
3. New exposure for general contractors on certain construction projects
For construction contracts entered into on or after July 1, 2026, § 11-4.6 deems a general contractor and subcontractor jointly and severally liable for wages due to the subcontractor's employees in qualifying circumstances. The provision is limited: it applies to non-single-family-residential projects valued above $500,000 (including an aggregate of projects under one contract) and where the general contractor knew or should have known that the subcontractor was not paying all wages due.
When those conditions are met, the general contractor is treated as the employer for § 40.1-29 purposes. The subcontractor may owe indemnity under the construction contract, but that allocation does not erase the employee-facing statutory exposure.
4. The new good-faith defense makes written notice and a prompt cure especially important
For actions commenced on or after July 1, 2026, § 40.1-29(P) gives an employer a potential defense to additional damages and penalties if it proves both good faith and reasonable grounds for believing its conduct complied with the article. But an employer cannot claim that defense unless it cures the violation within 14 days after notice by paying all wages unlawfully withheld.
For employees, that makes accurate records and a clear written notice especially useful. Preserve paystubs, time records, schedules, contracts, and relevant messages. A written message can clarify what was reported and when; it is not a substitute for tailored legal advice, and it should be accurate and measured.
What this means in practice
HB 238 makes Virginia's wage-law framework more coherent by placing several kinds of wage disputes within the same remedial structure. Workers should preserve records early. Employers and contractors should review payroll, classification, subcontractor oversight, and their process for receiving and curing wage complaints.
Attorney advertising. This post provides general information, not legal advice. Reading it does not create an attorney-client relationship. Wage, overtime, misclassification, construction-payment, and retaliation claims are fact- and deadline-specific; consult a lawyer about your circumstances.