Virginia Employment Law: What Employers Need to Know About Termination

Understanding the intricacies of employment law is crucial for any employer, and in Virginia, this notion holds true, especially when it comes to the topic of termination. Making informed decisions about how to approach termination can prevent costly legal battles and foster a fair and just workplace environment.

Here’s what employers in Virginia need to know about the legal landscape surrounding termination:

1. At-Will Employment:

Virginia is an at-will employment state, meaning that an employer can terminate an employee at any time, for any lawful reason, or even for no reason at all. Similarly, employees can resign without reason or notice. However, this freedom does not mean employers are free from all restrictions when terminating employees.

2. Unlawful Termination:

Despite the at-will doctrine, certain terminations can be considered unlawful. Employers cannot fire employees for discriminatory reasons based on protected classes such as race, color, religion, sex, national origin, disability, age (40 or older), veteran status or genetic information, as specified under federal laws like Title VII, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Virginia Human Rights Act, the Virginia whistleblower statute, Virginia Code Section 40.1-27.3, the Pregnant Workers Fairness Act (PWFA), and other applicable laws.

To learn more about protected classes under Virginia law, and federal laws that apply to Virginia employers, click here.

3. Retaliation Protections:

In Virginia, employers are prohibited from terminating employees as retaliation for participating in legally protected activities. This includes filing a complaint about workplace discrimination or harassment or engaging in other whistleblower activities.

4. Employment Contracts and Agreements:

If an employee has an employment contract or collective bargaining agreement, the terms of these documents can supersede the at-will employment doctrine. These contracts may outline specific circumstances under which an employee can be terminated, as well as procedures that must be followed.

5. Notice and Severance:

Virginia law does not require employers to provide a notice of termination or severance pay unless stipulated by a contract. However, providing severance can be beneficial for risk management, especially if accompanied by a release of claims.

6. Final Paychecks:

Employers in Virginia are required to issue any outstanding wages, including bonuses or earned but unused vacation pay, by the next regular payroll date.

7. COBRA and Benefits:

While not specific to Virginia, employers with 20+ full time employees need to ensure compliance with federal COBRA regulations, which require offering continued health insurance coverage to employees who have been terminated under certain conditions.

Virginia has its own “mini-COBRA” law, which applies to employers with between 2-19 employees that offer a group health insurance plan, so Virginia employers should be mindful of Virginia mini-COBRA requirements when carrying out an employee termination.

8. Documenting Terminations:

Proper documentation is essential. Employers should keep detailed records of any performance issues, disciplinary actions, and the reasons for termination. This documentation can be crucial if the termination is legally challenged.

9. Legal Counsel:

Given the complexity and potential risks surrounding employment terminations, Virginia employers should consider seeking legal counsel to navigate the process correctly and ensure compliance with all relevant laws. Just crossing your fingers and hoping that a terminated employee will not sue your company is not a good strategy to keep your company safe from legal action.

By being well-versed in Virginia’s employment laws regarding termination, employers can handle these situations effectively, minimizing risks and contributing to maintaining a fair and compliant workplace.

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