Virginia Termination Laws

Employers and employees in Virginia must thoroughly understand the state’s termination laws to navigate them effectively and avoid legal pitfalls.

This article covers all one needs to know about Virginia’s termination laws. It packs in the basics with some legal know-how, ensuring readers are comprehensively prepared whether managing terminations or facing one.

This Guide Covers

Legal Considerations for Termination in Virginia
At-Will Employment in Virginia
Lawful Termination in Virginia
Legal Protections During Termination in Virginia
Terminated Employee Benefits in Virginia
Layoffs in Virginia
Resignations in Virginia
Legal Cases Related to Wrongful Termination in Virginia

Legal Considerations for Termination in Virginia

Handling terminations in Virginia demands a solid understanding of both the rules and the finesse to apply them effectively. Here’s a rundown of what employers need to keep in mind:

  • Discrimination Laws: Terminating an employee based on protected characteristics, such as race or religion, is not only unethical but also illegal under several state and federal laws, such as Virginia’s Human Rights Act and Title VII of the Civil Rights Act. 
  • Retaliation: Virginia and federal laws protect employees from termination for engaging in legally protected activities such as whistleblowing or participating in a discrimination lawsuit.
  • Breach of Contract: Employers must honor the terms of any existing employment contract. Violations can lead to serious legal consequences.
  • Severance Agreements: When employers offer severance, it’s essential to ensure that the agreement complies with legal standards and includes releasing claims to protect against future litigation.
  • Final Pay Requirements: The Code of Virginia § 40.1-29 mandates that employers pay all due wages, including accrued and unused leave, by the next scheduled pay period. This ensures timely compensation for terminated employees and helps employers comply with state labor regulations.
  • COBRA Notification: Employers subject to The Consolidated Omnibus Budget Reconciliation Act (COBRA) must inform terminated employees about their rights to continued health insurance coverage.
  • Unemployment Benefits: When an employee is fired, they may qualify for unemployment insurance. Employers are responsible for providing accurate details to the Virginia Employment Commission to support these claims.
  • Medical Marijuana Laws: Employers in Virginia cannot fire or discipline employees for legally using medicinal cannabis oil, as per state law. This protection excludes law enforcement officers and doesn’t cover work impairment or federal law conflicts. Employers also need not hire anyone failing federal THC limits in drug tests.

At-Will Employment in Virginia

What is At-Will Employment?

At-will employment allows either the employer or employee to end the employment relationship at any time, for any reason, or for no reason, without prior notice.

In Virginia, this principle means that employment can be terminated at any time by either party, as long as the termination is not based on discriminatory or retaliatory reasons.

What are the Exceptions to At-Will Employment in Virginia?

While Virginia follows the at-will doctrine, several exceptions protect employees from unjust terminations:

  • Public Policy Violations: Firing an employee in ways that violate public policy, such as for refusing to participate in illegal activities or taking legally protected leave, constitutes an exception to at-will employment in Virginia.
  • Contractual Agreements: If the employer and employee have a contract (including collective bargaining agreements) that sets conditions for termination, such as requiring a certain notice period or establishing grounds for dismissal, the terms of the contract will prevail over at-will principles.This ensures adherence to the agreed-upon conditions, effectively preventing a breach of contract.

Employment Under Contract in Virginia

Employment contracts establish clear terms between employers and employees, aiding in the hiring of skilled workers and providing benefits to regular employees and contractors.

The contracts outline various elements such as job titles, duties, work hours, and details regarding salary and benefits like health insurance and retirement plans. Additionally, they cover work schedules,vacation policies and require adherence to company policies. Termination clauses, which specify how employment can end, and confidentiality and non-compete clauses that protect the employer’s interests are also key components of these contracts.

While Virginia’s at-will employment allows employers to fire without cause, a detailed contract can provide employees with enhanced rights and protections, overriding the at-will doctrine.

Lawful Termination in Virginia

Legal Grounds for Termination in Virginia

In Virginia, employers can legally fire employees for various reasons as long as the termination is not unlawful or discriminatory. Some common grounds for dismissal include:

  • Performance Issues: Employers in Virginia have the right to dismiss employees due to inadequate job performance. This is permissible only if the employer has fairly communicated expectations and given the employee a reasonable chance to meet these standards. Also, all performance issues must be thoroughly documented. 
  • Misconduct: Virginia employers can also fire employees for misconduct. This includes violation of company policies, unethical behavior, or illegal activities. To ensure the termination is justified and defendable, all incidents of misconduct must be clearly documented and substantiated.

How Do I File a Wrongful Termination Claim in Virginia?

When employees are wrongfully terminated in Virginia, they should start collecting documents such as employment contracts, communications, and witness statements. These pieces of evidence are key for proving the wrongful nature of the termination.

To file a claim, employees should approach Virginia’s Office of Civil Rights (OCR), which investigates discrimination complaints. Terminated employees can file online for faster processing or submit a paper complaint via mail. Also, Virginia’s OCR has a work-sharing agreement with the Equal Employment Opportunity Commission (EEOC), which allows coordination between state and federal investigations. 

If the outcome from the OCR or EEOC doesn’t resolve the issue, the next step might be to file a lawsuit in Virginia state court. Employees have 300 days from the date of the alleged wrongful termination to file their claim with the EEOC.

Check out our complete guide to firing employees in Virginia for more details.

Legal Protections During Termination in Virginia

State and federal laws provide legal protections to employees during the termination process. Some of the laws that protect Virginia employees include:

  • Title VII of the Civil Rights Act of 1964: As a cornerstone federal law, Title VII of the Civil Rights Act prevents termination based on race, color, religion, sex, and national origin, requiring employers to maintain nondiscriminatory practices.
  • Americans with Disabilities Act: The federal Americans with Disabilities Act (ADA) prohibits dismissal based on disability, ensuring that employees with disabilities are treated fairly and respectfully. 
  • Age Discrimination in Employment Act: The Age Discrimination in Employment Act (ADEA) is another federal law that protects employees aged 40 and older from being fired based on their age, thus promoting fairness in employment decisions.
  • Virginia Human Rights Act: The state Virginia Human Rights Act (VHRA) prohibits employment discrimination based on race, color, religion, sex, pregnancy, childbirth or related medical conditions, age, marital status, disability, sexual orientation, gender identity, or military status. This ensures fair treatment throughout all stages of employment, including termination.
  • Virginia Payment of Wage Law: The state Virginia Payment of Wage Law mandates that employers must pay all due wages to terminated or resigning employees by the next regular payday.
  • Virginia Unemployment Compensation Act: Title 60.2 of the Code of Virginia requires employers to provide accurate information to state unemployment agencies for claims. This act governs unemployment benefits, ensuring that employees terminated through no fault of their own receive the necessary support.
  • Virginia Equal Pay Act: § 40.1-28.6 of the Code of Virginia mandates equal pay for employees performing substantially similar work, regardless of gender. This law aims to eliminate wage discrimination and promote fairness in the workplace.
  • Virginia Worker’s Compensation Act: The Virginia Worker’s Compensation Act provides benefits to employees who experience work-related injuries or illnesses. Employers must adhere to specific procedures when terminating employees who are receiving or are eligible for workers’ compensation.
  • Virginia Whistleblower Protection Act: The Virginia Whistleblower Protection Act protects employees who report illegal activities or safety violations from retaliation. This act allows workers to report wrongdoing without fearing losing their job.
  • Virginia Military Service Discrimination Act: § 44-93.4 of the Code of Virginia protects employees from discrimination based on their military service or obligations. It ensures fair treatment and necessary accommodations for military personnel in employment.
  • Cannabis Use and Employee Rights: Employees in Virginia should be aware that despite the legalization of small amounts of cannabis, employers can still maintain drug-free workplaces and require drug testing. Those in safety-sensitive roles or operating machinery may face job restrictions if they test positive for THC. While the law offers limited protections for medicinal cannabis users, a positive drug test following a workplace accident can impact eligibility for workers’ compensation benefits.

Terminated Employee Benefits in Virginia

Terminated employees in Virginia may be entitled to particular benefits depending on the circumstances of their dismissal:

  • Unemployment Insurance: Employees can apply for unemployment benefits through the Virginia Employment Commission soon after being separated from their jobs. It’s best to apply within the first week of termination to ensure timely processing.
  • COBRA Continuation: If eligible, terminated employees can continue their group health insurance coverage for up to 18 months under the Consolidated Omnibus Budget Reconciliation Act (COBRA). 
  • Final Paycheck: Under the Virginia Payment of Wage Law (§ 40.1-29), employers must promptly pay all due wages to terminated employees by the next regular payday. This payment, which covers all earnings for work completed before termination, can be issued via check, direct deposit, or prepaid debit card.
  • Severance Pay: While Virginia law does not require severance pay, it may be offered if outlined in the employee’s contract or company policy.

Layoffs in Virginia

Layoffs happen when employers need to reduce their workforce temporarily or permanently due to factors such as economic downturns, reorganization, or technological changes. Unlike terminations, layoffs are not related to the performance or conduct of individual employees.

Employers conducting large-scale layoffs must comply with federal Worker Adjustment and Retraining Notification (WARN) Act, which mandates advance notice if significant layoffs or facility closures are planned. This law typically applies to companies with 100 or more full-time employees that are laying off a large number of workers or closing a facility.

Employees affected by layoffs in Virginia may be eligible for unemployment benefits through the Virginia Employment Commission, provided they meet eligibility criteria. The benefits are designed to assist the workers in transition. For additional support, laid-off workers can reach out to Virginia’s Rapid Response Services.

Resignations in Virginia

When employees in Virginia choose to leave their jobs voluntarily, they resign. Reasons for resignations can be pursuing a new job, personal life changes, retirement or dissatisfaction with the current job position. Employees who resign voluntarily typically do not qualify for unemployment benefits.

On the other hand, if an employee resigns due to involuntary circumstances like a constructive discharge, where the work environment becomes intolerable, they may be eligible for unemployment benefits.

Legal Cases Related to Wrongful Termination in Virginia

1. City of Norfolk Settles $197,500 in Wrongful Termination Lawsuit

In the lawsuit Jane Bethel v. Norfolk City, former IT staffer Jane Bethel sued for wrongful termination, claiming retaliation for her union activities and support for colleagues reporting discrimination. 

Bethel had worked for the city for 23 years and maintained a record of positive performance reviews. Nonetheless, after a new HR director took office in 2012, she faced increased scrutiny and eventually was fired. The official reasons given for her dismissal included insubordination, policy violations, dishonesty, and inappropriate conduct, citing her unauthorized recordings and unauthorized discussions about disciplinary matters.

The case was settled for $197,500 just before it was scheduled to go to trial, avoiding the potential public release of witness testimonies about discrimination and retaliation within the city. 

Key lessons learned from the case:

  • When firing employees involved in protected activities like union advocacy, employers must ensure discharges are justified and not seen as retaliatory. Clear and fair termination procedures help protect against costly retaliation claims.
  • Employers should keep accurate records of performance reviews and other relevant documentation. Consistent, documented feedback supports fair employment practices and provides a solid defense if termination decisions are questioned.

2. Family Dollar Stores of Virginia, Inc. Settles $45,000 Lawsuit for Involuntary Resignation and Harassment

In the Equal Employment Opportunity Commission v. Family Dollar Stores of Virginia, Inc., Chanele Brown’s resignation stemmed from severe sexual harassment by her store manager. While working as a customer service representative in Richmond, she faced unwanted advances and manipulative tactics regarding her work hours. The situation escalated when the manager suggested exchanging restored hours for personal favors, leading Brown to resign due to the intolerable work environment.

Family Dollar opted to settle the lawsuit for $45,000 to avoid the detailed public exposure of workplace misconduct during a trial. Part of the settlement included commitments to overhaul their anti-discrimination training and to reinforce the visibility and enforcement of their harassment policies across their stores, especially at the location where the harassment occurred.

Key lessons learned from the case:

  • This case reaffirms that sexual harassment violates Title VII of the Civil Rights Act of 1964. Employers must proactively prevent harassment and handle any reports with urgency and seriousness to comply with federal law.
  • Chanele Brown’s situation exemplifies constructive discharge, where working conditions become so intolerable due to harassment that an employee feels compelled to resign. This forms a legitimate basis for legal action, highlighting the need for a respectful and lawful workplace environment.

Learn more about Virginia Labor Laws in our in-depth guide.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.