Suing Small Employers for Sexual Harassment in Virginia: Your Rights Under the VHRA

Current as of: September 27, 2026 Sexual Harassment in the Workplace Virginia
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Federal law ignores companies with fewer than 15 employees. But under Va. Code Ann. § 2.2-3905, the Virginia Human Rights Act protects employees at businesses with five or more workers (and employers of one or more domestic workers), allowing you to hold small employers legally accountable for sexual harassment.

For decades, workers at small mom-and-pop shops, independent mechanics, tiny cafes, and boutique startups in places like Virginia Beach, Charlottesville, and Roanoke lived with a terrible legal reality. If they were sexually harassed, they had almost no legal recourse. The federal government completely ignores micro-businesses when it comes to workplace discrimination. However, the legal landscape in Virginia recently underwent a massive transformation. Thanks to sweeping updates to the Virginia Human Rights Act, small employers can no longer use their size as a shield to protect abusers. If you work for a small company with at least five employees and are facing sexual harassment, you now have significant legal power. Use our directory to find a local employment attorney who can help you enforce your state rights.

Federal Law vs. State Law for Micro-Businesses

Understanding the difference between federal and state law is the key to winning your case. If you hire a lawyer who only understands federal statutes, your lawsuit against a small business will be dismissed instantly.

The Federal Title VII Gap

Title VII of the Civil Rights Act is the most famous sexual harassment law in the country. However, this federal law only applies to employers who have 15 or more employees working for at least 20 weeks of the year. If you work for an independent accounting firm in Alexandria that only has 8 employees, Title VII legally does not apply to you. You cannot sue them in federal court for sexual harassment.

Expanded State Protections Under the VHRA

Recognizing this federal coverage gap, the Virginia General Assembly expanded the Virginia Human Rights Act (VHRA). Under Va. Code Ann. § 2.2-3905, it is an unlawful discriminatory practice for an employer to engage in sexual harassment or discriminate on the basis of sex. Importantly, the VHRA defines a covered employer to include any person employing five or more employees (for each working day in each of 20 or more calendar weeks in the current or preceding calendar year), as well as any employer of one or more domestic workers. This means small businesses with between 5 and 14 workers in Virginia are fully subject to harassment claims and financial liability under state law, even though they remain exempt from federal Title VII.

How to File a Claim Against a Small Employer

Because you cannot use the federal EEOC process for employers with fewer than 15 employees, your legal strategy must strictly follow Virginia state procedures.

Step 1: Reporting Internally (If Possible)

If you work for a company with 5 people, reporting the harassment to 'HR' is often impossible because HR usually consists of the owner-who might be the very person harassing you. If there is a manager or co-owner, you must report it in writing to create a paper trail. If the owner is the abuser, reporting it internally is functionally impossible, which the courts generally recognize.

Step 2: Filing with the State

Under Va. Code Ann. § 2.2-3907, you have two years from the day upon which the alleged discriminatory practice occurred to file a formal complaint with the state. Your attorney will help you file a written complaint under oath or an Employment Discrimination Intake Questionnaire directly with the Virginia Office of Civil Rights, Richmond. The state investigators will evaluate your claim specifically under the expanded VHRA rules.

Step 3: Getting Your Right to Sue

Once the state agency processes your claim, they will issue a formal Notice of Right to Sue under Va. Code Ann. § 2.2-3908. From that moment, you have exactly 90 days to file a civil lawsuit in a local state court, such as the Fairfax County Circuit Court, Fairfax or the Norfolk Circuit Court, Norfolk. Virginia juries are now legally empowered to award compensatory and punitive damages without the strict financial caps previously seen under older state laws.

Average Attorney Fees and Court Costs

Victims of sexual harassment rarely have to drain their savings to sue a small business. Costs typically include:

  • Attorney Contingency Fees: Lawyers generally charge 33% to 40% of the final settlement or verdict, meaning you pay no upfront hourly fees.
  • State Filing Fees: Filing a civil complaint in a Virginia Circuit Court usually costs between $150 and $300.
  • Attorney Fee Shifting: Under the VHRA rules, if you win your case, the judge can legally order the abusive small business to pay your entire attorney's bill, forcing the harasser to absorb the financial punishment.

Frequently Asked Questions (FAQ)

Does this state law apply to independent contractors?

Generally, sexual harassment laws apply strictly to W-2 employees. However, many small businesses illegally misclassify workers as 1099 contractors. An attorney can prove you were actually an employee and force the state to hear your harassment case.

Can the owner just declare bankruptcy and escape the lawsuit?

If a small business files for bankruptcy, it halts the lawsuit temporarily. However, depending on the severity and intentionality of the sexual harassment, judgments for 'willful and malicious injury' sometimes cannot be discharged in bankruptcy.

What if my boss says it was just a 'joke' and the company is too small to be formal?

The size of the business or an informal 'family-like' culture is absolutely zero excuse for sexual harassment. Virginia courts will judge the behavior based on how a reasonable person would view the hostility, not the owner's subjective humor.

Is it worth suing a small business if they don't have millions of dollars?

Yes. Many small businesses carry Employment Practices Liability Insurance (EPLI) or general business insurance policies that will step in and pay out massive settlements to victims to avoid going to a public trial.

Can a small employer fire me for filing a complaint with the state?

No. Firing you for exercising your legal rights is unlawful retaliation. If a small business owner fires you out of anger for filing a state complaint, they will face even higher financial penalties in court.


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