Virginia Minimum Wage Laws: How Much to Pay Employees

Virginia minimum wage laws

As of January 1, 2022, the minimum wage in Virginia is set at $11 per hour. This rate is based on federal guidelines.

The purpose of minimum wage laws is to prevent employers from giving employees low wages that do not fairly compensate them for the work they complete. In Virginia, employers must pay employees the state minimum wage of $11 per hour to ensure workers can afford basic necessities such as food, clothing and shelter.

Salaried employees

A salaried or exempt employee is paid a set salary as opposed to a minimum wage. Such employees are generally excluded from both minimum wage and overtime rules. In the U.S., the lowest amount a salaried employee can earn is $684 a week or $35,568 annually.

Virginia minimum wage progression

In April 2020, the General Assembly of Virginia passed legislation to gradually raise the minimum wage to $15 an hour by 2026. Contingent on passing Governor Ralph Northam’s amendments which push back the original enactment date, minimum wage should increase annually until 2026.

The jump from $7.25 an hour to $9.50 an hour took place on May 1, 2021, slightly over a decade after the state’s last wage increase in 2009. The next jump from $9.50 to $11 per hour occurred on January 1, 2022. Following January 1, 2022, Virginia minimum wage laws are expected to increase in the following manner:

January 1, 2023: $12 per hour
January 1, 2025: $13.50 per hour
January 1, 2026: $15 per hour

Exempt workers

The new Virginia minimum wage laws adjust which employees fall under its regulations and entitlements. This includes:

Individuals who work in domestic settings as nannies or au pairs
Individuals who work and earn wages according to the amount of work completed
Individuals whose earning capacity is limited by disability
Individuals employed by a business with fewer than four employees

There are some employees who aren’t covered by standard minimum wage laws. Examples include:

Farm laborers/workers
Golf course caddies
Nonprofit volunteer workers
Summer camp employees
Workers under 18 years of age who are employed by parents or legal guardians
Workers below 16 years of age, regardless of employer
Full-time students enrolled in work-study or equivalent programs
Those working on a commission basis
Students participating in a bona-fide educational program
Temporary foreign workers
Individuals who are exempt from federal minimum wage

The U.S. Department of Labor requires employers to display a minimum wage poster in their workplaces to inform workers of minimum wage laws and other entitlements. According to the Fair Labor Standards Act, “employers who willfully or repeatedly violate the minimum wage are subject to a civil penalty of up to $1,000.”

Virginia minimum wages for servers and other tipped employees

Minimum wage laws work differently for employees that make substantial earnings from tips. Both federal and state laws identify tipped employees as workers who regularly earn tips that total more than $30 per month. This category includes those who wait on tables, serve and mix drinks, clean hotel rooms and open doors.

Servers and other tipped employees are protected by Virginia’s minimum wage laws, which means they’re entitled to a wage of $11 per hour. However, the law permits employers to contribute part or even all of an employee’s tips to that minimum wage amount.

Virginia also allows employers to take a tip credit on the amount their employees earn from tips. In other words, employers can pay a tipped employee salary lower than minimum wage, provided the employee earns enough in tips to make up the difference. Through tip credits, employers can pay employees a minimum wage of $2.13 an hour. However, if the employee does not receive enough tips to bring their hourly wage to at least $11, the employer is required to settle the difference.

Tip pooling

State laws also allow employers to request that all tipped employees contribute to a tip pool, where employees contribute a portion of their tips to a shared fund. This amount is later collected and divided among the group of employees.

Before implementing tip pooling in the workplace, employers should be sure to give employees advance notice of tip pooling policies. They should also check that employees are only pooling money after retaining the minimum wage amount. As a general rule, tips from a tip pool should only be distributed to the tipped employees. Workers that earn a regular salary, such as managers and supervisors, are prohibited from taking these tips.

Virginia minimum wage overtime pay

In Virginia, employees are entitled to an overtime pay rate if they work more than 40 hours in a single week. Because the state does not have a specific daily overtime limit, employees are eligible for overtime pay in exchange for any excess work hours.

The Virginia overtime minimum wage is usually 1.5 times the employee’s standard hourly wage. This means that employers must pay employees at least $16.50 per hour in overtime wages under the current Virginia minimum wage laws. To calculate the total overtime pay due, multiply the overtime rate by the number of hours.

Preparing your business for minimum wage increases

With wage progressions over the next several years, you should prepare your business to manage new regulations. Consider the following strategies:

Audit business expenses: Analyze your cash flow and business finances to create an affordable and efficient hiring plan.
Ensure payroll accuracy: Invest in payroll software or professional services to ensure filing accuracies, maintain compliance and streamline accounting.
Reduce turnover : Implement strategic employee hiring, onboarding and development to create a skilled and loyal workforce.

Frequently asked questions about Virginia minimum wage

What states have a $15 an hour minimum wage?

As of November 2022, there are no states that pay a minimum wage of $15 per hour. However, several states, including California, Illinois and Massachusetts, plan to gradually raise minimum wages to $15 per hour. Washington currently has the highest minimum wage in the U.S. with $14.49 per hour.

Read more: Minimum Wage by State

What is the minimum wage for a 16-year-old in Virginia?

Currently, anyone under age 18 who is enrolled in an education program and works fewer than 20 hours a week is exempt from Virginia minimum wage laws. They are instead entitled to a minimum wage of $4.25 per hour for the first 90 days of employment.

What is a livable salary in Virginia?

To live comfortably in the city of Richmond, Virginia, a single adult with no children needs to make at least $15.95 per hour. The state’s cost of living is slightly higher than elsewhere in the nation, with Virginia housing prices representing the largest jumps over U.S. averages.

What is the federal minimum wage?

The federal minimum wage rate is set at $7.25 per hour. However, if an employee is subject to both federal and state wage laws, the employee is entitled to whichever represents the higher rate.

Virginia Minimum Wage Laws: How Much to Pay Employees

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