Overview of Virginia's Minimum Wage Requirements
As of February 13, 2024, the minimum wage in Virginia is $12.00 per hour. This figure is not seasonally adjusted and applies only when a certain number of workers are employed. The minimum wage in Virginia has seen a steady increase over the past few years. In 2020, it was $7.25, in 2021 it increased to $9.50, in 2022 it was $11.00, and in 2023 it remained at $12.00.
The trend of increasing minimum wage is set to continue with planned future increases. The state has announced that the minimum wage will rise to $13.50 per hour effective from January 1, 2025, and further increase to $15.00 per hour effective from January 1, 2026. Starting from October 1, 2026, Virginia will begin annual indexed increases in the minimum wage. This means that the minimum wage will be adjusted each year based on a certain index, typically the Consumer Price Index (CPI), to keep up with the cost of living.
Understanding Local Minimum Wage Variations
While the state-wide minimum wage is $12.00 per hour, certain counties have adopted their own wage policies. For instance, Fairfax County has adopted a Living Wage policy, setting the minimum hourly pay rate for merit employees at $15.90 for Fiscal Year 2023. However, all positions must be paid at or above the Virginia Minimum Wage. For tipped employees, the hourly wages plus tips must meet the Virginia minimum wage rate of $12.00 per hour. If not, the employer is required to pay the difference.
Other counties, including Prince William County, Loudoun County, Henrico County, Virginia Beach, Norfolk, Chesapeake, Arlington, and Richmond, also adhere to the state minimum wage of $12.00 per hour. However, for employees who regularly receive more than $30.00 a month in tips, the minimum wage is $2.13 per hour. If the total earnings do not meet the Virginia minimum wage rate of $12.00 per hour, the employer is obligated to pay the difference.
Minimum Wage Eligibility and Exemptions
In the state of Virginia, an individual is eligible for minimum wage if they are employed by an employer, including home care providers. However, there are several exemptions to this rule. These exemptions include farm laborers or farm employees, individuals engaged in the activities of an educational, charitable, religious, or nonprofit organization where the employer-employee relationship does not exist or the services are voluntary, and individuals under the age of 18 employed by their parent or legal guardian, among others.
Furthermore, employees who were previously exempt may now be covered under the Virginia Minimum Wage Act. This includes Domestic Service Employees who perform services related to the care of an individual in a private home or the maintenance of a private home or its premises. Home care providers and babysitters who work more than 10 hours per week are also covered. The Act does not exempt employees based on the size of their employer, meaning employees of “small” businesses must be paid at a rate of no less than $12.00 per hour.
Minimum Wage Considerations and Compliance Tips
As a food business employer in Virginia, it's critical to understand the key minimum wage legal and compliance considerations. As of January 1, 2024, the basic combined cash and tip minimum wage rate is $12.00. Employers can count a maximum of $9.87 per hour in tips towards meeting this minimum wage requirement. The minimum cash wage that employers are required to pay tipped employees is $2.13 per hour, which is the minimum amount that must be paid in cash wages before tips.
In terms of compliance, every employer with employees subject to the Act's minimum wage provisions must post a “Minimum Wage Notice” in a conspicuous place in all of their establishments. Employers are also required to display the “Equal Opportunity is the Law” poster, which provides general employment information, including provisions of the Americans with Disabilities Act. Lastly, the “Workers' Compensation Notice” must be posted by every employer subject to the Virginia Workers' Compensation Act.
FAQs
- What is the current minimum wage in Virginia? As of February 13, 2024, the minimum wage in Virginia is $12.00 per hour.
- Are there any exemptions to the minimum wage in Virginia? Yes, there are several exemptions including farm laborers or farm employees, individuals engaged in the activities of an educational, charitable, religious, or nonprofit organization where the employer-employee relationship does not exist or the services are voluntary, and individuals under the age of 18 employed by their parent or legal guardian, among others.
- What are the key legal considerations for employers regarding minimum wage in Virginia? Employers must pay a minimum wage of $12.00 per hour, post a “Minimum Wage Notice” in a conspicuous place in all of their establishments, display the “Equal Opportunity is the Law” poster, and post the “Workers' Compensation Notice”.
Information Source Links
- National Conference of State Legislatures
- U.S. Department of Labor
- Virginia Minimum Wage Act
- Virginia Department of Labor and Industry
- Virginia Law
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