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What Employers & Employees Need to Know

Virginia’s labor laws have been changing quickly in recent years, especially where minimum wage steps, classification, and local practices are concerned. Below is a clear, up-to-date guide for businesses, HR teams, and workers in the Commonwealth.

1. Minimum Wage Updates

• New Rate as of January 1, 2025: Virginia’s state minimum wage increased from $12.00 to $12.41 per hour.


• (beankinney.com)


• Future Scheduled Increases: Under current law, the wage is expected to rise to $13.50 on January 1, 2026, and eventually to $15.00 per hour by January 1, 2027.


• (wearecasa.org)


• 2026 Adjustment: Based on inflation (CPI), the 2026 rate will be $12.77/hr.


• (Virginia Association of Counties)


• Uniform Applicability: The $12.41 rate applies to most workers, including tipped workers; Virginia does not permit a lower minimum wage for tipped employees under state law.


• (Square)

2. Overtime, Exemptions & Classification

• Overtime Under Federal Law: Virginia does not set a state overtime standard; employers must follow the Fair Labor Standards Act (FLSA). Nonexempt employees are entitled to 1.5× their regular rate for hours worked over 40 in a workweek.


• Exempt vs Nonexempt: To classify an employee as exempt, employers must satisfy both the salary test and duties test under federal rules. Misclassification is a common source of wage claims.

3. Breaks, Meal Periods & Rest Time

• No State Mandate: Virginia law does not require private employers to provide meal or rest breaks.


• Federal Practice: If breaks (5–20 minutes) are offered, they are typically paid. Large unpaid meal periods (≥30 minutes) may be unpaid if the employee is fully relieved of work duties.


• Policy Clarity Recommended: Even if not required, clear written policies help avoid misunderstandings and disputes.

4. Final Pay, Deductions & Pay Statements

• Final Pay Timing: Virginia doesn’t mandate immediate payout of final wages upon termination; final wages should be paid by the employer’s next regular payday or as provided by agreement.


• Deductions: Only legally required deductions (taxes, court orders) or those authorized in writing by the employee may be made. Deductions cannot reduce pay below the minimum wage threshold.


• Pay Statements: While not strictly required by state law, providing transparent statements (hours worked, rate, deductions) is a best practice.


• Recordkeeping: Employers need to maintain accurate payroll, time, and deduction records as required by federal law and any applicable state rules.

5. Youth / Child Labor & Working Minors

• Age Restrictions & Permits: Virginia enforces age limits, restrictions on hours, and work permit rules for minors.


• Restrictions on Hours: Teen workers may face limits on late hours, total weekly hours during school terms, and prohibited occupations.


• Dual Compliance: Employers must comply with both state and federal child labor laws to avoid violations.

6. Proposed Changes & Pending Legislation

• Raise to $15 Plan: A bill (HB1928) passed the Virginia General Assembly in 2025 to incrementally raise the minimum wage to $15 by 2027 and tie future increases to inflation. The bill awaits the governor’s signature.


• (wearecasa.org)


• Local Minimum Wages: Currently, Virginia does not permit local governments to set private-employer minimum wages above the state rate.


• (workstream.us)

7. Virginia Labor Law Compliance Checklist

1. Set or adjust nonexempt wage to at least $12.41/hr as of Jan 1, 2025.


2. Monitor upcoming increases to $13.50 (2026) and $15.00 (2027).


3. Ensure exempt employees meet both salary and duties tests.


4. Document break and meal policies even if optional.


5. Define final pay procedures and pay employees by the next regular payday.


6. Avoid unauthorized deductions and provide transparent wage statements.


7. Follow all youth labor, permit, and hour restrictions.


8. Keep full payroll and time records in compliance with law.


9. Track HB1928 and other legislative changes for future adjustment.


10. Train HR and supervisors on compliance obligations and record audits.

Virginia’s labor law landscape in 2025 is moderate but evolving. With scheduled minimum wage increases and possible legislative changes, employers must stay attentive. Workers should know their rights around wages, overtime, and fair deductions.