Virginia minimum wage rises to $9.50

On May 1, Virginia parted company with the federal minimum wage rate for the first time and raised the state’s minimum wage from $7.25 to $9.50 per hour. The  increase is the product of legislation enacted last year to raise the Commonwealth’s minimum wage in stages to $15 by 2026.

Wage increases in stages

Under the law’s schedule, future increases will take effect as follows:

• January 1, 2022: $11;
• January 1, 2023: $12;
• January 1, 2025: $13.50; and
• January 1, 2026: $15.

The increases scheduled for 2025 and 2026 carry a caveat. For them to actually take effect, the General Assembly in 2024 will need to affirm, through reenacting legislation, the jumps to $13.50 and $15 per hour.

Exemptions from wage increases

Not all Virginia employees, however, will benefit from the increases. Exempted individuals include:

• Tipped employees, who are paid the federal Fair Labor Standards Act (FLSA) rate of $2.13 per hour, with employers using a maximum tip credit of $5.12 per hour. “Tipped employees,” however, must regularly receive more than $30 per month in tips.
• Full-time students, who are paid at least 85 percent of the current minimum wage ($6.16) for up to 20 hours of work per week when school is in session.
• Employees who are otherwise exempt from the federal minimum wage under the FLSA.

Compliance tips