Virginia — Termination

Virginia follows the employment-at-will doctrine. Either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason. No advance notice is required for termination or resignation. The at-will rule is a common-law default; it applies unless the parties have entered into an employment contract or collective bargaining agreement that specifies different termination terms, or unless a statutory or common-law exception applies.

Source: Virginia Department of Labor and Industry — Virginia Labor Laws

Virginia requires employers to pay all final wages on or before the next regularly scheduled payday following termination, regardless of whether the employee was discharged or voluntarily resigned. The rule is codified in Va. Code § 40.1-29(A): "Upon termination of employment an employee shall be paid all wages or salaries due him for work performed prior thereto on or before the date on which the employee would have been paid had employment not been terminated."

Unlike some states that mandate immediate payment or accelerated deadlines based on the type of separation, Virginia applies a uniform rule. If an employer's regular pay schedule is biweekly and the next payday falls two weeks after the last day worked, that two-week interval is compliant. The statute does not authorize the employer to delay beyond the next regular payday; the final check is due on that payday at the latest.

Covered wages. The final paycheck must include all earned wages for work performed through the employee's last day: hourly wages, salary, accrued overtime, and commissions already due and payable under the terms of the commission agreement. Virginia's Department of Labor and Industry (DOLI) treats non-discretionary bonuses as "wages" collectible under § 40.1-29. The statute itself does not define "wages," but DOLI enforcement guidance clarifies that the term does not include fringe benefits such as accrued vacation, PTO, sick leave, or holiday pay; payout of those is governed solely by the employer's written policy or contract.

Remedies for late or withheld wages. An employer who fails to pay wages in accordance with subsection A faces statutory damages. Under Va. Code § 40.1-29(G), the employer is liable for all wages due, an additional equal amount as liquidated damages (doubling the unpaid amount), and prejudgment interest at 8% per annum accruing from the date the wages were due. Employees may bring an individual action, a joint action, or a collective action under procedures modeled on the Fair Labor Standards Act's opt-in framework (29 U.S.C. § 216(b)). Va. Code § 40.1-29(J) further provides that the court shall award reasonable attorney fees and costs to the prevailing employee, and if the court finds the employer "knowingly" failed to pay, the employee recovers treble damages (three times the unpaid wages) instead of the automatic liquidated damages. The statute defines "knowingly" to include actual knowledge, deliberate ignorance, or reckless disregard—proof of specific intent to defraud is not required. Va. Code § 40.1-29(K). The statute of limitations is three years from accrual. Va. Code § 40.1-29(L).

Civil and criminal penalties. The Commissioner of Labor and Industry may assess a civil penalty not to exceed $1,000 per violation when an employer knowingly fails to make timely payment under subsection A. Va. Code § 40.1-29(H). Willful and intentional failure to pay wages (absent a bona fide dispute) is a Class 1 misdemeanor if the unpaid amount is less than $10,000, and a Class 6 felony if the amount is $10,000 or more or the conviction is a second or subsequent offense. Va. Code § 40.1-29(E).

Source: Va. Code § 40.1-29