Virginia — Wage & Hour

Virginia's minimum wage is $12.77 per hour as of January 1, 2026. This rate was established by the Commissioner of the Department of Labor and Industry under the Consumer Price Index (CPI) adjustment formula that was codified in the prior version of Va. Code § 40.1-28.10(F) and was in effect for the 2025 and 2026 annual adjustments. The $12.77 rate represented a percentage increase over the 2025 rate ($12.41) based on the CPI-U (Consumer Price Index for all items, all urban consumers).

CPI indexing formula suspended by April 2026 legislation for 2027 and 2028

On April 9, 2026, Governor Abigail Spanberger signed Senate Bill 1 (Senator L. Louise Lucas) and House Bill 1 (Delegate Jeion Ward), which amended Va. Code § 40.1-28.10 to override the automatic CPI indexing mechanism for calendar years 2027 and 2028. The legislation codified the existing $12.77 rate for calendar year 2026 (Va. Code § 40.1-28.10(B)), then established two fixed statutory rates for the following two years that replace the CPI formula:

• $13.75 per hour effective January 1, 2027 (Va. Code § 40.1-28.10(C))
• $15.00 per hour effective January 1, 2028 (Va. Code § 40.1-28.10(D))

These rates are set by statute and are not calculated using the CPI formula. Va. Code § 40.1-28.10 does not currently index the minimum wage to the Consumer Price Index for 2027 or 2028. The automatic indexing formula that would otherwise have applied under the CPI-adjustment mechanism in effect during 2025 and 2026 has been superseded by these fixed statutory amounts for the 2027 and 2028 calendar years.

CPI indexing resumes January 1, 2029

Beginning January 1, 2029, and annually thereafter, Virginia returns to automatic CPI-based adjustments under Va. Code § 40.1-28.10(E) and (F), as amended by the April 2026 legislation. Under the amended statute, the Commissioner must establish the adjusted state hourly minimum wage by October 1, 2028, and annually thereafter, with the new rate taking effect the following January 1. The adjusted rate is calculated as the sum of (i) the minimum wage in effect on the date the adjustment is made, and (ii) a percentage increase equal to the percentage by which the CPI-U increased during the most recent calendar year for which data are available. The annual adjustment amount cannot be less than zero. The $15.00 floor established on January 1, 2028, becomes the base for all future CPI adjustments starting in 2029.

Legislative purpose and context

The 2026 legislation temporarily interrupted the CPI indexing that had been in effect for the 2025 and 2026 rate adjustments (when Virginia's minimum wage rose from $12.00 to $12.41, then to $12.77, based on the CPI formula under the prior version of § 40.1-28.10(F)). By fixing the 2027 and 2028 rates at $13.75 and $15.00 respectively, the General Assembly ensured a defined path to $15.00 per hour regardless of actual inflation trends during 2025 and 2026. If CPI indexing had continued uninterrupted for those two years, the 2027 and 2028 rates would have been determined by the CPI-U percentage increase measured during 2025 and 2026, respectively, which could have resulted in rates above or below the $13.75 and $15.00 statutory amounts. Starting in 2029, the wage again floats with the CPI, linking future increases to measured inflation rather than requiring further legislative enactment.

Employer compliance obligations for 2027 and 2028

Employers must adjust payroll systems to the $13.75 rate no later than January 1, 2027, and to the $15.00 rate no later than January 1, 2028. These increases are mandatory and automatic; no further legislative or regulatory action is required. The Commissioner of the Department of Labor and Industry does not announce or "set" the 2027 or 2028 rates by October 1 of the preceding year, as those rates are codified directly in subsections C and D of § 40.1-28.10. The October 1 announcement requirement resumes for the January 1, 2029 rate and applies annually thereafter.

Source: Va. Code § 40.1-28.10; Governor's Office news release (April 9, 2026)

Virginia requires overtime pay at 1.5× the regular rate for hours worked over 40 in a workweek for employees of derivative carriers (air carriers subject to the federal Railway Labor Act). The regular rate is calculated as the hourly pay plus other non-overtime wages for the workweek, excluding amounts that would be excluded under the federal Fair Labor Standards Act, divided by total hours worked. For most other Virginia employers and employees, overtime is governed by the federal FLSA, which also uses the 40-hour weekly threshold.

Source: Va. Code § 40.1-29.3

Virginia's minimum wage will increase to $13.75 per hour on January 1, 2027, and to $15.00 per hour on January 1, 2028, under legislation signed by Governor Abigail Spanberger on April 9, 2026. Senate Bill 1 (Senator L. Louise Lucas) and House Bill 1 (Delegate Jeion Ward) establish these two fixed statutory increases before returning the Commonwealth to a Consumer Price Index–based annual adjustment mechanism.

The 2027 and 2028 schedule

The signed legislation codifies the existing $12.77-per-hour rate that took effect on January 1, 2026 (which was itself a CPI-indexed adjustment under the prior version of Va. Code § 40.1-28.10), then prescribes two fixed statutory amounts:

• $13.75 per hour effective January 1, 2027
• $15.00 per hour effective January 1, 2028

These rates are set by statute, not by CPI adjustment. They replace the automatic indexing formula that would otherwise have applied for those two years.

Return to CPI indexing beginning January 1, 2029

After the $15.00 rate takes effect on January 1, 2028, Virginia returns to annual CPI-based adjustments for rates effective January 1, 2029, and later years. The legislation amends Va. Code § 40.1-28.10 to require the Commissioner of the Department of Labor and Industry to establish the adjusted state hourly minimum wage by October 1, 2028, and annually thereafter, with the new rate taking effect the following January 1.

The adjusted rate is calculated as the sum of:

1. the minimum wage in effect on the date the adjustment is made, and
2. a percentage increase equal to the percentage by which the U.S. Average Consumer Price Index for all items, all urban consumers (CPI-U), published by the Bureau of Labor Statistics, increased during the most recent calendar year for which data are available.

This is the same CPI-U indexing formula that was in effect for the 2025 and 2026 rate adjustments before the 2026 legislation temporarily suspended automatic indexing for 2027 and 2028. The 2026 amendments renumber the subsections of § 40.1-28.10 (adding subsections B, C, and D for the fixed 2026, 2027, and 2028 rates, with the CPI formula now in subsections E and F) but do not change the substance of the indexing calculation. The formula continues to use the CPI-U percentage change from the most recent calendar year, applied to the minimum wage in effect at the time of adjustment. The only substantive change is the new base: the $15.00 rate established on January 1, 2028, becomes the starting point for all future CPI adjustments, replacing the $12.77 base that was used for the 2026 calculation.

The annual adjustment amount cannot be less than zero, meaning the wage cannot decrease even if the CPI declines.

In practice, the Commissioner will announce the January 1, 2029, rate by October 1, 2028, based on the CPI-U percentage change measured during calendar year 2027. Every subsequent year follows the same cycle.

Legislative context

The 2026 legislation interrupts the CPI indexing that began with the 2025 rate adjustment (when Virginia's minimum wage rose from $12.00 to $12.41 based on the CPI formula) and continued in 2026 ($12.77). By fixing the 2027 and 2028 rates at $13.75 and $15.00 respectively, the General Assembly ensured a defined path to $15.00 per hour regardless of inflation trends during 2025 and 2026. Starting in 2029, the wage again floats with the CPI, linking future increases to measured inflation rather than legislative enactment.

Source: Governor's Office news release (April 9, 2026); Va. Code § 40.1-28.10

Virginia requires employers to pay all wages or salaries due to a terminated employee on or before the date on which the employee would have been paid for such work had the employment not been terminated. This rule applies uniformly whether the separation was voluntary (resignation or quit) or involuntary (discharge or layoff). The statute places no distinction between the two modes of separation; both trigger the same deadline.

Operative language and timing rule

Va. Code § 40.1-29(A) provides: "Upon termination of employment an employee shall be paid all wages or salaries due him for work performed prior thereto; such payment shall be made on or before the date on which he would have been paid for such work had his employment not been terminated." In practice, this means the final paycheck is due on the next regular payday following the last day worked. Unlike states that mandate immediate payment upon discharge or within 72 hours for resignation, Virginia permits the employer to process final wages through the existing payroll cycle. If an employee paid biweekly on Fridays terminates on a Wednesday, the final check is due on the next Friday payday, not on the termination date itself.

Scope of "wages" included

The final payment must include all wages or salaries for work performed through the last day. This encompasses hourly pay, salary, piece-rate compensation, and any accrued overtime that has been earned under FLSA or Virginia's overtime statute (Va. Code § 40.1-29.3). Commissions already due and payable under the terms of the commission agreement at the time of termination must also be included.

The statute does not, however, define vacation pay, sick leave, PTO, holiday pay, or severance as "wages." The Virginia Department of Labor and Industry's official position, stated in the instructions to the Payment of Wage claim form, is that "[u]nder Virginia's payment of wage laws, 'wages' are specifically moneys earned for work performed. Sick leave, vacation leave, paid time off, and severance are considered 'fringe benefits' and the Department DOES NOT have enforcement over them." Vacation pay, PTO, sick leave, holiday pay, and severance are therefore not collectible under the wage-payment statute unless the employer's written policy or employment contract creates a contractual obligation to pay them out. If an employer's policy or contract is silent on whether accrued, unused vacation is paid at termination, Virginia law does not require payout; the employer may lawfully establish a policy that denies payment of accumulated vacation time upon separation. If the employer's written policy or contract does promise payout, however, that promise is enforceable as a contractual obligation, and the employee may pursue unpaid fringe benefits through a civil lawsuit (the Department of Labor and Industry will not enforce such claims).

Deductions and withholding

Va. Code § 40.1-29(C) restricts employer withholding from final wages to three categories: deductions for legally required taxes; deductions for amounts required by law (e.g., court-ordered garnishments or child-support withholding orders); and deductions authorized in writing by the employee. An employer may not unilaterally offset alleged debts—such as claimed equipment losses, training costs, or property damage—unless the employee gave prior written consent to that specific deduction. Ordinary business expenses, losses due to theft, or losses from employee negligence cannot be withheld absent such written authorization.

Enforcement and penalties

The Commissioner of Labor and Industry may, with the written consent of an employee, institute enforcement proceedings to collect unpaid wages and may assess attorney fees of one-third of the final order or judgment amount upon entry of a final order. Va. Code § 40.1-29(H) subjects any employer who knowingly fails to make payment of wages in accordance with subsection A to a civil penalty not to exceed $1,000 per violation. Additionally, under Va. Code § 40.1-29(E), an employer who willfully and with intent to defraud fails to pay wages owed commits a Class 1 misdemeanor if the unpaid amount is less than $10,000, or a Class 6 felony if the amount is $10,000 or more or if the conviction is a second or subsequent offense.

Source: Va. Code § 40.1-29; DOLI Payment of Wage Claim Form and Instructions, Form LLVA-POW-EN Rev. 11/2022

Virginia does not impose a state-law overtime requirement for domestic workers (household employees) beyond the federal Fair Labor Standards Act. Domestic workers in Virginia are entitled to overtime under the FLSA for hours worked over 40 in a workweek at 1.5× the regular rate, subject to the FLSA's live-in domestic service exemption under 29 U.S.C. § 213(b)(21), but Virginia law does not separately mandate overtime for this category of employees.

Coverage under Virginia's Domestic Worker Bill of Rights (2021)

Effective July 1, 2021, Virginia enacted the Domestic Worker Bill of Rights, which brought domestic workers under the Virginia Minimum Wage Act and extended anti-discrimination protections under the Virginia Human Rights Act. Va. Code § 40.1-28.9 defines "domestic service" as "services related to the care of an individual in a private home or the maintenance of a private home or its premises, on a permanent or temporary basis, including services performed by individuals such as companions, cooks, waiters, butlers, maids, valets, and chauffeurs." This legislation guaranteed domestic workers the right to the state minimum wage, regular pay periods under Va. Code § 40.1-29, and protection from workplace discrimination, but it did not create a separate state overtime mandate for domestic workers.

Virginia Overtime Wage Act and § 40.1-29.3

Virginia's overtime statute, Va. Code § 40.1-29.3, applies exclusively to employees of derivative carriers—air carriers subject to the federal Railway Labor Act, 45 U.S.C. § 181 et seq. The statute defines "Employee" in subsection A as "an individual employed by a derivative carrier," with no reference to domestic workers. This section was enacted as part of the July 1, 2022 amendments to the Virginia Overtime Wage Act (2022 Acts of Assembly, chapters 461 and 462) and has never applied to domestic workers. The 2022 amendments repealed the broader and more complex version of the Virginia Overtime Wage Act that had taken effect on July 1, 2021, and realigned Virginia overtime law with the federal FLSA for most employees while carving out derivative carrier employees as the sole category subject to a state-law overtime mandate.

Federal FLSA overtime applies

Because Virginia does not impose an independent overtime obligation for domestic workers, household employers in Virginia follow the FLSA's overtime rules: 1.5× the regular rate for all hours worked over 40 in a workweek, unless the employee qualifies for the live-in domestic service exemption under 29 U.S.C. § 213(b)(21). Live-in domestic workers—those who reside on the employer's premises—are exempt from FLSA overtime requirements, though they must be paid at least the applicable minimum wage for all hours worked. Non-live-in domestic workers (such as nannies, housekeepers, or companions working scheduled hourly shifts and returning home each day) are entitled to FLSA overtime.

Virginia's domestic-worker protections since July 1, 2021 focus on minimum wage, wage payment, and anti-discrimination coverage rather than on creating overtime rules that exceed the federal floor.

Source: Va. Code § 40.1-29.3; Va. Code § 40.1-28.9; Va. Code § 40.1-29

Virginia's minimum wage law contains no employer-size threshold. The Virginia Minimum Wage Act applies to all employers in the Commonwealth regardless of the number of employees, including sole proprietors with a single employee, the Commonwealth itself, and all state agencies, institutions, political subdivisions, and public bodies.

Broad employer definition with no numerical exemption

Va. Code § 40.1-28.9 defines "Employer" to include "any individual, partnership, association, corporation, or business trust or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee." The definition expressly includes the Commonwealth, any of its agencies, institutions, or political subdivisions, and any public body. The statute contains no minimum-employee-count carve-out. Va. Code § 40.1-28.10 reinforces this universal coverage by mandating that "every employer shall pay to each of its employees" the minimum wage; the word "every" is unqualified.

This stands in contrast to the federal Fair Labor Standards Act, which contains an enterprise coverage test requiring at least $500,000 in annual gross volume of sales or business, and to some other state wage laws that exempt small employers. Virginia imposes minimum wage obligations on a one-employee household staffing a domestic worker, a two-person LLC, and a Fortune 500 company alike, so long as the worker meets the statutory definition of "employee."

Historical context: elimination of prior four-employee threshold

Prior to the 2020 amendments that raised Virginia's minimum wage above the federal floor, the statute contained an explicit small-employer exclusion. Earlier versions of Va. Code § 40.1-28.9 excluded from the definition of "Employee" any person employed by an employer who did not have four or more persons employed at any one time, with family members not counted toward the threshold. That exemption was repealed as part of the 2020 legislation (2020 Acts of Assembly, chapters 1145, 1146, 1147, 1204, 1242). The repeal took effect May 1, 2021, simultaneously with the first state-law increase that brought Virginia's minimum wage above the federal $7.25 per hour. Since May 1, 2021, no employer-size threshold has applied.

Employee exclusions remain

While Virginia eliminated the employer-size threshold, the Act retains a long list of worker-category exclusions in the definition of "Employee" at Va. Code § 40.1-28.9. Excluded categories include:

• Any person employed as a farm laborer or farm employee;
• Any person engaged in the activities of an educational, charitable, religious, or nonprofit organization where the relationship of employer-employee does not in fact exist or where the services are on a voluntary basis;
• Newsboys, shoe-shine boys, caddies on golf courses, and ushers, doormen, concession attendants, and cashiers in theaters;
• Any person under the age of 16, regardless of by whom employed;
• Students participating in a bona fide educational program;
• Any person who is less than 18 years of age and currently enrolled full-time in any secondary school, institution of higher education, or trade school, provided the person is not employed more than 20 hours per week;
• Any person of any age currently enrolled full-time in any secondary school, institution of higher education, or trade school and in a work-study program or its equivalent;
• Any person who works as a babysitter for fewer than 10 hours per week;
• Any person participating as an au pair in the U.S. Department of State's Exchange Visitor Program governed by 22 C.F.R. § 62.31;
• Any individual employed as a temporary foreign worker as governed by 20 C.F.R. Part 655; and
• Any person who is exempt from the federal minimum wage pursuant to 29 U.S.C. § 213(a)(3) (which covers certain seasonal amusement or recreational establishments, organized camps, and religious or nonprofit educational conference centers).

These exclusions turn on the nature of the work or the worker's status, not on the size of the employer's workforce. An employer with one employee who falls into an excluded category owes no state minimum wage to that worker, but an employer with one non-excluded employee must pay the full Virginia minimum wage.

Practical implications for micro-employers

The absence of an employer-size exemption means that Virginia businesses operating below the FLSA's enterprise coverage threshold—such as a neighborhood coffee shop grossing $400,000 annually, or a home-care agency with three employees and receipts under $500,000—are subject to the state minimum wage even if they fall outside federal coverage. The same rule applies to household employers: a family employing a live-out nanny, housekeeper, or companion must pay at least the Virginia minimum wage, regardless of whether the family has any other employees and regardless of whether the worker is covered by the FLSA.

Source: Va. Code § 40.1-28.9; Va. Code § 40.1-28.10

Virginia's final paycheck timing requirement under Va. Code § 40.1-29(A) contains no employer-size threshold. The statute applies to all employers in the Commonwealth regardless of the number of employees, including sole proprietors with a single employee, household employers engaging domestic workers, and all public-sector employers.

Broad statutory coverage with no numerical exemption

Va. Code § 40.1-29(A) mandates that "All employers operating a business or engaging an individual to perform domestic service" must pay final wages on or before the next regular payday following termination. The word "All" is unqualified; the statute imposes no minimum-employee-count carve-out. The general definition of "Employer" in Va. Code § 40.1-2 reinforces this universal coverage, defining employer as "an individual, partnership, association, corporation, legal representative, receiver, trustee, or trustee in bankruptcy doing business in or operating within this Commonwealth who employs another to work for wages, salaries, or on commission and shall include any similar entity acting directly or indirectly in the interest of an employer in relation to an employee." This definition contains no reference to a minimum number of employees.

Consequently, a family employing a single live-out nanny, a two-person startup, and a Fortune 500 company are all subject to the same final-paycheck timing rule: payment must be made on or before the date the employee would have been paid had employment not terminated.

Contrast with federal law and other Virginia wage statutes

This universal coverage stands in contrast to the federal Fair Labor Standards Act, which contains an enterprise coverage test requiring at least $500,000 in annual gross volume of sales or business for many provisions. Virginia imposes no such revenue or headcount threshold for its wage-payment obligations under § 40.1-29.

The absence of an employer-size exemption in § 40.1-29 mirrors the structure of the Virginia Minimum Wage Act. As detailed in Va. Code § 40.1-28.9, the Minimum Wage Act eliminated its prior four-employee threshold in 2020 and now applies to all employers regardless of size. The wage-payment statute in § 40.1-29 has never contained such a threshold; its coverage has always been universal for employers operating in Virginia.

Employee exclusions vs. employer exemptions

While § 40.1-29 imposes no employer-size limit, the statute does exclude certain categories of workers from the definition of "employee" for purposes of other wage provisions. For example, the Virginia Minimum Wage Act in § 40.1-28.9 excludes farm laborers, certain students, newsboys, babysitters working fewer than 10 hours per week, and au pairs, among others. These exclusions turn on the nature of the work or the worker's status, not on the size of the employer's workforce. However, the final-paycheck timing requirement in § 40.1-29(A) applies to payment of "all wages or salaries" due to any employee, and the statute does not cross-reference the Minimum Wage Act's employee exclusions for purposes of final-pay timing. An employer with even one employee who does not fall within a statutory exclusion must comply with the final-paycheck timing rule.

Practical implications for micro-employers

The universal-coverage rule means that Virginia businesses and households operating below federal FLSA thresholds—such as a neighborhood coffee shop grossing $400,000 annually, a home-care agency with three employees, or a household employing a single housekeeper—must pay final wages on or before the next regular payday following termination. Failure to do so exposes the employer to the remedies in Va. Code § 40.1-29(J), including liquidated damages equal to the unpaid amount, treble damages for knowing violations, prejudgment interest at 8% per annum, and mandatory attorney fees and costs. The statute's enforcement mechanisms apply without regard to employer size.

Source: Va. Code § 40.1-29(A); Va. Code § 40.1-2

Virginia allows employers to take a tip credit against the state minimum wage obligation for tipped employees. Under this mechanism, an employer may pay a reduced cash wage provided that the employee's cash wage plus actual tips received equals or exceeds the full Virginia minimum wage of $12.77 per hour (effective January 1, 2026). If the combined amount falls short of the state minimum wage in any pay period, the employer must pay the employee the difference so that total compensation reaches at least $12.77 per hour for all hours worked.

Statutory framework and tip-credit mechanics

Va. Code § 40.1-28.9(B) provides: "In determining the wage of a tipped employee, the amount paid such employee by his employer shall be deemed to be increased on account of tips by an amount determined by the employer, except in the case of an employee who establishes by clear and convincing evidence that the actual amount of tips received by him was less than the amount determined by the employer." This language authorizes the employer to credit tips actually received toward its minimum wage obligation, subject to the employee's right to rebut the employer's determination by clear and convincing evidence.

The statute does not specify a minimum cash wage amount. However, the Virginia Department of Labor and Industry has announced that it "honors the 'tip credit' provisions established under the Fair Labor Standards Act and allows an employer to pay a tipped employee at least $2.13 per hour"—the federal tipped minimum wage under 29 U.S.C. § 203(m). The Department further specifies: "However, the combined wage rate plus the tips actually received by the employee must meet the Virginia minimum wage rate." In practice, this means an employer subject to the FLSA may pay a direct cash wage of $2.13 per hour and count up to $10.64 per hour in tips (as of January 1, 2026) toward meeting the Virginia minimum wage of $12.77 per hour. The maximum tip credit is the difference between the applicable state minimum wage and the $2.13 federal cash-wage floor.

Definition of tipped employee

Virginia defines a "tipped employee" as an employee who in the course of employment customarily and regularly receives tips totaling more than $30 each month from persons other than the employee's employer. Va. Code § 40.1-28.9(A). This definition mirrors the FLSA's threshold under 29 U.S.C. § 203(t). Employees who meet this threshold—servers, bartenders, bussers, bellhops, valets, and similar front-of-house hospitality workers—may be compensated under the tip-credit structure. An employer may not classify an individual as a tipped employee if the individual is prohibited by applicable federal or state law or regulation from soliciting tips. Va. Code § 40.1-28.9(B).

Make-up pay obligation when tips fall short

If a tipped employee's reported or actual tips in a pay period, when added to the cash wage, do not equal at least $12.77 per hour for every hour worked, the employer must pay additional "make-up" wages sufficient to bring the employee's total compensation to the state minimum wage. This guarantee applies on a pay-period or workweek basis, depending on the employer's tip-reporting practice. The employer bears the legal obligation to ensure that every tipped employee receives the full state minimum wage after tips are accounted for; if tips are insufficient, the employer must make up the shortfall.

Federal FLSA notice requirements for employers using the tip credit

Most Virginia employers are subject to the federal Fair Labor Standards Act. Under 29 U.S.C. § 203(m)(2)(A), an employer may take a tip credit only if it informs the tipped employee in advance of the employer's use of the tip credit. Specifically, the employer must inform the employee of: (1) the amount of the cash wage the employer will pay; (2) the additional amount claimed by the employer as a tip credit (which cannot exceed the difference between the cash wage and the applicable minimum wage); (3) that the tip credit cannot exceed the amount of tips actually received by the employee; (4) that all tips received by the employee are the employee's property, except to the extent the employee participates in a valid tip pool limited to employees who customarily and regularly receive tips; and (5) that the tip credit will not apply to an employee who has not been informed of these requirements. 29 C.F.R. § 531.59(b).

Failure to provide this notice forfeits the employer's right to take any tip credit under federal law, requiring the employer to pay the full minimum wage in cash and allowing the employee to retain all tips. The notice may be provided orally or in writing, but best practice is to provide written notice and obtain a signed acknowledgment from each tipped employee at the time of hire and whenever the cash wage, tip credit amount, or minimum wage changes. Under Va. Code § 40.1-28.9(B), the employee retains the right to prove by clear and convincing evidence that actual tips were lower than the employer's records indicate, in which case the employer's deemed tip credit is reduced to the lesser (actual) amount.

Recordkeeping requirements under federal and Virginia law

Employers that take a tip credit must maintain and preserve payroll records for each tipped employee in accordance with 29 C.F.R. § 516.28. These records must include all information required for non-tipped employees under the FLSA (employee's full name, address, occupation, time and day of week when employee's workweek begins, hours worked each day and total hours worked each workweek, total daily or weekly straight-time earnings, regular hourly pay rate, total overtime earnings, additions to or deductions from wages, total wages paid each pay period, and date of payment and pay period covered) plus the following tip-specific records:

• A symbol, letter, or other notation identifying each employee whose wage is determined in part by tips;
• The weekly or monthly amount reported by the employee to the employer of tips received (employees must report tips to their employer if tips total $20 or more in a calendar month, per Internal Revenue Code § 6053(a));
• The amount by which the wages of each tipped employee have been deemed to be increased by tips as determined by the employer (in other words, the tip credit amount claimed);
• The hours worked each workday in any occupation in which the employee does not receive tips, and total daily and weekly hours worked in all such occupations (this is required to document compliance with the "dual jobs" rule, which prohibits taking a tip credit for hours worked in a non-tipped occupation).

These records must be maintained for three years from the last date of entry, and must be available for inspection by the U.S. Department of Labor Wage and Hour Division and the Virginia Department of Labor and Industry. The employer may not simply assume or assign a flat tip amount per hour; the credit must reflect tips actually received, as reported by the employee or tracked through point-of-sale systems for credit-card and electronic tips.

Interaction with scheduled minimum wage increases

Virginia's minimum wage is scheduled to increase to $13.75 per hour on January 1, 2027, and to $15.00 per hour on January 1, 2028, before resuming annual Consumer Price Index adjustments starting January 1, 2029. As the state minimum wage rises, the maximum tip credit available under the DOLI-recognized framework will likewise increase (assuming the federal tipped minimum wage remains $2.13 per hour). For example, when the Virginia minimum wage reaches $15.00 per hour in 2028, an employer paying the $2.13 federal tipped minimum cash wage may claim a tip credit of up to $12.87 per hour, provided the employee's actual tips cover that amount and the employer satisfies all notice and recordkeeping requirements.

Source: Va. Code § 40.1-28.9; Virginia Department of Labor and Industry – Payment of Wage; 29 U.S.C. § 203(m); 29 C.F.R. § 531.59; 29 C.F.R. § 516.28

Virginia's minimum wage law excludes fifteen categories of workers from the definition of "employee" under Va. Code § 40.1-28.9 (effective through December 31, 2026). These exclusions turn on the nature of the work or the worker's status, not on the size of the employer's workforce. An individual who falls within any of these categories is not entitled to the Virginia minimum wage, though the individual may still be covered by the federal Fair Labor Standards Act (FLSA) if the employer or employee meets FLSA enterprise or individual coverage thresholds.

Farm laborer / farm employee exemption eliminated effective January 1, 2027

On April 8, 2026, Governor Abigail Spanberger signed into law HB 20 (Delegate Adele McClure) and SB 121 (Senator Jennifer Carroll Foy), which eliminate the exemption from Virginia's minimum wage requirements for persons employed as farm laborers or farm employees. The legislation has a delayed effective date of January 1, 2027. Starting on that date, farm laborers and farm employees employed in Virginia will be entitled to the full Virginia state minimum wage (scheduled to be $13.75 per hour on January 1, 2027, rising to $15.00 per hour on January 1, 2028).

Prior to January 1, 2027, farm laborers and farm employees remain categorically excluded from the Virginia Minimum Wage Act under Va. Code § 40.1-28.9(A)(1). This exclusion applies regardless of the size of the farm operation or the number of man-days of agricultural labor performed. Through December 31, 2026, farm workers in Virginia may be paid less than the Virginia minimum wage (currently $12.77 per hour as of January 1, 2026), though large commercial farms that exceed the federal FLSA's 500 man-day threshold under 29 U.S.C. § 213(a)(6) are required to pay the federal minimum wage of $7.25 per hour.

The elimination of the farm worker exemption was enacted after two prior legislative attempts (in 2024 and 2025) were vetoed by former Governor Glenn Youngkin. Advocates described the exemption as a vestige of Jim Crow-era rulemaking that denied minimum wage protections to a workforce composed largely of immigrants and workers of color.

H-2 temporary foreign workers remain excluded

Although HB 20 and SB 121 eliminate the farm laborer and farm employee exemption, they retain the exclusion for temporary foreign workers employed under the H-2A (temporary agricultural workers) and H-2B (temporary non-agricultural workers) visa programs. Va. Code § 40.1-28.9(A)(11) continues to exclude "any individual employed as a temporary foreign worker as governed by 20 C.F.R. Part 655." This means H-2 visa workers remain exempt from Virginia's state minimum wage even after January 1, 2027. The Legal Aid Justice Center, which advocated for the farm worker legislation, stated: "A worker's entitlement to basic wage protections should not depend on visa status," and called for future legislation to extend minimum wage protections to H-2 workers.

Statutory exclusions (current through December 31, 2026)

Va. Code § 40.1-28.9(A) provides that "Employee" does not include the following:

1. Any person employed as a farm laborer or farm employee. (Eliminated effective January 1, 2027 by HB 20 / SB 121, 2026 Acts of Assembly, chapters 357 and 358.)

1. Any person engaged in the activities of an educational, charitable, religious, or nonprofit organization where the relationship of employer-employee does not, in fact, exist or where the services rendered to such organization are on a voluntary basis. This exclusion covers bona fide volunteers and individuals whose engagement with a nonprofit does not constitute employment.

1. Newsboys, shoe-shine boys, caddies on golf courses, and ushers, doormen, concession attendants, and cashiers in theaters.

1. Any person under the age of 16, regardless of by whom employed. All workers under age 16 are categorically excluded from Virginia minimum wage coverage, even if they perform non-hazardous work permitted under child labor laws.

1. Any individual with disabilities employed by an employer that was authorized, prior to July 1, 2023, to employ individuals with disabilities at a subminimum wage pursuant to a special certificate issued under 29 U.S.C. § 214(c) of the Fair Labor Standards Act of 1938, as amended, provided that such individual was employed by and paid a subminimum wage by such employer pursuant to 29 U.S.C. § 214(c) prior to July 1, 2023. This grandfathered exemption, added by 2023 legislation (House Bill 1924, 2023 Acts of Assembly, c. 782), applies only to individuals with disabilities who were already employed under a pre-existing Section 14(c) certificate before July 1, 2023. Employers may not obtain new Section 14(c) certificates on or after July 1, 2023, and employ workers under this Virginia exemption. The exemption itself is scheduled to sunset on July 1, 2030.

1. Students participating in a bona fide educational program.

1. Any person who is less than 18 years of age and who is currently enrolled on a full-time basis in any secondary school, institution of higher education, or trade school, provided that the person is not employed more than 20 hours per week. This exemption applies only if the individual works 20 or fewer hours per week; an individual under 18 enrolled full-time who works more than 20 hours per week is covered by the Virginia Minimum Wage Act.

1. Any person of any age who is currently enrolled on a full-time basis in any secondary school, institution of higher education, or trade school and is in a work-study program or its equivalent at the institution at which he is enrolled as a student.

1. Any person who works as a babysitter for fewer than 10 hours per week. This exemption applies only to individuals whose babysitting work totals fewer than 10 hours per week. A babysitter who works 10 or more hours per week for a household employer is covered by the Virginia Minimum Wage Act.

1. Any person participating as an au pair in the U.S. Department of State's Exchange Visitor Program governed by 22 C.F.R. § 62.31. This exemption covers J-1 exchange visitors in the au pair category, who receive a stipend rather than wages and are governed by federal exchange-visitor regulations.

1. Any individual employed as a temporary foreign worker as governed by 20 C.F.R. Part 655. This exclusion applies to individuals admitted to the United States under H-2A (temporary agricultural workers) and H-2B (temporary non-agricultural workers) visa programs, whose wages are governed by federal Department of Labor certification requirements under 20 C.F.R. Part 655. (This exclusion remains in effect after January 1, 2027.)

1. Any person who is exempt from the federal minimum wage pursuant to 29 U.S.C. § 213(a)(3). This cross-reference incorporates the FLSA's exemptions for employees of certain seasonal amusement or recreational establishments, organized camps, and religious or nonprofit educational conference centers. An employee who qualifies for the federal exemption under § 213(a)(3) is also exempt from Virginia's state minimum wage.

Key differences from federal FLSA exemptions

Several Virginia minimum wage exemptions differ materially from the corresponding federal FLSA exemptions:

Farm laborers (subdivision 1) — Virginia exemption eliminated January 1, 2027. Through December 31, 2026, Virginia categorically excludes all farm laborers and farm employees from minimum wage coverage regardless of the farm's size or the volume of agricultural labor. By contrast, the FLSA under 29 U.S.C. § 213(a)(6) exempts agricultural employees from the federal minimum wage only if the employer did not use more than 500 "man-days" of agricultural labor in any calendar quarter of the preceding calendar year. A large Virginia farm operation that exceeds the 500 man-day threshold is required to pay the federal minimum wage under the FLSA but is not required to pay the Virginia minimum wage (through December 31, 2026). This means large commercial farms in Virginia must pay farm workers at least the federal minimum wage of $7.25 per hour but are not required to pay Virginia's higher state minimum wage (currently $12.77 per hour effective January 1, 2026). Starting January 1, 2027, all farm laborers and farm employees employed in Virginia are entitled to the Virginia state minimum wage of $13.75 per hour (rising to $15.00 per hour on January 1, 2028), eliminating this gap.

Minors under 16 (subdivision 4). Virginia categorically excludes all workers under age 16 from minimum wage coverage. The FLSA contains no such categorical age-based minimum wage exemption; minors under 16 are entitled to the federal minimum wage (subject to child labor restrictions on hours and hazardous occupations under 29 U.S.C. § 212) unless they fall within a specific occupational exemption such as newspaper delivery (29 U.S.C. § 213(d)) or casual babysitting (29 U.S.C. § 213(a)(15)). As a result, a 15-year-old working a permissible non-agricultural job in Virginia for an employer covered by the FLSA is entitled to the federal minimum wage of $7.25 per hour but has no entitlement to Virginia's higher state minimum wage.

Newsboys, caddies, and theater employees (subdivision 3). Virginia's exclusion for newsboys, shoe-shine boys, caddies on golf courses, and ushers, doormen, concession attendants, and cashiers in theaters has no direct parallel in the current FLSA. A caddie or theater usher employed by a golf course or theater covered by the FLSA is entitled to the federal minimum wage, but is excluded from Virginia minimum wage coverage.

Students and work-study participants (subdivisions 6, 7, 8). Virginia's student exemptions are broader in some respects than the federal student exemptions. The FLSA permits employers to pay full-time students employed in retail or service establishments, agriculture, or institutions of higher education a subminimum wage of 85% of the federal minimum wage under certificates issued pursuant to 29 U.S.C. § 214(b). Virginia categorically excludes from minimum wage coverage students in bona fide educational programs (subdivision 6), full-time students under 18 working 20 or fewer hours per week (subdivision 7), and work-study participants (subdivision 8), without requiring certification.

No employer-size threshold in Virginia. Unlike the FLSA, which contains an enterprise coverage test requiring at least $500,000 in annual gross volume of sales or business for many provisions, Virginia imposes minimum wage obligations on all employers regardless of size. A small Virginia employer with annual receipts below $500,000 and fewer than two employees engaged in interstate commerce falls outside FLSA enterprise coverage and therefore owes no federal minimum wage. However, that same employer must pay the Virginia state minimum wage to any employee who does not fall within one of the statutory exclusions in § 40.1-28.9(A).

Inclusions — domestic workers and home care providers covered

While the statute excludes the categories above, it explicitly includes two categories of workers who were historically excluded from wage protections in many states:

• Domestic service workers. Effective July 1, 2021, the Domestic Worker Bill of Rights (2021 Acts of Assembly, chapters 509 and 513) brought domestic workers—companions, cooks, butlers, maids, valets, chauffeurs, and similar household employees—under the Virginia Minimum Wage Act. Va. Code § 40.1-28.9(A) defines "domestic service" to mean services related to the care of an individual in a private home or the maintenance of a private home or its premises, on a permanent or temporary basis. Domestic workers are entitled to the full Virginia minimum wage unless they fall within one of the statutory exclusions (for example, a babysitter working fewer than 10 hours per week or an au pair in the Exchange Visitor Program).

• Home care providers. Va. Code § 40.1-28.9(A) provides that "Employee" includes a home care provider. The statute defines a home care provider as an individual who provides (i) home health services, including services provided by or under the direct supervision of any health care professional under a medical plan of care in a patient's residence on a visit or hourly basis, or (ii) personal care services, including assistance in personal care and activities of daily living provided in an individual's residence on a visit or hourly basis to individuals who have or are at risk of an illness, injury, or disabling condition.

Federal FLSA may still apply

An individual excluded from the Virginia Minimum Wage Act may still be entitled to the federal minimum wage under the FLSA if the employer is an enterprise engaged in interstate commerce with at least $500,000 in annual gross volume, or if the employee is individually engaged in interstate commerce or in the production of goods for interstate commerce.

Source: Va. Code § 40.1-28.9; 2026 Acts of Assembly, Chapter 357 (HB 20); 2026 Acts of Assembly, Chapter 358 (SB 121); Governor's Office news release (April 9, 2026); 29 U.S.C. § 213

Virginia does not require employers to provide meal breaks or rest breaks to employees age 16 and older. The Commonwealth imposes a break requirement only for minors under 16 years of age: those employees must receive at least a 30-minute meal break after every five hours of continuous work.

No general break requirement for adult employees

Virginia law contains no statute or regulation mandating meal periods or rest breaks for employees age 16 and older. Unlike states such as California, New York, or Massachusetts that impose detailed meal-break and rest-break schedules tied to shift length, Virginia leaves break policy to the discretion of individual employers. An employer may lawfully schedule an adult employee to work a 10-hour or 12-hour shift with no meal break and no rest period, provided the employee is paid for all hours worked and receives any overtime pay required under the Fair Labor Standards Act or Virginia's overtime statute (Va. Code § 40.1-29.3, which applies only to derivative carrier employees).

Employers that voluntarily provide breaks must comply with federal wage-and-hour rules on compensability. Under the FLSA, short breaks lasting 5 to 20 minutes are considered compensable working time and must be paid; meal periods of 30 minutes or longer need not be paid if the employee is completely relieved of all job duties during the break. An employee who must answer phones, monitor equipment, or remain on-call during a meal period is not relieved of duty, and the meal period must be counted as hours worked and paid accordingly. These federal compensability rules apply in Virginia whenever an employer chooses to offer breaks, even though Virginia law does not require the breaks themselves.

Mandatory 30-minute meal break for minors under 16

Virginia requires employers to provide minors under 16 years of age with at least a 30-minute meal break for every five hours of continuous work. This requirement applies to both nonagricultural and agricultural employment. The applicable regulation, 16 Va. Admin. Code § 15-40-30(B), provides: "No minor under 16 years of age shall be employed or permitted to work for more than five hours continuously without an interval of at least 30 minutes for a lunch period, and no period of less than 30 minutes shall be deemed to interrupt a continuous period of work."

A break of less than 30 minutes does not satisfy the requirement and does not restart the five-hour clock. If an employer gives a 14-year-old employee a 20-minute break after three hours of work, the employee has still worked three hours continuously for purposes of the rule, and the five-hour threshold is measured from the employee's original start time. The required 30-minute interval must be a complete interruption of work duties; the regulation does not permit the employer to provide six 5-minute breaks scattered across a shift in lieu of one uninterrupted 30-minute period.

The minor break requirement is codified in the Virginia Hours of Work for Minors regulations (16 Va. Admin. Code Chapter 15-40), which implement the child labor provisions in Va. Code Title 40.1, Chapter 5. Employers must also comply with the record-keeping requirement in Va. Code § 40.1-81.1, which mandates that every employer employing minors under 16 keep time records showing the beginning and ending time of work each day together with "the amount of time designated as a free-from-duty meal period, which is deductible from the schedule of hours of work." These records must be kept on the premises for 36 months.

Exceptions for minors

The minor break requirement in 16 Va. Admin. Code § 15-40-30(B) is subject to the general exceptions in § 15-40-50. Minors employed in certain situations are exempt from the hours-of-work limitations in Chapter 15-40, including the meal-break requirement. Exempt categories include:

• A minor under 16 employed by a parent or person standing in place of a parent in a business owned by that parent or person (except manufacturing);
• Pages or clerks for the Virginia House of Delegates or Senate;
• Domestic duties in and around the minor's own home performed directly for the minor's parent;
• Work performed for the Commonwealth, its agencies, institutions, political subdivisions, or any public body;
• Theatrical performers (with a permit from the Department of Labor and Industry); and
• Activities performed for a volunteer rescue squad.

A minor employed in one of these exempt categories is not entitled to the mandatory 30-minute meal break, though the employer may voluntarily provide breaks.

Employees age 16 and 17

Virginia's child labor statute imposes no hours-of-work restrictions—and therefore no meal-break requirement—for employees age 16 and 17. These employees are subject to the same break rules (or absence of rules) as adult employees: the employer has no obligation to provide a meal break or rest period, though if the employer voluntarily provides breaks, federal FLSA compensability rules apply.

No paid-break requirement

Virginia law does not require that the 30-minute meal break for minors under 16 be paid. If the minor is completely relieved of all work duties during the break, the employer may treat the break as unpaid time. The regulation refers to a "free-from-duty meal period" that is "deductible from the schedule of hours of work" (Va. Code § 40.1-81.1), confirming that the break may be unpaid. However, if the minor is required to perform any job duties during the 30-minute interval—monitoring a register, answering phones, waiting for customers—the break is not a bona fide meal period and must be paid as working time under the FLSA.

Contrast with federal law

Federal law likewise imposes no meal-break or rest-break requirement for employees of any age. The FLSA mandates payment for hours worked and overtime for hours over 40 per week (subject to exemptions), but does not require employers to provide breaks. The only federal break mandate that applies in Virginia is the PUMP for Nursing Mothers Act (an amendment to the FLSA), which requires employers to provide reasonable break time and a private, non-bathroom space for lactating employees to express breast milk for one year after childbirth. Virginia has a parallel lactation accommodation requirement under the Virginia Pregnant Workers Fairness Act (Va. Code § 2.2-3900 et seq.), which applies to employers with five or more employees.

Source: 16 Va. Admin. Code § 15-40-30(B); Va. Code § 40.1-81.1; 16 Va. Admin. Code § 15-40-50

Virginia requires all employers operating a business or engaging an individual to perform domestic service to establish regular pay periods and rates of pay for employees, with the exception of executive personnel. Once a pay period is established, the employer must pay salaried employees at least once each month and employees paid on an hourly rate at least once every two weeks or twice in each month. These are minimum payment frequencies; employers may pay more frequently (weekly, for example) but may not pay less frequently than the statutory floor.

Statutory framework and baseline pay frequencies

Va. Code § 40.1-29(A)(1) establishes two baseline payment frequencies that turn on how the employee is classified for pay purposes:

• Salaried employees must be paid at least once each month. An employer may pay monthly salaried employees on any regular schedule (e.g., the last business day of each month, or the 15th of each month), but payments must occur no less frequently than monthly.

• Hourly employees must be paid at least once every two weeks or twice in each month. This requirement permits two structures: a biweekly pay schedule (every 14 days, resulting in 26 pay periods per year) or a semimonthly schedule (twice per month, such as the 1st and 15th, resulting in 24 pay periods per year). Employers may not pay hourly employees monthly unless the employee falls within one of the two statutory exceptions described below.

The statute uses the phrase "at least," confirming that these are minimum frequencies. An employer that pays hourly employees weekly, or salaried employees biweekly, complies with the law; the statute sets a floor, not a ceiling.

No industry-specific variations

The pay frequency requirements apply uniformly across all industries and all employers. There are no separate rules for construction, retail, healthcare, agriculture, or any other industry. The statute's opening phrase—"All employers operating a business or engaging an individual to perform domestic service"—is unqualified. An agricultural employer, a construction general contractor, a retail store, a hospital, and a household engaging a domestic worker are all subject to the same pay frequency minimums: monthly for salaried employees, biweekly or semimonthly for hourly employees.

Note: Va. Code § 40.1-29(C) provides that an employer engaged in agricultural employment (including agribusiness and forestry) must furnish a written paystub only "upon request of its employee," rather than automatically on each pay date as required for other employers. This is an exception to the paystub delivery requirement, not an exception to the pay frequency requirement. Agricultural employers must still pay salaried employees at least monthly and hourly employees at least biweekly or semimonthly, just like all other employers.

Exception 1: Work-study students

A student who is currently enrolled in a work-study program or its equivalent administered by any secondary school, institution of higher education, or trade school may be paid once each month if the institution or employer so chooses. This exception applies only to students in a bona fide educational work-study arrangement and does not extend to all student employees. A high school or college student working a regular part-time job outside of a work-study program remains subject to the baseline pay-frequency rules (monthly for salaried, biweekly or semimonthly for hourly).

Exception 2: High-wage employees (150% of state average weekly wage)

Employees whose weekly wages total more than 150 percent of the average weekly wage of the Commonwealth as defined in Va. Code § 65.2-500 may be paid once each month, upon agreement by each affected employee, if the employer so chooses. This high-wage exception requires both a threshold calculation and individual employee consent.

The average weekly wage of the Commonwealth is calculated annually by the Virginia Workers' Compensation Commission under Va. Code § 65.2-500(B). On or before January 1 of each year, the Commission determines the average weekly wage by dividing total wages (excluding federal government employee wages) reported to the Virginia Employment Commission for the 12-month period ending the preceding June 30 by the average monthly number of insured workers during that period, then dividing the resulting average annual wage by 52 and rounding to the nearest dollar. For calendar year 2026, the Virginia Department of Labor and Industry announced that the average weekly wage of the Commonwealth is $1,507.01 per week. Therefore, the high-wage threshold for 2026 is $2,260.52 per week (150% of $1,507.01), or approximately $117,546.96 annually for a full-time employee working 52 weeks.

An employee whose weekly wages exceed this threshold may, upon individual written or oral agreement with the employer, be paid once per month. The statute requires "agreement by each affected employee." This phrasing indicates that the employer may not unilaterally impose monthly pay on a high-wage employee; the employee must consent. The statute does not specify that consent must be in writing, but best practice is to document the agreement in an offer letter, employment contract, or separate acknowledgment to avoid later dispute.

If a high-wage employee does not agree to monthly pay, the baseline frequency rules apply: salaried employees must be paid at least monthly (which is already the default), and hourly employees (even those earning above the 150% threshold) must be paid at least biweekly or semimonthly. In practice, this exception is most relevant to hourly-paid high earners—consultants, specialized technical workers, or certain healthcare professionals paid an hourly rate that exceeds the threshold—who would otherwise be entitled to biweekly or semimonthly payment.

The 150% threshold is recalculated each January 1 based on the prior year's wage data. Employers relying on this exception for monthly pay should verify each year that the employee's weekly wages still exceed the updated threshold. An employee whose wages fall below the new threshold mid-year must be moved to a compliant biweekly or semimonthly schedule (if paid hourly) or may remain on a monthly schedule (if salaried).

No requirement to establish uniform pay periods across all employees

The statute requires that employers "establish regular pay periods," but it does not mandate a single uniform pay period for the entire workforce. An employer may lawfully pay hourly non-exempt employees biweekly, salaried exempt employees monthly, and high-wage employees who have consented on a monthly basis, so long as each group's pay frequency meets the applicable minimum.

Interaction with final paycheck timing rule

The pay-frequency requirement in Va. Code § 40.1-29(A)(1) governs ongoing employment. Final wages upon termination are governed by a separate rule in Va. Code § 40.1-29(A) (final sentence), which requires payment on or before the date the employee would have been paid for such work had employment not been terminated—in other words, the next regular payday following separation. The two rules work together: the regular pay-period structure determines when the final paycheck is due.

Penalties for non-compliance

An employer who knowingly fails to make payment of wages in accordance with Va. Code § 40.1-29(A)—including the pay-frequency requirements—is subject to a civil penalty not to exceed $1,000 per violation under subsection H. An employer who willfully and with intent to defraud fails or refuses to pay wages in accordance with this section (unless the failure is due to a bona fide dispute) commits a Class 1 misdemeanor if the unpaid wages total less than $10,000, or a Class 6 felony if the unpaid amount is $10,000 or more or if the conviction is a second or subsequent offense, under subsection E.

Under subsection J, an employee whose wages are not paid in accordance with the statute may bring a civil action to recover the unpaid wages, and the court must award the wages owed, an additional equal amount as liquidated damages, prejudgment interest at 8% per annum from the date wages were due, and mandatory attorney fees and costs. If the court finds the employer knowingly failed to pay wages, the employee is entitled to triple damages instead of liquidated damages. These remedies apply to violations of the pay-timing and pay-frequency requirements, not just to wage-amount disputes.

Source: Va. Code § 40.1-29(A); Va. Code § 65.2-500(B); DOLI Notice of the Average Weekly Wage for 2026 (Jan. 6, 2026)

Under Va. Code § 40.1-29(A), Virginia requires all employers to establish regular pay periods and rates of pay for employees except executive personnel. For non-executive employees, the statute imposes minimum payment frequencies that depend on how the employee is compensated:

Salaried employees must be paid at least once each month. Employers may pay more frequently (biweekly, semimonthly, or weekly), but monthly is the statutory floor for salaried non-executive workers.

Hourly employees must be paid at least once every two weeks or twice in each month. This permits either a biweekly pay schedule (every 14 days, yielding 26 pay periods per year) or a semimonthly schedule (such as the 1st and 15th of each month, yielding 24 pay periods annually). Employers may pay hourly employees weekly or more frequently, but may not pay hourly non-executive workers monthly unless one of two narrow exceptions applies (described below).

Virginia does not require weekly pay for any category of non-executive employees. The most frequent mandated schedule is biweekly or semimonthly for hourly workers; salaried workers may lawfully be paid as infrequently as monthly.

Executive personnel exemption

The pay frequency requirements apply only to "employees except executive personnel." Va. Code § 40.1-29(A). Executive personnel are categorically exempt from the statute's minimum payment frequency rules. The statute does not define "executive personnel," and as of June 2, 2026, the Virginia Department of Labor and Industry has published no regulation or administrative guidance defining the term. Practitioners typically interpret the exemption by reference to functional criteria for executive employees—individuals who direct the management of the enterprise or a customarily recognized department or subdivision, who customarily and regularly supervise at least two full-time employees, and who have the authority to hire or fire other employees or whose recommendations as to hiring, firing, advancement, or promotion are given particular weight—but these criteria are not codified in Virginia law.

An employer who classifies an employee as executive personnel for purposes of the pay frequency exemption may pay that employee on any schedule, including quarterly or annually, because the executive is excluded from the minimum-frequency requirements. However, the employer must still "establish regular pay periods" for the executive under the opening clause of subsection A; the exemption permits irregular or infrequent pay intervals, but those intervals should be established and communicated in advance.

Two exceptions permitting monthly pay for non-executive employees

Even for non-executive employees, the statute permits monthly payment in two narrow circumstances:

1. Work-study students. A student currently enrolled in a work-study program or its equivalent administered by any secondary school, institution of higher education, or trade school may be paid once each month if the institution or employer chooses. This exception applies only to students in a bona fide educational work-study arrangement, not to all student employees.

1. High-wage employees (above 150% of state average weekly wage) who consent. Employees whose weekly wages total more than 150 percent of the average weekly wage of the Commonwealth as defined in Va. Code § 65.2-500 may be paid once each month, upon agreement by each affected employee, if the employer chooses. The statute requires individual employee consent; an employer may not unilaterally impose monthly pay on a high-wage employee even if the employee's earnings exceed the threshold.

For calendar year 2026, the Virginia Department of Labor and Industry announced that the average weekly wage of the Commonwealth is $1,507.01 per week. Applying the statutory formula, the high-wage threshold for the monthly-pay exception is $2,260.52 per week (150% of $1,507.01), or approximately $117,547 annually for a full-year employee. This threshold is recalculated annually based on workforce data reported to the Virginia Employment Commission for the 12-month period ending the preceding June 30, as specified in Va. Code § 65.2-500(B). Employers relying on this exception for monthly pay should verify each January that the employee's weekly wages still exceed the updated threshold.

If neither exception applies, a non-executive hourly employee must be paid at least biweekly or semimonthly, and a non-executive salaried employee must be paid at least monthly.

No weekly pay mandate

Virginia imposes no requirement that any category of employee be paid weekly. An employer that chooses a weekly pay schedule complies with the statute (weekly is more frequent than the statutory minimums), but weekly payment is not required. This contrasts with a small number of states that mandate weekly or biweekly pay for certain industries (such as manual laborers in manufacturing or construction); Virginia sets uniform minimums across all industries based solely on salaried-versus-hourly classification.

Interaction with final paycheck timing

The pay frequency requirements in Va. Code § 40.1-29(A) govern ongoing employment. The same subsection provides separately that upon termination, "an employee shall be paid all wages or salaries due him for work performed prior thereto; such payment shall be made on or before the date on which he would have been paid for such work had his employment not been terminated." The final paycheck is therefore due on the next regular payday following termination, applying the pay frequency established for that employee during active employment.

Source: Va. Code § 40.1-29(A); Va. Code § 65.2-500(B); DOLI Notice of the Average Weekly Wage for 2026 (Jan. 6, 2026)

Virginia permits employers to take a tip credit against the state minimum wage obligation for tipped employees under Va. Code § 40.1-28.9(B). The statute provides that in determining the wage of a tipped employee, "the amount paid such employee by his employer shall be deemed to be increased on account of tips by an amount determined by the employer," subject to the employee's right to rebut by clear and convincing evidence that actual tips received were lower.

Minimum cash wage: $2.13 per hour

The Virginia Department of Labor and Industry honors the federal Fair Labor Standards Act tip credit provisions and allows an employer to pay a tipped employee a minimum cash wage of $2.13 per hour, the same as the federal tipped minimum wage under 29 U.S.C. § 203(m). This $2.13 cash wage is the lowest hourly amount an employer may pay in direct wages to a tipped employee who qualifies for the tip credit.

The DOLI's official 2026 Minimum Wage Notice states: "Under the 'tip credit' provisions of the Fair Labor Standards Act, tipped employees (those who regularly receive more than $30.00 a month in tips) may be paid at the tipped minimum wage of $2.13 per hour."

Maximum tip credit: difference between Virginia minimum wage and $2.13

The maximum tip credit an employer may claim is the difference between the applicable Virginia minimum wage and the $2.13 cash wage. For 2026, with Virginia's minimum wage at $12.77 per hour (effective January 1, 2026), the maximum tip credit is $10.64 per hour ($12.77 minus $2.13). When Virginia's minimum wage increases to $13.75 per hour on January 1, 2027, the maximum tip credit will rise to $11.62 per hour. When the rate reaches $15.00 per hour on January 1, 2028, the maximum tip credit will be $12.87 per hour.

The employer may claim the tip credit only for tips the employee actually receives. If the employee's reported tips in a workweek or pay period, when added to the $2.13 cash wage, total less than the Virginia minimum wage for all hours worked, the employer must pay additional cash wages to make up the shortfall. The tip credit is not a flat entitlement; it is limited by the amount of tips the employee actually earns.

Who qualifies as a tipped employee

A "tipped employee" under Va. Code § 40.1-28.9(A) is "an employee who in the course of employment customarily and regularly receives tips totaling more than $30 each month from persons other than the employee's employer." This threshold matches the federal FLSA definition under 29 U.S.C. § 203(t). An employer may not classify an individual as a tipped employee if the individual is prohibited by applicable federal or state law or regulation from soliciting tips.

Federal notice requirement to take the tip credit

Under 29 U.S.C. § 203(m)(2)(A), an employer may take a tip credit only if it informs the tipped employee in advance, before the employer uses the tip credit, of the following:

1. The amount of the cash wage the employer will pay (at least $2.13 per hour);
2. The additional amount claimed by the employer as a tip credit (which cannot exceed the difference between the cash wage and the applicable minimum wage);
3. That the tip credit cannot exceed the amount of tips actually received by the employee;
4. That all tips received by the employee are the employee's property, except to the extent the employee participates in a valid tip pool limited to employees who customarily and regularly receive tips; and
5. That the tip credit will not apply to an employee who has not been informed of these requirements.

Failure to provide this notice forfeits the employer's right to take the tip credit under federal law, requiring the employer to pay the full Virginia minimum wage in cash and allowing the employee to retain all tips. The notice may be oral or written, but best practice is written notice with a signed acknowledgment.

Make-up pay obligation

If a tipped employee's cash wage plus actual tips do not equal at least the Virginia minimum wage ($12.77 per hour as of January 1, 2026) for every hour worked in the pay period, the employer must pay the employee additional cash wages to bring total compensation to the minimum wage. This guarantee applies on a workweek or pay-period basis. The employer bears the legal obligation to ensure every tipped employee receives the full state minimum wage after tips are accounted for.

Source: Va. Code § 40.1-28.9; Virginia Department of Labor and Industry – Payment of Wage; DOLI 2026 Virginia Minimum Wage Poster; 29 U.S.C. § 203(m)

Virginia permits employers to pay a reduced training wage to employees enrolled in an established on-the-job training or other training program that meets standards set by the Commissioner of Labor and Industry. Under Va. Code § 40.1-28.10(A)(2), beginning May 1, 2021, an employer may pay a training wage of not less than the federal minimum wage ($7.25 per hour) or 75 percent of the Virginia minimum wage, whichever is greater. The training wage may be paid only for the first 90 calendar days after the employee's start of employment and only if the employer's training program complies with detailed requirements codified in 16 Va. Admin. Code § 15-60-20.

Calculating the training wage rate

Because the statute requires the employer to pay the greater of (i) the federal minimum wage or (ii) 75% of the Virginia minimum wage, the training wage has a federal-law floor. As Virginia's minimum wage rises, the training wage rises proportionally, but it can never fall below the federal minimum wage of $7.25 per hour (assuming the federal minimum wage remains unchanged).

For calendar year 2026, with Virginia's minimum wage at $12.77 per hour, the training wage is $9.58 per hour (75% of $12.77, rounded to the nearest cent). This exceeds the federal minimum wage of $7.25 per hour, so the higher amount applies.

When Virginia's minimum wage increases to $13.75 per hour on January 1, 2027, the training wage will rise to $10.31 per hour (75% of $13.75). When the minimum wage reaches $15.00 per hour on January 1, 2028, the training wage will be $11.25 per hour (75% of $15.00).

The federal minimum wage floor becomes operative only if Virginia's minimum wage were to drop below $9.67 per hour (since 75% of $9.67 is approximately $7.25). Under current law, Virginia's minimum wage cannot decrease; annual CPI adjustments under Va. Code § 40.1-28.10(F) are capped at zero, meaning the wage can remain flat in a deflationary year but cannot decline. Consequently, the practical training wage for Virginia employers is 75% of the applicable state minimum wage.

90-day maximum duration

The training wage may be paid for a maximum of 90 calendar days after the employee's start of employment. Va. Code § 40.1-28.10(A)(2); 16 Va. Admin. Code § 15-60-20(B). After 90 days, the employee must be paid at least the full Virginia minimum wage. The 90-day period is measured in calendar days, not business days or days actually worked. If an employee is hired on January 15, the training wage period expires 90 days later on April 15, regardless of whether the employee worked every scheduled shift during that interval.

The regulation permits an employee to participate in only one training program per employer. An employer may not reset the 90-day clock by transferring the employee to a different position or department, or by changing the employee's classification or duties. However, an employee may participate in a second training program with a subsequent (different) employer, provided the employee has no previous similar or related experience in the new occupation.

Regulatory standards for training programs under 16 VAC 15-60-20

To qualify for the training wage, the employer's program must meet the following conditions set forth in 16 Va. Admin. Code § 15-60-20(B):

1. No previous similar or related experience. The employee must have been hired in, and be receiving training for, an occupation in which the employee has no previous similar or related experience. The regulation defines "similar or related experience" as knowledge or skill in a particular job or activity gained because the person has done that job or activity, or a comparable job or activity, for a meaningful period of time. An employer may not use the training wage for an employee who is already trained or substantially trained to perform the job.

2. No worker displacement. The employer must not utilize the training-wage employee in a manner that causes, induces, encourages, or assists any displacement or partial displacement of any currently employed worker. Prohibited displacement practices include:

• Displacing any previous recipient of the training wage;
• Reducing the hours of a currently employed worker;
• Replacing a current or laid-off employee with a trainee;
• Filling a position when another employee is on temporary layoff with the clear expectation of returning to work;
• Replacing, supplanting, competing with, or duplicating any approved apprenticeship program.

3. Sufficient technical skill required. The occupation for which the employee is receiving training must require a sufficient degree of technical skill to necessitate a learning period. The regulation defines "sufficient degree of technical skill" as the ability to use the processes, practices, techniques, or tools of a particular area of expertise enough to meet the purpose and requirements of the job. The training must not be for the sole purpose of acquiring manual dexterity and high production speed in repetitive operations. For example, the Virginia Department of Labor and Industry has stated that a bakery employing a baking trainee who is learning to use a multitude of equipment and develop the technical skills to produce various goods may pay the training wage, but an employer training a worker only to perform a single repetitive assembly task may not.

4. Formal instruction or on-the-job training with limited responsibility. The training program must involve either formal instruction or on-the-job training during a period when the learners are entrusted with limited responsibility and are under supervision or guidance. "Limited responsibility" means job duties that are substantially less than the expectations for a worker who has achieved a sufficient degree of technical skill and has completed a job training program.

5. Written description of instruction and supervision. The training program must describe in writing the nature and extent of the instruction and supervision provided. The employer must maintain this written documentation and make it available to the Department of Labor and Industry upon request.

6. Good-faith effort to continue employment. The employer must make a good-faith effort to continue to employ the employee after the period of the training wage expires.

7. Reasonable expectation of regular employment at full minimum wage. The employer may not hire the employee at the training wage unless there is a reasonable expectation that there will be regular employment, paying at or above the effective Virginia minimum wage, for the trainee upon the successful completion of the training period. The regulation defines "reasonable expectation" as a fair and sensible belief that something will happen. This requirement prohibits employers from using the training wage for seasonal or temporary employees. The training wage may not be applied to a "seasonal employee" (an employee in an occupation that can be carried out only at certain seasons or fairly definite periods of the year and that does not include occupations that may be carried on through an entire year) or a "temporary employee" (an employee supplied to a host employer and paid by a staffing agency on a short-term basis).

8. One training program per employer. An employee can undergo only one on-the-job training program or other training program established in accordance with Va. Code § 40.1-28.10 per employer. A change in employment classification or duties required by the employer does not allow the employer to place the employee in another training program. However, an employee may be placed in a training program with a subsequent employer, provided the placement would not violate the "no previous similar or related experience" requirement.

Public and private employers eligible

The training wage regulation applies to both private-sector and public-sector employers in the Commonwealth. State agencies, local governments, and public bodies may utilize the training wage provided they establish a compliant training program that meets all regulatory standards.

Effective date and regulatory history

The training wage statute took effect May 1, 2021, as part of the legislation that raised Virginia's minimum wage above the federal floor (2020 Acts of Assembly, chapters 1204 and 1242). The Commissioner of Labor and Industry adopted the first training-wage regulation (16 VAC 15-60) as an emergency regulation effective May 1, 2021. That emergency regulation expired April 30, 2023. After a period during which no regulation was in effect, the Commissioner adopted a permanent final regulation effective March 13, 2024. The permanent regulation remains in effect as of June 2, 2026.

Source: Va. Code § 40.1-28.10(A)(2); 16 Va. Admin. Code § 15-60-20; DOLI summary: Reinstatement of 16VAC15-60 ("Training Wage")