Minimum Wage Increases on May 1, 2021
As originally passed by the General Assembly, the minimum wage law was scheduled to go into effect on January 1, 2021. However, Governor Ralph Northam and the General Assembly approved an amendment to delay the first increase to May 1, 2021 providing employers an additional four months to recover from the economic impact of the COVID-19 pandemic.
The hourly minimum wage in Virginia will increase to $9.50 beginning May 1, 2021.
Also, employers need to be prepared that the hourly minimum wage will increase again on January 1, 2022 to $11.00 and then to $12.00 on January 1, 2023.
The increases to $13.50 on January 1, 2025, and $15.00 on January 1, 2026, are contingent on the General Assembly approving those increases by July 1, 2024. Additional details including an FAQ section on the new minimum wage is available HERE provided by the Virginia Department of Labor.
There is a training wage of 75% of the Virginia minimum wage for an employee’s first 90 days while enrolled in an established employer on-the-job or other training program which meets the standards set by regulations adopted by the Commissioner of Labor. You can learn more on what is an appropriate training program from the Department of Labor HERE.
The new law also directs three state agencies to conduct a joint review of the feasibility of implementing a regional minimum wage structure in the Commonwealth. The agencies must submit their findings to the General Assembly and Governor by December 1, 2023.