Virginia’s General Assembly passed several changes to the commonwealth’s wage-and-hour laws during its 2026 regular session. Employers should pay attention to these important developments as they phase in.
Increased Minimum Wage
Senate Bill 1 codifies the adjusted state hourly minimum wage of $12.77 per hour that became effective on Jan. 1, 2026. It also increases the minimum wage to $13.75 per hour effective Jan. 1, 2027, and to $15.00 per hour effective Jan. 1, 2028.
Farm Workers Now Eligible for Minimum Wage
Senate Bill 121 eliminates the exemption from Virginia’s minimum wage requirements for farm laborers and employees. The bill will take effect on Jan. 1, 2027.
Domestic Workers Eligible for Overtime
Senate Bill 28 enables domestic workers to be eligible for overtime pay under Virginia law. Domestic workers include salaried employees, independent contractors, and fulltime and parttime workers whose services encompass “services of a household nature,” such as childcare, caring for the elderly or disabled, and housekeeping. This bill marks a significant change for live-in domestic workers, who are generally not eligible for overtime pay under federal law or current Virginia law. This law takes effect on July 1, 2028.
Civil Remedies Streamlined
House Bill 238 overhauls and streamlines the civil remedies available to employees who bring minimum wage, overtime, misclassification and prevailing wage rate claims against employers. Under the new law, employers face the same penalties for such violations as they would face for nonpayment of wages, which include back pay, liquidated damages of double back pay, prejudgment interest, and attorneys’ fees and costs. For knowing violations, the employer faces liability for liquidated damages in the amount of triple the wages owed. These changes take effect on July 1, 2026.
The new law also authorizes the commissioner of the Virginia Department of Labor and Industry to investigate and initiate administrative proceedings into violations. The commissioner can issue subpoenas, examine witnesses under oath and compel employers to submit sworn statements. The commissioner can also refer the matter to the Virginia attorney general for a civil enforcement action.
The amendment provides employers with a good faith defense in any administrative or civil proceedings commenced on or after July 1, 2026. To rely on this defense, an employer must demonstrate good faith and reasonable grounds for believing its conduct was lawful, and the employer must cure the alleged violation by paying all wages due within 14 days of notification. If the employer satisfies these requirements, it would not be subject to additional damages or penalties.
Employers should prepare now for these coming changes. For further information or questions about these or other aspects of Virginia employment law, contact the authors of this alert or a member of the firm’s labor and employment group or its Wage & Hour / Collective Class Action Practice Group.