Barring any last-minute gubernatorial intervention, Virginia’s minimum wage will rise to $9.50 per hour on May 1, 2021. Employers, especially small businesses, should prepare now for the anticipated increase.
In 2020, the General Assembly passed legislation that amended Virginia Code §§ 40.1-28.9 and 40.1-28.10 to raise the minimum wage to $15.00 per hour in stages and to eliminate minimum wage exemptions. This year’s increase to $9.50 an hour follows a gradual and scheduled approach to $15.00 per hour by 2026.
Pursuant to the amended Virginia Code § 40.1-28.10, the scheduled new hourly amounts are as follows:
- Effective May 1, 2021: $9.50
- Effective January 1, 2022: $11.00
- Effective January 1, 2023: $12.00
- *Effective January 1, 2025: $13.50; and
- *Effective January 1, 2026: $15.00
Tipped wages continue to follow the state minimum cash wage payment under the federal Fair Labor Standards Act at $2.13 per hour. However, “tipped employees” are defined in the amended code section as employees who regularly receive over $30.00 per month in tips.
The 2020 legislation also directed three Virginia agencies to conduct a joint review of both the feasibility and the potential impact of instituting a regional minimum wage.
This year, House Bill 2270 (2021) was introduced to further delay the increase to $9.50 per hour on May 1, but was defeated in committee. Any legislative intervention through the budgetary process remains unlikely at this point.
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*The General Assembly in 2024 would have to re-enact, or essentially confirm by legislation, the increases to $13.50 and $15.00 per hour for the years 2025 and 2026.
