Virginia’s business landscape is thriving, attracting everyone from small retail owners to bustling hospitality operators. With the growing workforce and expanding local economies, labor law compliance has become more important than ever. To help you navigate this complex area, we’ve compiled an up-to-date overview of Virginia labor laws. Whether you’re running a mom-and-pop shop, scheduling employees in a busy restaurant, or managing a healthcare facility, understanding state and federal regulations ensures both legal compliance and a healthy work environment.

Below, you’ll find details on minimum wage, overtime, meal breaks, employee classification, and more—everything you need to keep your workforce happy and your business compliant. You’ll also see references to official sources such as the Virginia Department of Labor and Industry (DOLI) and Virginia’s Legislative Information System. If you want to streamline scheduling and track hours more efficiently, tools like Shyft can be a valuable asset for shift-based industries. Let’s dive in!

Please note: This guide provides general information, not legal advice. For particular concerns, consult legal counsel or official state resources.

1. Minimum Wage

Virginia’s minimum wage stands at $12.00 per hour as of 2023, with scheduled increases to $13.50 in 2025 and potentially $15.00 in 2026, pending legislative reenactment. The current law is established under the Code of Virginia § 40.1-28.10. No counties or cities in Virginia have introduced local minimum wage rates exceeding the state rate, so the state-level minimum wage governs all localities.

Always confirm future increases by checking official resources like DOLI or the state legislature’s website. If you’re planning long-term staffing budgets, keep in mind these scheduled hikes to avoid surprises.

2. Tipped Wages

Virginia follows federal Fair Labor Standards Act (FLSA) standards for tipped employees. You may pay a base wage of $2.13 per hour—often called a “tipped wage”—as long as the employee’s tips push their total earnings to at least the state minimum wage. If tips don’t cover that difference, the employer is required to provide the shortfall.

Industries like restaurants, bars, and hospitality rely on tips, so make sure you keep accurate tip records. The U.S. Department of Labor’s website offers guidance on federal tip credit rules, which remain applicable in Virginia.

3. Overtime & Double Time

Overtime in Virginia is primarily covered by the federal FLSA, mandating that non-exempt employees be paid time-and-a-half for hours worked beyond 40 in a given workweek. However, the Virginia Overtime Wage Act (VOWA), first enacted in 2021 and partially amended in 2022, imposes some state-specific requirements. Under the Code of Virginia § 40.1-29.2, non-exempt employees remain entitled to 1.5 times their regular rate of pay when they exceed 40 hours per week.

Double time (2x an employee’s rate) is not legally required under Virginia or federal law unless there is a specific agreement or policy. Double time sometimes appears in union contracts or employer-specific policies but is not mandated at the state level.

4. Meal and Rest Breaks

For adult employees, Virginia does not have a general law requiring meal or rest breaks. Instead, most employers follow best practices or comply with any federal guidelines for workplace safety and comfort. If you do provide breaks under 20 minutes, they are typically considered paid under the FLSA.

For workers under 16, state law requires a 30-minute meal break if they work more than five consecutive hours (Code of Virginia Title 40.1, Chapter 5). It’s wise to clearly outline break policies in your employee handbook, especially if you employ minors.

5. Child Labor Laws

Protecting minors in the workforce is a high priority for Virginia’s Department of Labor and Industry. Workers under 16 generally need an employment certificate (work permit). Restrictions on work hours vary by the minor’s age and whether school is in session. Hazardous occupations are generally off-limits to those under 18.

You can find detailed guidance on acquiring permits, approved work hours, and prohibited job tasks on the DOLI Child Labor Law page. Violations can lead to fines and other penalties, so be sure you comply before hiring any minors.

6. Final Paycheck & Wage Payment Rules

Under Code of Virginia § 40.1-29, employers must pay departing employees by the next regular payday. This applies whether the employee leaves voluntarily or is terminated. Unlawful deductions without the employee’s consent are prohibited, and any authorized deductions must appear clearly on wage statements.

To protect your business, ensure you maintain thorough payroll records and a well-documented exit process. Prompt, accurate final pay is a sign of professionalism and reduces the likelihood of wage disputes.

7. Employee Classification (Employee vs. Independent Contractor)

Virginia has taken steps to curb misclassification. Under Code of Virginia § 40.1-28.7:7, there’s a presumption that a worker is an employee unless the employer can demonstrate otherwise using IRS guidelines. Misclassifying workers as independent contractors can lead to serious penalties, including fines and back taxes.

Regularly audit your workforce to ensure you’re appropriately classifying your team. This is especially critical in construction, hospitality, and other gig-heavy industries where independent contractor arrangements are common. You can learn more on the DOLI Employment Classification page.

8. Leave Requirements (Paid Sick Leave, Family & Medical)

While Virginia does not have a universal paid sick leave law for all employees, there is a targeted sick leave mandate for certain home health workers and personal care aides enacted in 2021 (HB 2137). Most other employers rely on federal requirements or adopt their own leave policies as a benefit.

The federal Family and Medical Leave Act (FMLA) typically applies to businesses with 50 or more employees, granting up to 12 weeks of unpaid, job-protected leave for qualifying reasons. The Virginia Human Rights Act also protects employees with pregnancy-related conditions by requiring reasonable workplace accommodations if you have five or more employees.

9. Anti-Discrimination, Harassment, and Required Training

With the 2020 Virginia Values Act, the state expanded its anti-discrimination protections significantly. Under the Division of Human Rights, it is illegal to discriminate based on race, color, religion, national origin, sex, sexual orientation, gender identity, marital status, pregnancy, childbirth or related medical conditions, and more. Harassment (including sexual harassment) is also prohibited.

Proactive training for managers can help prevent issues. While Virginia doesn’t mandate general sexual harassment prevention training statewide (like some other states do), providing it voluntarily is wise. If a complaint arises, well-documented policies and training can help protect both your employees and your business.

10. Pay Transparency

Employees in Virginia have the right to discuss and share wage information without retaliation (Code of Virginia § 40.1-28.7:4). This is aligned with federal labor laws designed to protect open discourse about pay. While Virginia doesn’t require employers to publish salary ranges for all postings, it’s becoming a more common practice to promote fairness and attract top talent.

11. Workplace Safety (VOSH)

The Virginia Occupational Safety and Health (VOSH) program, overseen by DOLI, is a state plan approved by federal OSHA. It largely mirrors federal standards but may include extra requirements (e.g., certain infectious disease standards). Employers are required to maintain a safe workplace, free from recognized hazards that cause or are likely to cause death or serious harm.

Reporting guidelines require employers to notify VOSH of work-related fatalities within eight hours and in-patient hospitalizations, amputations, or losses of an eye within 24 hours. Severe violations can trigger hefty fines, so be sure to keep safety protocols up-to-date.

12. Workers’ Compensation

Employers with three or more workers—whether full-time or part-time—must carry workers’ compensation insurance in Virginia. This insurance covers medical expenses and lost wages for employees who sustain work-related injuries or illnesses. For official details, consult The Virginia Workers’ Compensation Commission and the Code of Virginia Title 65.2.

13. Unemployment Insurance (Brief Mention)

The Virginia Employment Commission oversees unemployment insurance. Most businesses must pay unemployment taxes if they meet specific wage or employment thresholds. Laid-off workers can apply for benefits if they meet eligibility requirements, which typically involves sufficient wages in a base period and active job searching. While not as complex as some other laws, it’s important to file your employer contributions accurately to avoid penalties.

14. Privacy & Data Protection

The Virginia Consumer Data Protection Act (VCDPA) took effect on January 1, 2023, regulating how businesses handle personal data of consumers in the state. It specifically applies to entities that control or process the data of at least 100,000 consumers or derive 50% or more of revenue from selling personal data, controlling or processing data of at least 25,000 consumers. Although it currently places fewer requirements on employee data than California laws (CCPA/CPRA), employers processing high volumes of consumer data should stay alert to any regulatory changes.

Check the Code of Virginia Title 59.1, Chapter 52 for the full text. Even if VCDPA doesn’t apply to you, adopting good data security practices is crucial to protect employee and customer information.

15. Drug & Alcohol Testing / Cannabis Policies

Recreational marijuana is legal for adults 21 and older in Virginia, but workplaces maintain the right to enforce drug and alcohol testing policies and disciplinary measures. Employers in federally regulated or safety-sensitive industries often have stricter testing requirements. Similarly, although some medical cannabis protections exist, there is no overarching law preventing employers from restricting on- or off-duty usage.

For details on the decriminalization and possession rules, refer to the Marijuana Control Act (Code of Virginia Title 4.1). Clarify your substance use policies in writing to avoid confusion or legal disputes.

16. Recordkeeping & Reporting Requirements

Employers in Virginia must keep payroll and other employment records for at least three years, documenting hours worked, wages paid, and any deductions. The Code of Virginia § 40.1-29 outlines these obligations. Additionally, mandatory labor law posters—such as minimum wage, unemployment compensation, and workers’ compensation notices—must be displayed prominently.

You can request or download official posters from DOLI’s website. Accurate recordkeeping is not only a legal requirement but also a vital practice in addressing any employee inquiries or audits that may arise.

17. Whistleblower Protections

Under the Virginia Whistleblower Protection Law (§ 40.1-27.3), employees are safeguarded from retaliation if they report legal violations or cooperate with investigations. This covers refusing to participate in unlawful actions at work. Ensuring employees can voice concerns without fear fosters a transparent, ethical workplace.

18. Special Industry Laws

Certain businesses face additional nuances. For instance, Agricultural employees have historically been exempt from some provisions of Virginia’s minimum wage and overtime regulations, but changes continue to narrow these exemptions. Healthcare institutions may have to address mandatory overtime restrictions, though Virginia does not have a broad statewide prohibition outside specific scenarios. Hospitality businesses generally follow tip credit rules, but must ensure accurate tip pooling and distribution.

If you operate in these or other specialized industries, stay updated on new legislation and consult state resources or trade associations for guidance tailored to your sector.

19. Penalties & Enforcement

Noncompliance can be costly. Wage and hour violations may bring civil penalties, back pay, or even criminal action if willful. Discrimination complaints are handled by the Division of Human Rights and potentially the EEOC. Workplace safety citations, under VOSH, can carry significant financial repercussions. Meanwhile, misclassification violations and whistleblower retaliation expose employers to lawsuits, legal fees, and damage to their reputation.

20. Best Practices & Compliance Tips

Stay informed about wage increases. Track state minimum wage changes so you’re never caught off guard.

Review employee classifications annually. Independent contractor vs. employee missteps are a major legal pitfall.

Maintain up-to-date records. A robust system for tracking hours, leaves, and wages simplifies payroll and compliance checks. Tools like Shyft can help streamline shift scheduling to ensure accurate reporting.

Provide anti-discrimination training. Even if not mandated, education can drastically reduce the likelihood of complaints.

Post required notices prominently. Access all mandatory posters at the DOLI poster request page.

Summary

From minimum wage hikes to special requirements for minors, Virginia’s labor laws require close attention. Employers must keep current with legislation, maintain accurate records, provide a safe workspace, and respect workers’ rights. Failing to comply can result in fines, employee lawsuits, or damage to your brand. On the positive side, a well-informed approach fosters a respectful, engaged, and productive team—key elements for any thriving business.

Conclusion

Staying ahead on Virginia labor laws isn’t just about avoiding penalties—it’s about creating a strong, compliant workplace where employees feel protected and valued. Regularly check in with the Virginia Department of Labor and Industry for updates, and consider consulting legal professionals for more nuanced questions. By addressing the fundamental elements—wages, classifications, safety, and anti-discrimination—you’ll lay the groundwork for a workplace that employees appreciate and that the law supports.

Equipped with this knowledge, you can focus on what matters most: running a successful business that respects its workforce. Consistent compliance planning, alongside modern scheduling and recordkeeping tools, will help ensure you’re poised for long-term success in the Commonwealth of Virginia.

FAQ

1. Are Virginia employers required to offer paid sick leave?

Only certain home health workers and personal care aides are legally entitled to paid sick leave under Virginia law. Most other employers rely on federal FMLA or voluntarily provide sick leave as a benefit.

2. Does Virginia have a higher minimum wage than the federal rate?

Yes. As of 2023, Virginia’s minimum wage is $12.00 per hour, which exceeds the federal rate of $7.25. The state’s wage is scheduled to increase further in 2025 and 2026, subject to legislative approval.

3. How do I know if I’ve misclassified an employee?

Virginia law presumes individuals are employees unless an employer can prove independent contractor status under IRS guidelines. If you’re unsure, review the DOLI classification resources and seek legal advice.

4. Can employers still test for marijuana use after legalization?

Yes. Although possessing small amounts of cannabis is legal for adults, employers may implement drug and alcohol testing policies. Safety-sensitive positions or federal contractors often require more stringent rules.

5. What mandatory posters must be displayed? 

Common required posters include the Virginia Minimum Wage Act poster, Job Safety and Health Protection (VOSH) notice, Unemployment Compensation notice, and a Workers’ Compensation notice. You can download or request these from DOLI’s website.