On April 12, 2023, Virginia adopted House Bill 1924 (HB 1924) to withdraw the labor law provision that allowed employers to pay wages below the minimum wage rate to workers with disabilities. HB 1924 becomes effective on July 1, 2030.Minimum Wage Requirements
The Virginia Minimum Wage Act (VMWA) requires employers in the state to pay their employees wages that are at least equal to the state’s minimum wage rate. The state’s minimum wage rate is set to increase annually until it reaches $15 per hour by Jan. 1, 2026. Subsequently, this rate will be adjusted annually to reflect the cost of inflation.
Minimum Wage Exemption for Workers with Disabilities
The VMWA currently provides an exemption that allows employers to pay a lower minimum wage rate to employees who qualify for the federal Fair Labor Standards Act exemption for workers with disabilities.
HB 1924 amends the VMWA by changing the definition of “employees” subject to the minimum wage requirement and sunsetting the ability of employers to pay a lower minimum wage rate to workers with disabilities. In effect, these amendments will require employers to pay the state’s minimum wage rate to nonexempt employees, including those with disabilities.
Impact on Employers
Employers that use the minimum wage exemption for workers with disabilities should review their payroll processes to ensure compliance with the state’s minimum wage requirements by July 1, 2030.
Previous SIMA Payroll News:
Supreme Court Reaffirms Qualifications for FLSA Overtime Exemptions
Significant Form I-9 Changes Are Expected to Impact Employers in 2023
Disclosures This content is not intended to be exhaustive, nor should it be viewed as legal or tax advice. Information presented is believed to be current and is provided for general information and educational purposes based upon publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of this information. It is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid any penalties. You should always consult an attorney or tax professional regarding your specific legal or tax situation. This information may change at any time and without notice. All opinions represent the judgment of the author on the date of the post and are subject to change. Content should not be viewed as personalized advice. SIMA reserves the right to edit blog entries and delete comments that contain offensive or inappropriate language. ©2023 Zywave, Inc. All rights reserved.
