May 2026
 

State Updates

Virginia Expands Wage and Overtime Requirements

06/04/26

Author: ADP Admin/Tuesday, June 2, 2026/Categories: State Compliance Update, Virginia

Highlights


Impacted Employers: All employers as defined under the Fair Labor Standards Act.

Effective Date: July 1, 2026

Summary: Virginia has enacted legislation which, among other things, clarifies the definition of wages, amends overtime and recordkeeping requirements and extends protections for violations of certain laws.

 

Next Steps: Update pay and recordkeeping policies and procedures to help ensure compliance with the changes under the law byJuly 1, 2026.

The Details

Virginia has enacted legislation (House Bill 238), which, among other things, clarifies the definition of wages, amends overtime and recordkeeping requirements and extends protections for violations of certain laws. House Bill 238 takes effect July 1, 2026.

Overtime

Under the law, an employer must pay an individual who is employed by a home care agency or other third-party provider to provide direct support services at least one and one-half times the employee's regular rate for any hours worked in excess of 40 in a workweek. Direct support services are personal care services that assist participants with instrumental activities of daily living.

Wages Defined

The law clarifies the definition of wages, including requirements for time and medium of payment, withholding of wages, and written statements of earnings.

Under the law, wages include any remuneration an employer owes to an employee, such as:

  • Hourly wages
  • Minimum wages
  • Piece rate wages
  • Day rates
  • Salaries
  • Overtime wages
  • Legally required prevailing wages
  • Commissions
  • Tips
  • Bonuses
  • Damages available due to the misclassification of an employeeunder the law.

Recordkeeping

The law also requires an employer to keep pay statements or an online accounting for at least three years following the date that the employee performed the work.

Penalties

The law expands protections for employees when an employer is found to have violated certain laws, including The Virginia Minimum Wage Act.

On or after July 1, 2026, an employer may not receive additional penalties when they:

  • Demonstrate good faith and reasonable grounds for their actions; and
  • Pay all wages that were found to be unlawfully withheld within 14 days of being notified of the violation.

See the text of the law for further details.

Next Steps

Update pay and recordkeeping policies and procedures to help ensure compliance with the changes under the law by July 1, 2026.

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