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.
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