Running a compliant operation in Virginia means keeping a close eye on tipped wages and tip credits.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Even though Virginia is home to Colonial Williamsburg, their wage and hour laws are determinedly not stuck in the 1700s.
Virginia’s wage and hour laws have evolved in recent years, with the state minimum wage now indexed for inflation and new worker protections introduced around classification and pay transparency.
While Virginia remains less regulated than states like California or Washington, employers must still pay close attention to federal requirements, state-specific rules, and company policies that govern areas like PTO, reimbursements, and final pay.
Whether you manage workers directly or through an Employer of Record (EOR) like HireArt, understanding Virginia’s labor standards is key to remaining compliant.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
Employers in Virginia must pay the state minimum wage or any applicable higher local or federal rate.
As of 2025, the state minimum wage is $12.41 per hour, and it will continue to increase annually based on inflation indexing. Employers must always follow the higher applicable rate between state and federal law.
Employers must follow the higher applicable rate between state and local law.
Virginia does not have a broad, statewide paid sick leave law.
Currently, paid sick leave is required only for certain home health workers who provide personal care, respite, or companion services. Other employers may establish voluntary paid sick leave policies, which should be clearly outlined in handbooks or employment agreements.
There are no current efforts to expand statewide coverage, though local ordinances could emerge in the future.
Virginia does not have local paid leave or wage ordinances that exceed state law.
While some states allow cities or counties to enact more generous labor protections, Virginia law generally preempts local jurisdictions from creating independent wage or leave standards. Employers should therefore follow state and federal requirements as their guiding framework.
Virginia does not require meal or rest breaks for adult employees under state law.
Employers should follow internal policy, collective bargaining agreements (CBAs), and the federal Fair Labor Standards Act (FLSA) for guidance on reasonable break periods. Providing consistent breaks—even when not required—supports productivity and helps prevent burnout among employees.
Whether unused vacation or PTO must be paid upon termination in Virginia depends on the employer’s written policy or employment contract.
State law generally defers to company policy unless accrued vacation is considered earned wages. Employers should maintain clear written policies specifying whether PTO balances are paid out upon separation.
Reimbursement requirements in Virginia are policy-driven, meaning employers establish their own standards for covering business expenses.
Employers should ensure that any wage deductions comply with state law—deductions cannot reduce pay below minimum wage and must be authorized in writing. Transparent reimbursement procedures help employers avoid wage disputes and maintain compliance.
Virginia law requires employers to issue accurate wage statements and timely final payments.
Providing detailed documentation helps ensure compliance with Virginia’s wage payment laws and promotes trust with employees.
Virginia applies federal and state economic-realities tests to determine whether a worker should be classified as an employee (W-2) or an independent contractor (1099).
When an employer exerts significant direction or control over how work is performed, the worker must be treated as an employee. Misclassification can result in substantial penalties, including back pay, unpaid taxes, and civil fines under Virginia’s worker protection statutes.
HireArt serves as an Employer of Record (EOR) to help companies navigate Virginia’s wage and hour requirements with confidence. Through HireArt, employers can:
By partnering with HireArt, companies simplify compliance management and reduce the risk of costly wage-and-hour violations while maintaining a high-quality employee experience.
