VirginiaHB2382026 Regular SessionHouseWALLET

Minimum wage and overtime wages; payment of wages, misclassification of workers, civil actions.

Sponsored By: Alfonso H. Lopez (Democratic)

Signed by Governor

Summary

Labor and employment; payment of wages; minimum wage and overtime wages; misclassification of workers; prevailing wage rate; civil actions. Provides that an employer that violates provisions relating to minimum wage, overtime wages provisions, the misclassification of workers, or the prevailing wage rate is subject to civil actions for the applicable remedies, damages, or other relief available in an action brought pursuant to the civil action provisions currently available for the nonpayment of wages. Such provisions currently available provide that an employee may bring an action in a court of competent jurisdiction to recover payment of the wages, and the court is required to award the wages owed, an additional equal amount as liquidated damages, plus prejudgment interest thereon, and reasonable attorney fees and costs. Under current law, if the court finds that the employer knowingly failed to pay wages to an employee, the court is required to award the employee an amount equal to triple the amount of wages due and reasonable attorney fees and costs. The bill also prohibits an employer from taking certain retaliatory actions against an employee because the employee reports any information or allegation in good faith that, if true, amounts to a violation of any federal or state law or regulation to a supervisor, manager, or officer, or to any governmental body or law-enforcement official, including a report made in the ordinary course of the employee's employment, regardless of whether such report refers to a particular law or regulation.

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 8 benefits, 2 costs, 4 mixed.

Overtime pay protections for covered workers

Covered carrier employees and direct-support workers employed by home care agencies or other third-party providers receive overtime pay. They must get at least 1.5 times their regular rate for each hour over 40 in a workweek. The regular rate includes applicable non-overtime wages, subject to federal exclusions. Workers can use Virginia's wage-claim process to recover unpaid overtime. Claims for federal overtime violations follow federal definitions, exemptions, calculation rules, and remedies, with a three-year filing deadline.

Workers can recover more unpaid wages

Workers can sue alone, jointly, or through a collective action for unpaid wages. Recovery includes wages owed, an equal amount in added damages, and 8% yearly interest from the due date. Workers can also recover reasonable lawyer fees and court costs. For knowing violations, courts must award three times the wages due, plus reasonable fees and costs. Workers generally have three years to sue; that deadline pauses during the specified agency case until resolution is communicated or the complaint is withdrawn, whichever comes first.

Construction workers gain another wage payer

For construction contracts entered into on or after July 1, 2026, general contractors can share responsibility for subcontractor wages. This covers projects above $500,000, including combined projects under one contract, but excludes single-family residential projects. The general contractor must have known or should have known about the underpayment. Both parties are responsible for the greater of agreed wages or legally required wages. The general contractor is treated as an employer under Virginia's wage-payment law and shares applicable penalties.

Misclassified workers can sue knowing employers

Workers wrongly treated as independent contractors can sue employers that knew about the misclassification. A worker's representative can also bring the case. The action can seek applicable damages and other available relief. The law does not set a specific damages amount.

Prevailing pay for public construction workers

State-funded public works contracts must require prevailing wages; localities can adopt similar rules for covered local contracts. Contracts worth $250,000 or less are exempt. Covered contractors must certify pay scales, post prevailing rates, and keep wage and hours records for at least six years. Underpaid workers can recover back wages plus 8% yearly interest. Violators can lose bidding eligibility until restitution, and willful violations are Class 1 misdemeanors.

State retirement savings access for workers

Virginia provides a state-administered retirement savings program for eligible workers and self-employed people with Virginia taxable income. Eligible employers must facilitate payroll savings and enroll employees unless they opt out under Board procedures. Employees can stop participating at any time. Workers without employer participation and self-employed people can join under terms set by the Board. Employer enrollment began July 1, 2023, or as soon afterward as practicable, on a Board-set schedule.

Virginia helps workers collect unpaid wages

Virginia's labor commissioner can investigate, subpoena witnesses, and collect unpaid wages, damages, and penalties. Recovered wages and damages can go to affected workers. After a referral, the Attorney General can sue for wages, damages, penalties, legal costs, and other authorized relief. After a final order or judgment, approved private lawyers can help collect amounts owed, with reasonable lawyer fees assessed. Employers who knowingly fail to pay face penalties up to $1,000 per violation; they have 15 days after notice to request an informal conference. Those penalties go to Virginia's general fund, not workers.

Prompt corrections limit workers' wage damages

For wage cases started on or after July 1, 2026, employers have a limited defense against added damages and penalties. They must prove good faith and reasonable grounds for believing their actions were lawful. They must also pay all unlawfully withheld wages within 14 days after notice. When both requirements are met, the court or labor commissioner must withhold added damages and penalties.

Construction businesses get firm payment deadlines

Owners must pay general contractors within 60 days after an invoice for satisfactorily completed work. Contractors must pay subcontractors by the earlier of 60 days after invoicing or seven days after receiving payment for that work. Owners withholding payment must give written reasons and amounts within 45 days; contractors must notify subcontractors within 50 days. Subcontractor payment generally cannot depend on upstream payment, except for insolvency or bankruptcy, and late payments trigger statutory interest. Retainage remains allowed; matching payment, notice, and interest terms must extend down the subcontract chain on non-single-family projects above $500,000.

Clearer pay statements for Virginia workers

Covered employers must give workers a written or online pay statement every regular payday. It must identify the employer and show pay rates, gross wages, deductions and their purposes, and enough detail to calculate take-home pay. Hours must appear for hourly workers and salaried workers below the federal overtime-exemption salary level. Employers must keep statements for at least three years after the work. Agricultural, agribusiness, and forestry employers must provide gross-pay and deduction statements when workers request them.

Sentence credit limits for eligible offenders

Serious juvenile offenders' consideration for sentence credits depends partly on full participation in and cooperation with offered programs. Virginia's juvenile justice department must report on their rule-following and progress toward treatment goals during that sentence period. Earned sentence credits cannot shorten the time anyone must serve before becoming eligible for parole.

Regular worker paydays with monthly exceptions

Covered businesses and domestic-service employers must set regular pay periods and pay rates. Salaried employees must be paid at least monthly; hourly employees must be paid every two weeks or twice monthly. Executive personnel and qualifying work-study students are excluded from these pay-frequency rules. Institutions or employers covered by the referenced workers' compensation rule can choose monthly pay only when each affected employee agrees.

Worker pay cards gain limited safeguards

Employers can pay wages by cash, qualifying check, transfer to an employee-designated account, or prepaid debit card. Card payments generally require written fee disclosures and employee consent. Without affirmative consent, cards are allowed only for workers hired after January 1, 2010, who have not designated an account. In that case, the card network must offer at least one free withdrawal or transfer each pay period.

Employer retirement choices with program limits

Participating employers are not responsible for running the state retirement program, its investments, or investment performance. Employers can establish their own retirement plan at any time. Once they do, they must stop facilitating state-program contributions under Board procedures. Participating employers cannot contribute to, endorse, or promote the state program.

Sponsors & Cosponsors

Sponsor

  • Alfonso H. Lopez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 370 • No: 279

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 64 • No: 36

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 20 • No: 19

House vote • 3/14/2026

Conference report agreed to by House

Yes: 62 • No: 35

Senate vote • 3/12/2026

Senate insisted on substitute Block Vote

Yes: 40 • No: 0

House vote • 3/11/2026

Senate substitute rejected by House

Yes: 0 • No: 98 • Other: 1

Senate vote • 3/10/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/10/2026

Passed Senate with substitute

Yes: 21 • No: 19

Senate vote • 3/9/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 3/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/6/2026

Reported from Finance and Appropriations

Yes: 10 • No: 4

Senate vote • 3/2/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 8 • No: 6

House vote • 2/2/2026

Read third time and passed House

Yes: 64 • No: 35

House vote • 1/27/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 7

House vote • 1/22/2026

Subcommittee recommends reporting with substitute

Yes: 5 • No: 2

Actions Timeline

  1. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (64-Y 36-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1040)

    4/22/2026Governor
  4. Reenrolled bill text (HB238ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1040 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Fiscal Impact statement From VCSC (4/20/2026 4:21 pm)

    4/20/2026House
  11. Substitute bill reprinted 26110450D

    4/16/2026House
  12. Fiscal Impact statement From VCSC (4/14/2026 12:41 pm)

    4/14/2026House
  13. Governor's recommendation received by House

    4/13/2026Governor
  14. Fiscal Impact Statement from Department of Planning and Budget (HB238)

    4/2/2026House
  15. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  16. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  17. Signed by Speaker

    3/31/2026House
  18. Bill text as passed House and Senate (HB238ER)

    3/30/2026House
  19. Enrolled

    3/30/2026House
  20. Signed by President

    3/30/2026Senate
  21. Fiscal Impact Statement from Department of Planning and Budget (HB238)

    3/23/2026House
  22. Conference report agreed to by Senate (20-Y 19-N 0-A)

    3/14/2026Senate
  23. Conference report agreed to by House (62-Y 35-N 0-A)

    3/14/2026House
  24. Fiscal Impact statement From VCSC (3/14/2026 2:04 pm)

    3/14/2026House
  25. Conference Report released

    3/14/2026

Bill Text

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