VirginiaHB2382026 Regular SessionHouseWALLET

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

Sponsored By: Alfonso H. Lopez (Democratic)

Became Law

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

7 provisions identified: 3 benefits, 0 costs, 4 mixed.

Overtime pay for home care workers

Home care and similar direct support workers must be paid at least 1.5 times their regular rate for hours over 40 each week. The regular rate includes hourly pay plus other non‑overtime wages, divided by total hours. This raises pay on long weeks.

Stronger remedies for unpaid wages

If your employer owes you minimum wage, the law makes them pay the wages plus 8% yearly interest and your attorney fees. For unpaid overtime, courts award the overtime owed plus an equal amount in liquidated damages, and your reasonable lawyer fees. Employers can avoid the extra damages only if they prove good faith. You can sue under state law for federal overtime violations with the same federal remedies. Most overtime claims must be filed within two years, or three years if willful. Willful wage theft under $10,000 is a Class 1 misdemeanor; $10,000 or more or repeat offenses are a Class 6 felony.

Crackdown on worker misclassification

The law presumes a person paid for work is an employee. The hiring party must prove independent‑contractor status using IRS rules. If you were misclassified and your employer knew, you can sue within three years for lost wages, benefits, expenses, and attorney fees. Damages from misclassification count as recoverable wages. During a declared disease emergency, giving PPE does not count toward proving employee status.

State-run retirement savings at work

The state runs a payroll retirement savings program. Enrollment for eligible employers began July 1, 2023. Eligible employers must enroll on the Board’s timeline and set up payroll deposits, and workers are automatically enrolled unless they opt out. Only people with Virginia taxable income can participate. Employers are not fiduciaries and are not liable for workers’ choices or investments. Employers cannot contribute to or promote the state program, but they can start their own 401(a), 403(b), SIMPLE, or similar plan and then stop using the state program. Program contributions are exempt from some state wage‑payment timing and medium rules.

Prison credits and terminal release changes

Terminally ill people serving felonies can seek conditional release; the Parole Board must set rules. For certain serious crimes, earned credits are capped at 4.5 days per 30 days served. For other crimes, a four‑level system gives 15, 7.5, 3.5, or 0 days per 30, based on program participation and discipline. Classifications are reviewed at least yearly, cannot be lowered for lack of prison programs, and can be reviewed after removals; appeals use the grievance process. Juvenile serious offenders earn credits only with full participation, and credits cannot shorten time to parole eligibility.

Prevailing wage rules on public jobs

Public works paid with state money must require contractors to pay the prevailing wage. Localities may adopt the same rule for locally funded projects. Contracts at $250,000 or less are exempt. Employers must post wage rates on site, certify pay scales, and keep wage and hour records for six years; records must be produced within 10 days when asked. Underpayment triggers back wages plus 8% yearly interest, and debarment until paid; willful cases are a Class 1 misdemeanor. The Labor Commissioner can investigate and refer cases to the Attorney General, and bidders and contractors can sue to stop noncompliant contracts. Officials can request wage rates 10–20 days before bids.

Clear rules for how you get paid

The law sets how employers can pay you: cash, check, direct deposit, or a prepaid card. Prepaid cards need full written disclosure and your consent, unless you were hired after Jan 1, 2010 and did not give an account; then the card must allow at least one free withdrawal each pay period. Employers cannot withhold pay except for taxes, lawful deductions, or your signed OK, and must give a pay statement showing hours, rate, gross pay, and deductions. Hourly workers must be paid at least every two weeks or twice a month; salaried workers at least monthly. You must get all final wages by the normal payday, and most workers cannot be forced to sign wage‑forfeit agreements.

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

Passed Senate with substitute

Yes: 21 • No: 19

Senate vote 3/10/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote 3/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/9/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • 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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