Professional Service Agreement

Virginia Legislature Approves Delay in Minimum-Wage Increase

April 23, 2020

Both houses of the Virginia legislature have approved Governor Northam’s amendment to legislation that will increase the hourly minimum wage to $12.00 by 2023. The amendment was submitted to the legislature for reconsideration by Northam after he urged changing the start of the hourly minimum wage increase from January 1, 2021 to May 1, 2021. The hourly minimum wage will increase in phases:

  • $9.50, effective May 1, 2021;
  • $11.00, effective January 1, 2022; and
  • $12.00, effective January 1, 2023.

Unchanged in the legislation are provisions that require the legislature to act by June 30, 2024, for the last two minimum-wage increases to take effect, raising the $12.00 hourly minimum wage in effect in 2023 to:

  • $13.50 on January 1, 2025; and
  • $15.00 on January 1, 2026.

If the legislature does not act by June 30, 2024, the $12.00 hourly minimum wage is to remain in effect, and, effective January 1, 2025, the hourly minimum wage will be adjusted to reflect increases in the consumer price index.

For January 1, 2027, and thereafter, the hourly minimum wage will be adjusted to reflect increases in the consumer price index.

Additionally, three government agencies are to jointly review the effect of a regional minimum-wage increase, including how it could affect the cost of living, income inequality, and benefits. The agencies are to submit recommendations by December 1, 2023.

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