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Thursday, September 10, 2026

New Virginia Employment Laws Effective July 1, 2023 ... - Mondaq News Alerts

On July 1, 2023, several new employment-related laws passed by the General Assembly and signed into law by Governor Youngkin earlier this year became effective in Virginia. Below we highlight three of the most noteworthy new laws applicable to employers:

  1. Minimum Wage for Employees with Disabilities

Virginia Code § 40.1-28.9 historically allowed employers with a special certificate issued under 29 U.S.C. § 14(c) of the Fair Labor Standards Act ("FLSA") to employ individuals with disabilities at a sub-minimum wage. Virginia employers should be aware that, going forward, House Bill 1924 removes this exception to the Virginia Minimum Wage Act.

Effective July 1, 2023, no employer in Virginia may pay sub-minimum wages unless they had a 14(c) exemption prior to that date. Employers that had a 14(c) exemption prior to July 1, 2023, have until July 1, 2030 (when these exemptions expire) to increase the pay rates of disabled workers to at least the prevailing minimum wage in Virginia as of that date. All employers without a 14(c) exemption, should remember that, as of January 1, 2023, the minimum wage in Virginia is $12.00 per hour.

  1. Update for Virginia Government Contractors

House Bill 1684 amends Virginia's state debarment procedures and civil penalties such that state government contractors may now be barred from public state contracts if it is determined that the contractor has misclassified their workers.

Effective July 1, 2023, when the Department of Taxation...



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