Virginia’s hourly minimum wage would rise to at least $12 by 2023 from $7.50 under a measure that the legislature cobbled together in last-minute negotiations and passed March 8.
Gov. Ralph Northam (D) has until April 6 to act on the legislation or it would become law without his signature.
The state’s hourly minimum wage would rise to $9.50 on Jan. 1, 2021; to $11 on Jan. 1, 2022; and to $12 on Jan. 1, 2023, under compromise substitute legislation (S.B. 7, H.B. 395).
The state legislature would have to act by July 1, 2024, for the last two minimum-wage increases to take effect, raising the $12 hourly minimum wage in effect in 2023 to $13.50 on Jan. 1, 2025; and to $15 on Jan. 1, 2027. If the legislature does not act by 2024, the $12 minimum wage would remain effect and be reviewed each year for inflation-related adjustments.
Additionally, three government agencies would be required 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 would have to submit recommendations by Dec. 1, 2023.
To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergtax.com
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