Virginia Governor Seeks Delay in Minimum-Wage Increase

Virginia’s hourly minimum wage would rise to $9.50 from $7.25 on May 1, 2021, four months later than planned, after Gov. Ralph Northam (D) recommended changes to a bill.

The wage would rise to at least $12 an hour by 2023 in the bill that was under consideration by the legislature.

Additionally, bills dealing with worker misclassification and wage-theft were signed by Northam and would take effect July 1, 2020, the governor’s office said April 12 in a news release.

Minimum Wage

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 legislation (S.B. 7, H.B. 395) sent March 20 to Northam.

Northam countered with a recommendation that the initial wage increase to $9.50 occur May 1, 2021, rather than Jan. 1, 2021. He expressed interest in supporting workers while helping the state’s economy rebound from the Covid-19 crisis.

Northam’s recommendation to the state Senate, now must be reconsidered by the General Assembly.

The amended bill would become law if a majority of those in both legislative chambers agree with Northam’s recommendation, the Virginia legislature website said. If the legislature does not agree to the amendments, the measure is restored to its original form and resubmitted for Northam to reconsider.

Unchanged by Northam’s recommendations were provisions that would require the state legislature 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. The measure also would eliminate the training wage.

The hourly minimum wage is $11 in Maryland, with scheduled increases to at least $12,20 in 2022. The hourly minimum wage is $14 in the District of Columbia, with an increase to $15 scheduled to occur on July 1, 2020.

Worker Misclassification

Worker-misclassification investigations, claims, penalties, and retaliation protections were addressed in the following bills that were signed by Northam. The measures generally take effect July 1, 2020.

• The Department of Taxation may oversee investigations into potential worker misclassification and to impose penalties, under measures (H.B. 1407, S.B. 744) that were signed April 6 and take effect Jan. 1, 2021.

• Misclassified workers may bring civil actions for damages against employers under measures H.B. 984, which was signed March 10, and S.B. 894, which was signed March 18.

• Employees or independent contractors who report misclassification are protected from retaliation from employers, who may be subjected to a civil penalty up to the amount of employees’ lost wages, under measures H.B. 1199, which was signed March 10, and S.B. 662, which was signed March 11.

• Contractors must properly classify all workers as employees or independent contractors, and providing for sanctions against contractors that intentionally misclassify workers, under a measure (H.B. 1646) signed April 6.

Wage Theft

Wage-theft reporting and investigations, retaliation and recovery were addressed in the following bills that Northam recently signed and that are effective July 1, 2020.

• Workers may recover unpaid wages and to award reasonable attorneys’ fees, plus triple the amount of wages owed if a court finds that an employer knowingly failed to pay an employee’s wages, under a measure (H.B. 123) signed April 8.

• Workers may recover unpaid wages and general contractors may be held liable and subject to penalties for wage theft in some cases, under a measure (S.B. 838) signed April 11.

• The Department of Labor and Industry’s power to investigate wage-theft complaints was expanded under measures (H.B. 336, S.B. 49) signed March 10.

• Employees who report wage theft are protected from retaliation from their employer under bills (H.B. 337, S.B. 48) signed April 9.

• Employers are not to enter into noncompete contracts with low-wage employees, and low-wage employees may bring a lawsuit against employers that try to enforce a non-compete agreement, under legislation (H.B. 330, S.B. 480) signed April 9.