Virginia Minimum Wage Guide for 2026

Virginia Minimum Wage - Historical Rates Table

Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.

Virginia Tipped Employees

According to regulations from the Fair Labor Standards Act, “Tipped employees” are classified as workers regularly making over $30 a month in tips.

Unlike most states with a unique minimum wage rate, Virginia's minimum wage rate for tipped employees follows federal law. This means employers only have to pay employees $2.13 per hour as long as the employee makes a minimum of $10.64 per hour in tips, which adds up to Virginia's minimum wage of $12.77 per hour. This is known as a tip credit for the amount earned in tips.

To make up the difference in pay, if an employee makes less than $10.64 per hour in tips in a given work week, the employer must make the employee’s earnings equal to $12.77 per hour for the work week.

There are no plans to increase the tipped minimum wage rate from the federal amount. However, employers must compensate tipped employees if he or she do not make at least $10.64 per hour in tips.

Overtime Requirements

Under the Virginia Overtime Wage Act, all employees, including tipped employees, working over 40 hours per week or 12 hours per day / shift must be paid one-half times their regular rate of pay in overtime.

Tax on Tips Update from the One Big Beautiful Bill Act

Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows applicable employees, including those self-employed, to claim a tax reduction on qualified tips received from his or her occupation. The tip tax deduction is effective from January 1, 2025 through December 31, 2028.

The occupation must be listed by the IRS as “customarily and regularly” receiving tips and must be reported on a Form W-2 or other applicable statements that report qualified tips (ex: Form 4137 for tips not reported to the employer).

An employee can deduct an annual maximum amount of $25,000. For self-employed individuals, the deduction amount cannot exceed his or her net income from the trade or business where the tips were earned. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 for employees filing taxes jointly, the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.

To be eligible for the tip tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for overtime.

Note that self-employed individuals categorized in a Specific Trade or Business (SSTB) under section 199A are NOT eligible.

Tip Reporting Requirements

All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the cash tips received and the occupation of the tip recipient.

Training Minimum Wage in Virginia

Newly hired employees can be paid up to 75% of the state's minimum wage rate, being $9.58 per hour, OR the federal minimum wage (whichever is higher). Training wages apply towards an employee's first 90 calendar days of employment.

Virginia Administrative Code does specify certain conditions for employees to qualify for a training wage rate, including protections for trainees. These conditions are as follows:

• Employees receiving training must be for an occupation in which he or she has no previous or related experience
• The employer cannot utilize the employee being paid the training wage in a manner that causes, induces, encourages, or assists any displacement or partial displacement of any currently employed worker, including:
  • Displacing any previous recipient of the training wage
  • Reducing the hours of a currently employed worker
  • Replacing a current or laid-off employee with a trainee
  • In a manner that replaces, supercedes, competes with, or duplicates any approved apprenticeship program
• The occupation for which the employee is receiving training must require a sufficient degree of technical skill to require a learning period; The training cannot be for the purpose of boosting manual dexterity and high production speed in repetitive operations
• Training programs must involve either formal instruction or an on-the-job training period when the trainees have limited responsibilities and are under supervision
• Training programs must describe the purpose and extent of the training period and supervision provided in writing
• The employer must make a good-faith effort to continue the employment of the trainee after the period of the training wage expires
• The employer must hire the employee with the reasonable expectation that there will be employment, paying at or above the effective state minimum wage, for the trainee upon completing a training period
• An employee can only perform one on-the-job or other training program

NOTE: Seasonal and temporary employees do not apply for training wages and must be paid the state's current minimum wage rate.

Virginia Workers With Disabilities

Effective July 1st, 2023, under House Bill 335, Virginia eliminated sub-minimum wage practices. Employees with disabilities must be paid at least the state's minimum wage amount.

Virginia no longer allows businesses to pay a lower minimum wage to disabled employees. However, businesses that had existing sub-minimum wages for disabled workers in place may continue to offer said wage rate until January 1, 2030, to which employers must provide all employees with the state's minimum wage rate.

Virginia Minimum Wage Exemptions

Outside of special minimum wage exceptions, workers exempt from the state's minimum wage include any employee exempt under FLSA classification.

Generally, these exemptions include:

• Executive workers paid on a salary basis
• Administrative workers paid on a salary basis
• Learned and creative professionals paid on a salary basis
• Computer employees
• Outside sales employees

Additionally, Virginia has unique exceptions (with some federal overlap) to the minimum wage for the following individuals:

• Any individual employed as a farm laborer or farm employee
• Any individual engaged in the activities of an educational, charitable, religious, or nonprofit organization where there is no employer-employee relationship or where employees are volunteers
• Golf caddies
• Traveling or outside salesmen working on a commission basis, including taxicab drivers and operators
• Any individual under 18 years of age employed by his or her parent / legal guardian
• Any individual confined in any penal or corrective institution of the Commonwealth or any of its political subdivisions, or admitted to a state hospital or training center operated by the Department of Behavioral Health and Developmental Services
• Any Individual employed by a summer camp for boys, girls, or both
• Any individual under the age of 16, regardless of the employer
• Students participating in a bona fide educational program
• Any individual less than 18 years of age enrolled on a full-time basis in any secondary school, institution of higher education, or trade school, working under 20 hours per week
• Any Individual, regardless of age, enrolled on a full-time basis in any secondary school, institution of higher education, or trade school, AND are in a work-study program or its equivalent at the institution at which he or she is enrolled as a student
• Any individual working as a babysitter for fewer than 10 hours per week
• Any individual participating as an "au pair" childcare provider in accordance with the U.S. Department of State's Exchange Visitor Program
• Any individual employed as a temporary foreign worker, as governed by Title 20 of the Code of Federal Regulations, Part 655

Virginia Meal and Rest Breaks

Virginia does not require employers to give specific meal or rest breaks to employees 18 years of age or older. However, employers that offer employees breaks must adhere to the specific guidelines set forth by the FLSA regarding meal and rest breaks. 

Virginia Minimum Wage Posting Requirements

Businesses must post a summary of the Virginia Minimum Wage Act in an easily accessible and visible place. This can easily be managed through an all-in-one Virginia Labor Law Poster to cover all the required state and federal labor law postings.

Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with state or local laws.

Penalties for Non-Compliance

In accordance with the Virginia Minimum Wage Act, employers violating Virginia wage and hour laws can be subject to the following penalties outlined by the Virginia Department of Labor & Industry (DOLI):

• Back pay for all unpaid wages
• An 8% annual interest penalty on all unpaid wages accrued beginning on the day wages were due
• If requested by the court, reimbursement of attorney fees to the affected employees
• Employers can be punished with a fine of up to $200 per violation

Final Thoughts on Virginia Minimum Wage

Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to a Virginia Payroll Provider. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.  

To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the find a provider tool.