Articles

Client Alert: Amended Virginia Wage Payment Act

Date: June 26, 2020
By: Betsy Davis and Wesley R. Morgan*

On March 10, 2020, Governor Ralph Northam signed into law an amendment to the Virginia Wage Payment Act (“WPA”) passed by the Virginia General Assembly, which will go into effect on July 1, 2020.

The current WPA requires employers to pay salaried employees at least once a month and to pay hourly employees at least once every two weeks or twice a month. The WPA also prohibits employers from withholding any employee’s wages or salary except for payroll, wage, or withholding taxes. On each regular pay day, the employer must provide each employee a written statement (either a paystub or online accounting) that shows the:
  1. Name and address of the employer;
  2. Number of hours worked during the pay period;
  3. Rate of pay;
  4. Gross wages earned by the employee during the pay period; and
  5. Amount and purpose of any deductions.
The General Assembly amended the written statement requirement to alter the “number of hours worked” statement requirement and add an additional requirement. Starting July 1, 2020, employers must now:
  1. Provide the number of hours worked during the pay period in the written statement if the employee is paid on the basis of hours worked or paid on the basis of a salary less than the standard salary level that exempts overtime premium payment requirements according to US Department of Labor regulations; and
  2. Provide in the written statement sufficient information for an employee to determine how the gross and net pay were calculated.
Prior to the amendment, only the Virginia Department of Labor and Industry could bring suit for alleged violations.  The statute now contains a private right of action for employees and mandates that prevailing employees is entitled to:
  1. Liquidated damages (double damages for all violations and treble damages for knowing violations);
  2. Prejudgment interest; and
  3. Reasonable attorneys’ fees and costs.
Employers should review and update their payroll practices and handbook policies to ensure compliance.

For more information or questions regarding the amended Virginia Wage Payment Act, please contact a member of our Labor & Employment Practice.

*Summer Associate, 2020
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.