Introduction to employment laws in Virginia
Overview
Understanding and complying with Virginia-specific employment laws is crucial for businesses operating in the state. In this guide, we’ll help you to stay compliant while hiring and manage employees in Virginia.
Employing in Virginia: Key employment laws and practices
Standard work hours
Virginia’s Code and State Employee Handbook outline the laws related to work and overtime hours. Full-time employment in Virginia is classified as working between 30 to 40 hours per week under state law.
Employers are advised to be clear about their definitions of full-time, part-time, contract-based, or self-employed professionals. Clear communication about work hours can help prevent misunderstandings and ensure compliance with labor regulations.
Minimum wage and overtime
As of January 1, 2024, the minimum wage rate in Virginia stands at $12.00 per hour, higher than the standard federal minimum wage of $7.25.
For overtime work exceeding 40 hours per week, non-exempt employees are entitled to a 1.5x rate of their regular pay rate, as mandated by the federal Fair Labor Standards Act (FLSA). The salary threshold for overtime exemption in Virginia is currently $684 per week, in line with the federal minimum.
Insurance and benefits
Employers in Virginia must comply with federal laws regarding insurance and other benefits. This includes providing health insurance under the Affordable Care Act (ACA), contributions to Social Security, Medicare, and Unemployment Insurance.
In terms of additional benefits, it’s common for Virginia employers to offer retirement plans such as 401(k), dental and vision insurance, and other employee assistance programs. While these are not mandated by law, they contribute significantly to employee welfare and job satisfaction.
Benefit | Contribution |
Health insurance | As per ACA requirements |
Virginia mini-COBRA | Required for companies with 2-19 employees |
Social Security tax | 6.20% on income up to $168,000 annually |
Medicare | 1.45% |
Unemployment insurance | 0.1% – 6.2% on max taxable wages of $8,000 |
Workers’ compensation insurance | Required to be carried for businesses with three or more full-time or part-time employees |
Multiplier makes it easy to manage benefits for Virginia employees.
Meal and rest periods
Virginia employment laws do not specifically mandate employers to provide meal or rest breaks to employees who are 16 years old or older. However, federal law under the Fair Labor Standards Act (FLSA) stipulates that if an employer chooses to offer short breaks of five-20 minutes, these must be counted as compensable work hours. Conversely, bona fide meal periods lasting at least 30 minutes are not considered work time.
Virginia law requires a minimum 30-minute break after five consecutive hours of work for minors under 16. This provision highlights the state’s commitment to the welfare of young workers and underscores the importance of employers being aware of distinct regulations for different categories of workers.
Anti-discrimination laws
In Virginia, employers are subject to both federal and state anti-discrimination laws. At the state level, the Virginia Human Rights Act prohibits employment practices that discriminate based on race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age, marital status, or disability. More recently, the Virginia Values Act expanded these protections to include sexual orientation and gender identity.
Federal laws further extend protections against workplace discrimination. These include Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, religion, sex (including pregnancy), and national origin; the Age Discrimination in Employment Act (ADEA), which protects individuals 40 years old or older; the Americans with Disabilities Act (ADA), safeguarding individuals with disabilities; and other federal legislation.
Leave policies
Virginia law does not mandate that employers provide paid vacation, sick leave, or personal time off. However, if an employer chooses to offer these benefits, it must comply with its own established policies or employment contract terms. Employers are encouraged to clearly outline leave policies to avoid potential misunderstandings or conflicts.
The Family and Medical Leave Act (FMLA), a federal law, entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons, including the birth or adoption of a child, a serious health condition, or the need to care for an immediate family member with a serious health condition. In Virginia, FMLA applies to employers with 50 or more employees.
Public holidays are not mandatory paid days off under Virginia law. However, many employers traditionally observe federal holidays. When a holiday falls on a weekend, it is common practice to offer a day off in lieu of the preceding Friday or the following Monday.
Leave type | Description |
Vacation leave | No state law requirement |
Sick leave | No state law requirement |
Parental and maternity leave | Protected under FMLA for eligible employees |
Bereavement leave | No state law requirement |
Jury duty leave | Unpaid leave required by state law |
Witness leave | Required by state law, paid or unpaid, at the discretion of the employer |
Crime victim leave | Required by state law, paid or unpaid, at the discretion of the employer |
Military leave | Protected under federal USERRA law and Virginia state law |
Easily onboard employees in Virginia?
Termination laws
Virginia is an “at-will” employment state, meaning either party may end the employment relationship at any time for any reason, as long as it’s not illegal (e.g., discrimination). The at-will doctrine allows employers considerable flexibility but also requires caution to avoid potential wrongful termination claims.
Severance pay is not required under Virginia law unless stipulated in an employment contract or company policy. However, severance packages, often amounting to a week’s pay for each year of service, are often offered.
In cases of mass layoffs or plant closures, Virginia employers must comply with the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days’ advance notice to affected employees.
Safety and health
Employers in Virginia are obligated to provide a safe and healthy work environment under the Occupational Safety and Health (OSH) Act. The Virginia Occupational Safety and Health (VOSH) program operates under a state plan approved by the U.S. Department of Labor and sets safety regulations for workplaces. Employers must comply with all relevant VOSH standards, maintain records of occupational injuries and illnesses, and report certain incidents within specified timelines.
Industries with higher risk factors, such as construction or manufacturing, may face additional safety regulations. Regular safety audits, employee training programs, and early reporting of hazards can help employers maintain workplace safety and comply with regulatory requirements.
Taxes in Virginia
Both employers and employees have tax obligations under Virginia employment laws. Employers are responsible for withholding federal income tax, Social Security, and Medicare taxes from employees’ wages. Additionally, employers must pay unemployment insurance tax at the state level.
State income tax rates in Virginia vary based on income level, with rates ranging from 2% to 5.75%. Federal income tax rates also vary based on income level and filing status.
| Tax type | Employer contribution | Employee contribution |
| Federal income tax | N/A | Varies |
| State income tax | N/A | 2% – 5.75% |
| Social Security | 6.2% | 6.2% |
| Medicare | 1.45% | 1.45% |
| Unemployment insurance | 0.1% – 6.2% | N/A |
Managing Virginia employees with an Employer of Record (EOR)
The process of hiring and managing employees in Virginia can be complicated due to the various state-specific employment laws and regulations. Staying on top of these laws, which range from payroll contributions to leave policies, is crucial to maintaining a compliant and successful business.
Multiplier’s Employer of Record (EOR) solution simplifies this process by enabling businesses to hire full-time workers in Virginia without having to set up local entities.
Leveraging our Global Payroll software can ensure your team gets paid on time, with all local taxes, contributions, and withholdings handled efficiently.
Book a demo today and see how Multiplier can take the stress out of managing your international workforce.
FAQs
In Virginia, full-time employment is defined as working between 30 and 40 hours per week according to state law. Understanding this definition is essential for determining employee eligibility for certain benefits and protections under Virginia employment laws.
Under the federal Fair Labor Standards Act, non-exempt employees in Virginia are entitled to overtime pay at a rate of 1.5 times their regular pay if they work over 40 hours in a week. However, certain exemptions apply based on job duties and salary levels—the salary threshold for exemption in Virginia aligns with the federal minimum of $684 per week.
Employers in Virginia are required to contribute towards Unemployment Insurance, FICA Social Security, FICA Medicare, and the Federal Unemployment Tax Act (FUTA). The contributions range from 0.13% to 6.23% for Unemployment Insurance and 6.20% for FICA Social Security on income up to 168,000 USD annually.
The current state minimum wage law in Virginia sets the minimum wage at 12.00 USD. Employers are required by law to adhere to this minimum when compensating their employees.
Due to at-will employment laws, either the employer or the employee can terminate the employment relationship without notice in Virginia in most cases. However, if mass dismissals are involved, employers must follow the Worker Adjustment and Retraining Notification Act (WARN Act), which requires a 60-day notice to impacted employees.
