Fri, 05/08/2020
The Commonwealth of Virginia has enacted 22 new pro-worker laws. Among them are a phased increase to Virginia’s minimum wage (from $7.25 to $12.00), the ability to bring a lawsuit for unpaid wages, and an extension of protections to employees wrongly classified as independent contractors.
Increases to Minimum Wage
The originally planned minimum wage increase on Jan. 1, 2021 will be delayed until May 1, 2021, due to an amendment proposed by the Governor responding to the COVID-19 pandemic and its impact on businesses. The initial increase will be followed by increases to $11.00 per hour on January 1, 2022 and to $12.00 per hour on January 1, 2023. The legislation also provides a pathway for the minimum wage to increase to $15.00 per hour effective January 1, 2026; however, for that to happen, the General Assembly would have to reenact the legislation before July 1, 2024.
Creation of Private Rights of Action to Address Employer Not Paying Full Wages
Another new Virginia law allows employees to recover the wages unlawfully withheld by their employers (with eight percent interest), and, when an employer “knowingly” fails to pay full wages, allows affected workers to collect triple the amount of the unpaid wages plus reasonable attorneys’ fees and expenses.
This law allows workers to pursue claims for failure to pay full wages without carrying the burden of the legal expenses associated with recovering the wages they are due (assuming you win or settle).
The Governor signed a related piece of legislation allowing employees to sue under the Fair Labor Standards Act for failure to pay full wages. If the court concludes the employer’s failure to pay wages was “knowing,” the court must award liquidated damages and reasonable attorneys’ fees and costs. If the court finds that the employer’s failure to pay wages was “willful and with intent to defraud the employee,” the court must award the employee triple the amount of the unpaid wages and their attorneys’ fees and costs. The law also includes failure to pay full wages provisions specific to the construction industry.
Both laws regarding failure to pay full wages go into effect on July 1, 2020.
Additional new Virginia laws related to failure of employers to pay full wages increase the power of the Virginia Department of Labor and Industry to investigate such complaints and protect workers who report failure to pay wages or file claims related to failure to pay wages from retaliation.
Limiting Worker Misclassification
Finally, Virginia now has several new laws to address worker misclassification, after a 2012 Commission report found that around 214,000 Virginians were misclassified as independent contractors instead of employees.
The report found that workers misclassified as independent contractors lose critical protections, such as access to workers’ compensation and unemployment benefits, coverage under wage and hour laws, family and medical leave laws, workplace discrimination laws, and occupational safety and health laws. Independent contractors also generally do not receive health insurance or retirement benefits.
The new laws 1) authorize Virginia’s Department of Taxation to oversee investigations into suspected worker misclassification, 2) create a private cause of action for misclassified workers to seek damages, 3) provide protection from retaliation for workers who report misclassification, and 4) create a specific requirement that contractors properly classify their employees.
To speak with an attorney about your wage and hour protections in the Commonwealth of Virginia, email us now at info@mselaborlaw.com or call the number at the top of your screen.
