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Virginia’s Legislative Update Affecting Employers

Every winter, Virginia’s General Assembly gathers in Richmond to pass new laws affecting Virginians and Virginia businesses. Three of the most recent and consequential changes affecting employers are changes to Virginia’s minimum wage, paid sick leave to certain employees, and prohibition on disciplining employees for medicinal use of cannabis oil.

First, Virginia increased the minimum wage, effective May 1, 2021. The new minimum wage[1] is tied to a tier system, provided the Federal minimum wage is never increased. If the Federal minimum wage ever exceeds the tiered system in Virginia, Virginia employers will follow the Federal minimum wage. Otherwise, from May 1, 2021, until January 1, 2022, the minimum wage in Virginia is $9.50 per hour. On January 1, 2022, the minimum wage increases to $11.00 per hour until January 1, 2023. From January 1, 2023 until January 1, 2025, the minimum wage in Virginia is set at $12.00 per hour. After January 1, 2025, the minimum wage is dependent on the General Assembly and in the event they do not act prior to July 1, 2024, the Commissioner of Labor and Industry shall establish the adjusted state hourly minimum wage.

Second, Virginia, in a move towards full paid sick leave,[2] is now requiring certain employers to provide paid sick leave. Home health workers, or individuals who provide personal care, respite, or companion services to an individual who receives consumer-directed services under the state plan for medical assistance services. If you employ a home health worker, those employees shall accrue a minimum of one hour of paid sick leave for every 30 hours worked.

Lastly, Virginia is moving towards a regulated form of recreational marijuana use. Beginning July 1, 2021, if an employee provides a valid written certification for use of cannabis oil, issued by a practitioner, the employer is prohibited from discharging, disciplining, or discriminating against an employee for their lawful use of cannabis oil. While an employer shall not discharge, discipline, or discriminate, the employer is not restricted from taking adverse employment actions for impairment or use during working hours.[3]

In addition to these three new laws, Virginia employers should remember that in 2020 Virginia clamped down on misclassification of employees as independent contractors. WTP’s July 2020 Newsletter details those changes.

Overall, employers in Virginia are experiencing changing winds. For any questions regarding recent changes in Virginia’s employment laws, please contact Robert Drewry and Betsy Davis.