Wage Payment Law Summaries
Virginia, Wage Payment Law Summaries
Virginia's wage payment law is located in the Code of Virginia at Title 40.1, Chapter 3, Article 2. The full text of this law is available beginning at Wages-Hours ¶48-46,001 .
COVERAGE
Virginia's wage payment law covers employers operating a business (Sec. 40.1-29, as amended by Ch. 638 (H. 1751), L. 2002).
WHAT THE EMPLOYER MUST DO
Form of payment.- Payment of wages or salaries must be in lawful money of the United States or by check payable at face value upon demand in lawful money of the United States, by electronic automated fund transfer in lawful money of the United States into an account in the name of the employee at a financial institution designated by the employee, or by credit to a prepaid debit card or card account from which the employee is able to withdraw or transfer funds with full written disclosure by the employer of any applicable fees and affirmative consent thereto by the employee (Sec. 40.1-29(B), as amended by Ch. 728 (S. 1264), L. 2008, effective July 1, 2009).
However, an employer that elects not to pay wages or salaries in accordance with the paragraph just above to an employee who is hired after January 1, 2010, shall be permitted to pay wages or salaries by credit to a prepaid debit card or card account, even though such employee has not affirmatively consented thereto, if the employee fails to designate an account at a financial institution and the employer arranges for such card or card account to be issued through a network system through which the employee shall have the ability to make at least one free withdrawal or transfer per pay period, which withdrawal may be for any sum in such card or card account as the employee may elect, using such card or card account at financial institutions participating in such network system (Sec. 40.1-29(B), as amended by Ch. 728 (S. 1264), L. 2008, enacted March 30, 2009).
Frequency of payment.- All employers operating a business must establish regular pay periods and rates of pay for employees except executive personnel. All employers must pay salaried employees at least once each month and employees paid on an hourly rate at least once every two weeks or twice in each month, except that (1) a student who is currently enrolled in a work-study program or its equivalent administered by any secondary school, institution of higher education or trade school, and (2) employees whose weekly wages total more than 150 percent of the state average weekly wage, upon agreement by each affected employee, may be paid once each month if the institution or employer so chooses (Sec. 40.1-29(A)(1)).
Payment upon discharge.- Upon termination of employment, an employee must be paid all wages or salaries due him or her for work performed prior thereto; payment must be made on or before the date on which he or she would have been paid for work had the employment not been terminated (Sec. 40.1-29(A)(1)).
Payment when employee quits.- Upon termination of employment, an employee must be paid all wages or salaries due him or her for work performed prior thereto; payment must be made on or before the date on which he or she would have been paid for work had the employment not been terminated (Sec. 40.1-29(A)(1)).
Direct deposit.- Wages or salaries may be paid by electronic automated fund transfer in lawful money of the United States into an account in the name of the employee at a financial institution designated by the employee (Sec. 40.1-29(B), as amended by Ch. 728 (S. 1264), L. 2008, effective July 1, 2009).
Deductions from wages.- No employer may withhold any part of the wages or salaries of any employee except for payroll, wage or withholding taxes or in accordance with law, without the written and signed authorization of the employee (Sec. 40.1-29(C)).
Wage statements.- An employer, upon request of his or her employee, must furnish the latter a written statement of the gross wages earned by the employee during any pay period and the amount and purpose of any deductions therefrom (Sec. 40.1-29(C)).
Forfeiture of wages.- No employer may require any employee, except executive personnel, to sign any contract or agreement that provides for the forfeiture of the employee's wages for time worked as a condition of employment or the continuance, except as otherwise provided by law (Sec. 40.1-29(D)).
DEADLINES
Payment upon discharge.- Upon termination of employment, an employee must be paid all wages or salaries due him or her for work performed prior thereto; payment must be made on or before the date on which he or she would have been paid for work had the employment not been terminated (Sec. 40.1-29(A)(1)).
Payment when employee quits.- Upon termination of employment, an employee must be paid all wages or salaries due him or her for work performed prior thereto; payment must be made on or before the date on which he or she would have been paid for work had the employment not been terminated (Sec. 40.1-29(A)(1)).
ENFORCEMENT
Within 15 days of receipt of notice from the Commissioner of Labor and Industry of an alleged violation of Virginia's wage payment law, the employer may request an informal conference regarding the violation with the commissioner. The decision of the commissioner is final (Sec. 40.1-29(A)(2), as amended by Ch. 595 (H. 2638), L. 2004, effective July 1, 2005).
Assignment of claims.- The Commissioner of Labor and Industry may require a written complaint of a violation of Virginia's wage payment law and, with the written and signed consent of an employee, may institute proceedings on behalf of an employee to enforce compliance with the law, and to collect any moneys unlawfully withheld from the employee that must be paid to the employee entitled thereto. In addition, following the issuance of a final order by the commissioner or a court, the commissioner may engage private counsel, approved by the Attorney General, to collect any moneys owed to the employee or the Commonwealth. Upon entry of a final order of the commissioner, or upon entry of a judgment, against the employer, the commissioner or the court will assess attorney's fees of one-third of the amount set forth in the final order or judgment (Sec. 40.1-29(F)).
WHO TO CONTACT
Contact the Commissioner of Labor and Industry at the Powers-Taylor Building, 13 S. 13th Street, Richmond, VA 23219. Telephone: (804) 786-2377. Fax: (804) 371-6524.
PENALTIES
An employer who willfully and with intent to defraud fails or refuses to pay wages in accordance with this section is guilty of a Class 1 misdemeanor if the value of the wages earned and not paid by the employer is less than $10,000, and is guilty of a Class 6 felony if the value of the wages earned and not paid is $10,000 or more or, regardless of the value of the wages earned and not paid, if the conviction is a second or subsequent conviction under this section (Sec. 40.1-29(E), as amended by Ch. 595 (H. 2638), L. 2004, effective July 1, 2005).
Any employer who knowingly fails to make payment of wages in accordance with Virginia's wage payment law is subject to a civil penalty not to exceed $1,000 for each violation (Sec. 40.1-29(A)(2), as amended by Ch. 595 (H. 2638), L. 2004, effective July 1, 2005).
In addition to being subject to any other penalty provided by Virginia's wage payment law, any employer who fails to make payment of wages in accordance with Sec. 40.1-29(A) is liable for the payment of all wages due, plus interest at an annual rate of eight percent accruing from the date the wages were due (Sec. 40.1-29(G), as amended by Ch. 595 (H. 2638), L. 2004, effective July 1, 2005).
Payment of wages with bad checks.- Any person who shall make, draw, or utter, or deliver any check, draft, or order for the payment of money, upon any bank, banking institution, trust company or other depository on behalf of any business firm or corporation, for the purpose of paying wages to any employee of such firm or corporation, or for the purpose of paying for any labor performed by any person for such firm or corporation, knowing, at the time of such making, drawing, uttering or delivering, that the account upon which such check, draft or order is drawn has not sufficient funds, or credit with, such bank, banking institution, trust company or other depository, for the payment of such check, draft or order, although no express representation is made in reference thereto, shall be guilty of a Class 1 misdemeanor; except that if this check, draft, or order has a represented value of $200 or more, such person shall be guilty of a Class 6 felony. In addition to the criminal penalty, a person shall be personally liable in any civil action brought upon such check, draft or order (Sec. 18.2-182, as amended by Ch. 598 (H. 2674), L. 2004, effective July 1, 2005).
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