- Effective July 1, 2022
- Repeals sections of the Virginia Overtime Wage Act that went into effect in 2021.
- Reverts overtime calculations to using the Fair Labor Standards Act (FLSA) standards.
- Clarifies Overtime for air carrier employees.
Virginia Senate Bill 631 was signed by the Governor on April 11, 2022. S631 Fair Labor Standards Act replaced the current provisions of the Virginia Overtime Wage Act (VOWA), passed earlier in 2021, with the provisions under the Fair Labor Standards Act (FLSA). This amends section 40.1-29-.2 of the VOWA removing the Overtime provisions under the VOWA for hourly, and salaried employees. This is effective July 1, 2022.
Additionally, the act defines overtime for air carrier employees. These employees must be paid one and a half times the regular rate of pay for any hours worked in excess of 40 hours. The employees regular rate is the employees hourly rate of pay plus any other non-overtime wages for the workweek, (excluding amounts that are excluded by the FLSA 29 U.S.C Section 201) divided by the total number of hours worked that work week. Failure to pay overtime to these employees will result in wages owed, liquidated damages, and reasonable attorney fee’s and costs.
A working group will be assembled by the Virginia Secretary of Labor to review overtime issues. The group will include representatives from the business, labor, legal sector, and state and local government. The group will present their findings and any recommendations to the Governor by November 1, 2022.
For more information on Virginia's wage and payroll tax laws, check out our Virginia Wage and Payroll Tax Facts page.
Please reach out to your account manager if you need assistance with adjusting your weighed overtime calculations.
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This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.