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Virginia Overtime Wage Act

April 23, 2021 Alert

The state of Virginia signed into law the Virginia Overtime Wage Act, which requires employers to pay one and a half times the employee's regular rate of pay for any hours in excess of 40 hours per work week.

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At-A-Glance

  • The Virginia Overtime Wage Act is effective July 1, 2021
  • The act requires employers to pay one and a half times the employee's regular rate for any hours in excess of 40 per workweek.
  • The regular rate differs for Salaried and Hourly employees.

Introduction

On March 31, 2021, Virginia Governor Ralph Northam signed into law the Virginia Overtime Wage Act, which requires employers to pay one and a half times the employee’s regular rate of pay for any hours in excess of 40 hours per workweek. The act defines the regular rate of pay for both hourly and salary employees.

The act also allows for employees to bring collective action against an employer, consistent with the collective action procedures of the Fair Labor Standards Act. Additionally, employees have three years to bring collective action.

Hourly Employees Regular Rate of Pay

For employees paid on an hourly basis, the regular rate is the hourly rate of pay plus any other non-overtime wages paid or allocated for that workweek, excluding any amounts that are excluded from the regular rate by the federal Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and its implementing regulations, divided by the total number of hours worked in that workweek.

Salary Non-exempt Employees Regular Rate of Pay

For employees paid on a salary or other regular basis, the regular rate is one-fortieth of all wages paid for that workweek.

This differs from the FLSA as it includes all wages, this includes items like wages, commissions, and non-discretionary bonuses.

Next Steps

Please reach out to your account manager if you need assistance with your weighed overtime calculations.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

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.

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