We would like to issue a correction to previously reported upcoming changes. The Virginia Minimum Wage bills (HB 1and SB 1) were vetoed by the Governor. This means that the required re-enactment for further increases was not met, and therefore the minimum wage will remain at $12 an hour until January 1, 2027, unless new legislation passes to create an increase to the minimum wage prior to that date. As of January 1, 2027 the minimum wage will be the adjusted state hourly minimum wage based on the CPI-U. The Code of Virginia states:
D. From January 1, 2023, until January 1, 2025, every employer shall pay to each of its employees wages at a rate not less than the greater of (i) $12.00 per hour or (ii) the federal minimum wage.
E. From and after January 1, 2027, every employer shall pay to each of his employees wages at a rate not less than the greater of (i) the adjusted state hourly minimum wage or (ii) the federal minimum wage.
F. By October 1, 2026, and annually thereafter, the Commissioner shall establish the adjusted state hourly minimum wage that shall be in effect during the 12-month period commencing on the following January 1. The Commissioner shall set the adjusted state hourly minimum wage at the sum of (i) the amount of the state hourly minimum wage rate that is in effect on the date such adjustment is made and (ii) a percentage of the amount described in clause (i) that is equal to the percentage by which the United States Average Consumer Price Index for all items, all urban consumers (CPI-U), as published by the Bureau of Labor Statistics of the U.S. Department of Labor, or a successor index as calculated by the U.S. Department of Labor, has increased during the most recent calendar year for which such information is available. The amount of each annual adjustment shall not be less than zero.