Labor & Employment (Minimum Wage)

Transportation network companies; minimum compensation; civil penalty. Establishes minimum compensation rates for TNC partners. The bill also prohibits gratuities from passengers from being included in TNC partner compensation calculations, authorizes TNC partners to collect gratuity in cash or electronically, and prohibits transportation network companies from limiting the amount that can be paid as gratuity through such companies' digital platforms. The bill requires the Department of Motor Vehicles (DMV) to establish a process for reporting violations and to investigate claims. The bill authorizes enforcement by civil action or by civil penalties assessed by the DMV Commissioner.

Transportation network companies; minimum compensation; civil penalty. Establishes minimum compensation rates for TNC partners. The bill also prohibits gratuities from passengers from being included in TNC partner compensation calculations, authorizes TNC partners to collect gratuity in cash or electronically, and prohibits transportation network companies from limiting the amount that can be paid as gratuity through such companies' digital platforms. The bill requires the Department of Motor Vehicles (DMV) to establish a process for reporting violations and to investigate claims. The bill authorizes enforcement by civil action or by civil penalties assessed by the DMV Commissioner.

Virginia Minimum Wage Act; enforcement; penalties. Provides that an employer that violates provisions relating to minimum wage is liable to the employee for the applicable remedies, damages, penalties, and other relief available in a proceeding brought pursuant to the civil action provisions currently available for the nonpayment of wages. Such provisions currently available provide that an employee may bring an action in a court of competent jurisdiction to recover payment of the wages, and the court is required to award the wages owed, an additional equal amount as liquidated damages, plus prejudgment interest thereon, and reasonable attorney fees and costs. Under current law, if the court finds that the employer knowingly failed to pay wages to an employee, the court is required to award the employee an amount equal to triple the amount of wages due and reasonable attorney fees and costs. The bill provides that criminal and civil penalties currently applicable to the nonpayment of wages shall apply to an employer that violates the Virginia Minimum Wage Act.

Wage garnishment; state tax debt. Provides that the maximum part of the aggregate disposable earnings of an individual for any workweek that is subject to garnishment to collect delinquent taxes and charges owed to the state government shall not exceed the lesser of (i) 25 percent of such individual's disposable earnings for that week or (ii) the amount by which such individual's disposable earnings exceed 40 times the federal or Virginia minimum wage, whichever is greater. The bill also directs the Department of Taxation to recognize Currently Not Collectible status granted by the Internal Revenue Service and to offer taxpayers with such status a similar Virginia status with comparable protections from collection activities. The bill contains technical amendments and has a delayed effective date of July 1, 2027.

Economic development incentives; wage requirements. Requires companies to pay an average wage for the jobs eligible for assistance under the component programs of the Virginia Jobs Investment Program that is no less than the prevailing average wage, defined in the bill, or, in the case of an economically distressed locality, defined in the bill, no less than 85 percent of the prevailing average wage. Under current law, to be eligible for the component programs, companies must pay a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, whichever is higher, and in areas that have an unemployment rate of 1.5 times the statewide average unemployment rate, the wage rate minimum may be waived. The bill also authorizes the payment of Virginia Investment Performance Grants if the average wage paid by the eligible manufacturer or research and development service, excluding fringe benefits, is no less than 85 percent of the prevailing average wage in localities with either (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year or (ii) a poverty rate for the most recent calendar year for which such data is available that exceeds the statewide average poverty rate for that year. Under current law, such authorization is limited to those localities meeting both the unemployment rate and poverty rate thresholds.

Unemployment benefits; increase weekly benefit amount. Provides that, for unemployment compensation claims effective on or after July 1, 2026, an eligible individual's weekly benefit amount shall be $48 higher than the current weekly benefit amount, as denoted in the table in the printed bill. This bill is identical to SB 759.

Prevailing wage rate for public works contracts; civil penalties. Provides that the prevailing wage rate required to be paid under certain contracts for public works shall not be less than the applicable prevailing wage rate determined by the U.S. Secretary of Labor under federal law. The bill subjects any contractor or subcontractor who fails to pay the prevailing wage rate for public works contracts as required by existing law to a civil penalty of $500 for each day on which such underpayment occurs and disqualifies such contractor or subcontractor from bidding on public contracts until three years after the final date on which such underpayment occurs. The bill revises the requirements for a contractor or subcontractor to submit certain payroll information to the Department of Labor and Industry and creates certain civil penalties for first and second or subsequent failures to meet such requirements.

Economic development incentives; wage requirements. Requires companies to pay an average wage for the jobs eligible for assistance under the component programs of the Virginia Jobs Investment Program that is no less than the prevailing average wage, defined in the bill, or, in the case of an economically distressed locality, defined in the bill, no less than 85 percent of the prevailing average wage. Under current law, to be eligible for the component programs, companies must pay a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, whichever is higher, and in areas that have an unemployment rate of 1.5 times the statewide average unemployment rate, the wage rate minimum may be waived.The bill also authorizes the payment of Virginia Investment Performance Grants if the average wage paid by the eligible manufacturer or research and development service, excluding fringe benefits, is no less than 85 percent of the prevailing average wage in localities with either (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year or (ii) a poverty rate for the most recent calendar year for which such data is available that exceeds the statewide average poverty rate for that year. Under current law, such authorization is limited to those localities meeting both the unemployment rate and poverty rate thresholds.

Labor and employment; payment of wages. Provides that for purposes of requirements under existing law related to the payment of wages by employers, "wages" means all remuneration paid, or that should have been paid, for personal services, including salaries, commissions, bonuses, tips, back pay, dismissal pay, severance pay, and any other payments made by an employer to an employee during his employment and thereafter, and the cash value of all remuneration payable in any medium other than cash. The bill is intended to reverse Groundworks Operations, LLC v. Campbell, No. 241092 (Va. Dec. 30, 2025).

Employee protections; wage and hour, health and safety, and mining safety provisions; federal rules. Requires that, if a federal wage or hour law, federal occupational health and safety law, or federal mine safety law is repealed, revoked, amended, or reinterpreted in any manner that results in the federal protections becoming less stringent or effective, the Commissioner, the Safety and Health Codes Board, or the Department of Energy, respectively, shall promulgate regulations that incorporate the federal law as it existed prior to being repealed, revoked, amended, or newly interpreted.