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Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them.
In addition to federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.
Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, employers will need to close their Virginia unemployment and withholding accounts prior to joining the Justworks platform. Linked here are the steps you’ll need to take: State Unemployment Insurance
Recruiting & Hiring Practices
Ban-The-Box
Virginia law prohibits employers who are located in, or employ residents of, Virginia from requiring job applicants to complete job applications that ask about prior criminal arrests, convictions, or charges. Some exceptions exist for positions in specific fields, including law enforcement, education, and health and safety.
Employers and educational institutions are also banned from asking applicants about arrest, charges, or convictions for possession of marijuana.
Virginia: Ban-The-Box Law
Mineral*: Virginia: Marijuana and Ban the Box + Analysis
Wage Theft Law
Virginia’s Wage Theft Law provides employees with a private right of action against their employer related to unpaid wage claims. An employee may file suit individually, jointly with other aggrieved employees, or on behalf of similarly situated employees as a collective action in Virginia state court.
In addition to recovery of all wages owed to the employee, plus 8% pre-judgment interest, the Wage Theft Law permits recovery of liquidated damages in an amount equal to the wages owed plus reasonable attorney’s fees and costs.
The Wage Theft Law also carries potential criminal penalties for violations made willfully and with the intent to defraud including a misdemeanor offense for violations where the amount of wages owed is less than $10,000.00 or a felony offense for violations where the amount is over $10,000.00 or the employer has prior offenses.
Virginia State Law: Payment of Wages
E-Verify
Virginia law requires employers who are state contractors, with more than an average of 50 employees for the previous 12 months and contracting in excess of $50,000 with any agency of the Commonwealth of Virginia to perform work or provide services, to register and participate in the E-Verify program to verify information and work authorization of its newly hired employees performing work pursuant to such public contract.
Virginia State Law: E-Verify Requirements
Mineral*: E-Verify State Requirements
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the varying tests that apply under different federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is an independent contractor or employee in Virginia in the relevant section linked below.
Virginia Employment Commission: IRS 20 Factors and Virginia Exemptions for Employee Classification
Mineral*: Virginia Independent Contractors
Pay Requirements
Minimum Wage & Overtime
Virginia’s minimum wage requirement is higher than the federal minimum wage.
For overtime, most employees must be paid 1.5 times their regular hourly rate for hours worked in excess of 40 per week, subject to some exemptions.
Virginia’s requirements and rules on overtime and minimum wage can be found here:
Mineral*: Virginia Wage Payment
Virginia State Law: Virginia Minimum Wage
Virginia Department of Labor and Industry: Virginia Overtime Wage Act
Pay Parity Laws
Virginia law prohibits employers from discriminating against employees on the basis of sex by paying lower wages to employees of a certain sex than employees of the opposite sex for equal work where the job requires equal skill, effort, responsibility, and are performed under similar working conditions. Exceptions to this law include differences in wages due to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any factor other than sex.
Virginia Law: Equal Pay Irrespective of Sex
Mineral*: Virginia Pay Equity and Transparency
Lactation Accommodation Laws
The Virginia Pregnant Workers Fairness Act requires employers to make reasonable accommodations for lactating workers, including more frequent breaks to express breast milk and access to a private location to do so.
Virginia Department of Health: Virginia Breastfeeding Laws
Mineral*: Virginia Lactation Accommodations
Benefit Requirements
State Retirement Program
RetirePath Virginia is the state of Virginia's program designed to give employees access to a retirement savings plan when their employer does not offer a qualifying employer-sponsored retirement plan. Virginia law requires employers to register for RetirePath if they have 25 or more eligible employees, the employer has been in operation for more than 2-years, and the employer does not offer a qualified, employer-sponsored retirement plan.
You can read more about state retirement programs at the link below.
Harassment & Discrimination
In addition to protections under federal law, Virginia law prohibits discrimination by covered employers, because of an employee’s membership in any protected class, including race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, age (40 or over), marital status, sexual orientation, gender identity, military status, or disability in places of public accommodation.
Virginia State Law: Virginia Human Rights Act
Separation
Final Wage Payment Requirements
In Virginia, the final wages for separating employees should be issued on or before the next regularly scheduled payday.
Virginia State Law: Payment of Wages
Mineral*: Virginia Termination Toolkit
Vacation Payout Requirements
In Virginia, there is no requirement to provide vacation leave to employees. Where an employer has a vacation policy, accrued, unused vacation time need not be paid out to a terminated employee unless the employer’s policy requires it. Therefore, it is important for employers to clearly set forth in writing their policy with respect to vacation time accrual and unused vacation upon termination of employment.
Separation Notice Requirements
Employers must provide a separation notice, “Notice to Workers” (VEC-B-29), to your employee at the time of separation from employment.
Business Closings and Layoffs
The Federal WARN Act imposes certain notices and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. Under Virginia law, businesses with as few as 50 employees may be covered, and are required to provide a written notice to affected workers, the State Rapid Response Coordinator, and the chief elected official of the local government where the employment site is located at least 60-days prior to the anticipated closure or layoff. Virginia employers who may be required to file notice can do so through the state’s Rapid Response Services. For more information, visit the links below.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Virginia Employment Commission: Rapid Response Services
Notes
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.