A. As used in this section:
"Employer" has the same meaning as provided in 29 U.S.C. § 203.
"Wages" includes any remuneration an employer owes to an employee, including hourly wages, minimum wages, piece rate wages, day rates, salaries, overtime wages, legally required prevailing wages, commissions, tips, bonuses, and damages available due to the misclassification of an employee in violation of § 40.1-28.7:7 .
B. All employers operating a business or engaging an individual to perform domestic service shall establish regular pay periods and rates of pay for employees except executive personnel. All such employers shall pay salaried employees at least once each month and employees paid on an hourly rate at least once every two weeks or twice in each month, except that (i) a student who is currently enrolled in a work-study program or its equivalent administered by any secondary school, institution of higher education, or trade school, and (ii) employees whose weekly wages total more than 150 percent of the average weekly wage of the Commonwealth as defined in § 65.2-500 , upon agreement by each affected employee, may be paid once each month if the institution or employer so chooses. Upon termination of employment an employee shall be paid all wages due him for work performed prior thereto; such payment shall be made on or before the date on which he would have been paid for such work had his employment not been terminated.
C. Payment of wages shall be (i) in lawful money of the United States, (ii) by check payable at face value upon demand in lawful money of the United States, (iii) by electronic automated fund transfer in lawful money of the United States into an account in the name of the employee at a financial institution designated by the employee, or (iv) by credit to a prepaid debit card or card account from which the employee is able to withdraw or transfer funds with full written disclosure by the employer of any applicable fees and affirmative consent thereto by the employee. However, an employer that elects not to pay wages in accordance with clause (i) or (ii) to an employee who is hired after January 1, 2010, shall be permitted to pay wages by credit to a prepaid debit card or card account in accordance with clause (iv), even though such employee has not affirmatively consented thereto, if the employee fails to designate an account at a financial institution in accordance with clause (iii) and the employer arranges for such card or card account to be issued through a network system through which the employee shall have the ability to make at least one free withdrawal or transfer per pay period, which withdrawal may be for any sum in such card or card account as the employee may elect, using such card or card account at financial institutions participating in such network system.
D. No employer shall withhold any part of the wages of any employee except for payroll, wage or withholding taxes or in accordance with law, without the written and signed authorization of the employee. On each regular pay date, each employer, other than an employer engaged in agricultural employment including agribusiness and forestry, shall provide to each employee a written statement, by a paystub or online accounting, that shows the name and address of the employer; the number of hours worked during the pay period if the employee is paid on the basis of (i) the number of hours worked or (ii) a salary that is less than the standard salary level adopted by regulation of the U.S. Department of Labor pursuant to § 13(a)(1) of the federal Fair Labor Standards Act, 29 U.S.C. § 213(a)(1), as amended, establishing an exemption from the Act's overtime premium pay requirements; the rate of pay; the gross wages earned by the employee during the pay period; and the amount and purpose of any deductions therefrom. The paystub or online accounting shall include sufficient information to enable the employee to determine how the gross and net pay were calculated. An employer shall keep such paystubs or online accounting for at least three years following the date of the work performed. An employer engaged in agricultural employment including agribusiness and forestry, upon request of its employee, shall furnish the employee a written statement of the gross wages earned by the employee during any pay period and the amount and purpose of any deductions therefrom.
E. No employer shall require any employee, except executive personnel, to sign any contract or agreement which provides for the forfeiture of the employee's wages for time worked as a condition of employment or the continuance therein, except as otherwise provided by law.
F. An employer who willfully or with intent to defraud fails or refuses to pay wages, unless the failure to pay was because of a bona fide dispute between the employer and its employee:
1. To an employee or employees is guilty of a Class 1 misdemeanor if the value of the wages earned and not paid by the employer is less than $10,000; and
2. To an employee or employees is guilty of a Class 6 felony (i) if the value of the wages earned and not paid is $10,000 or more or (ii) regardless of the value of the wages earned and not paid, if the conviction is a second or subsequent conviction under this section or § 40.1-29.3 .
For purposes of this section, the determination as to the "value of the wages earned" shall be made by combining all wages the employer failed or refused to pay.
G. The Commissioner may initiate an investigation upon the receipt of a complaint from an employee or an interested third party, or at the Commissioner's discretion. The Commissioner shall not disclose a complainant's or witness's identity unless the complainant or witness consents to such disclosure. The Commissioner may commence administrative proceedings or refer the matter to the Attorney General, who may bring a civil action to enforce compliance with this section, and upon the reasonable and good-faith belief of wage violations to remedy the failure to pay wages, including violations of this section, § 2.2-4321.3 or 40.1-28.7:7 , the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.), or § 40.1-29.2 or 40.1-29.3 . The Commissioner may seek and collect any wages unlawfully withheld from any employee and all damages and penalties available under subsection K. Such wages and damages shall be paid as restitution to any affected employee entitled thereto, and such penalties may be paid to any affected employee or the Commonwealth. The Commissioner may require an employer or employee to submit a statement or report in writing under oath as to all necessary information, examine under oath any person alleged to have participated in or have knowledge relevant to the investigation, and issue subpoenas. Following the issuance of a final order by the Commissioner or a court, the Commissioner or the Attorney General may engage private counsel, approved by the Attorney General, to collect any moneys owed to the employee or the Commonwealth. Upon entry of a final order of the Commissioner, or upon entry of a judgment, against the employer, the Commissioner or the court shall assess reasonable attorney fees.
H. In addition to being subject to any other penalty provided by the provisions of this section, any employer who fails to make payment of wages shall be liable for the payment of all wages due, and an additional equal amount as liquidated damages, plus interest at an annual rate of eight percent accruing from the date the wages were due.
I. Any employer who knowingly fails to make payment of wages shall be subject to a civil penalty not to exceed $1,000 for each violation. The Commissioner shall notify any employer that the Commissioner alleges has violated any provision of this section by certified mail. Such notice shall contain a description of the alleged violation. Within 15 days of receipt of notice of the alleged violation, the employer may request an informal conference regarding such violation with the Commissioner. In determining the amount of any penalty to be imposed, the Commissioner shall consider the size of the business of the employer charged and the gravity of the violation. The decision of the Commissioner shall be final. Civil penalties owed under this section shall be paid to the Commissioner for deposit into the general fund of the State Treasurer. The Commissioner shall prescribe procedures for the payment of proposed assessments of penalties that are not contested by employers. Such procedures shall include provisions for an employer to consent to abatement of the alleged violation and pay a proposed penalty or a negotiated sum in lieu of such penalty without admission of any civil liability arising from such alleged violation.
J. Final orders of the Commissioner, the general district courts, or the circuit courts may be recorded, enforced, and satisfied as orders or decrees of a circuit court upon certification of such orders by the Commissioner or the court as appropriate.
K. In addition to any civil or criminal penalty provided by this section, and without regard to any exhaustion of alternative administrative remedies provided for in this section, if an employer fails to pay wages to an employee in accordance with this section or violates any provision of § 2.2-4321.3 or 40.1-28.7:7 , the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.), or § 40.1-29.2 or 40.1-29.3 , the employee may bring an action, individually, jointly, with other aggrieved employees, or on behalf of similarly situated employees as a collective action consistent with the collective action procedures of the Fair Labor Standards Act, 29 U.S.C. § 216(b), against the employer in a court of competent jurisdiction to recover payment of the wages, and the court shall award the wages owed, an additional equal amount as liquidated damages, plus prejudgment interest thereon as provided in subsection H, and reasonable attorney fees and costs. If the court finds that the employer knowingly failed to pay wages to an employee, the court shall award the employee an amount equal to triple the amount of wages due and reasonable attorney fees and costs.
L. As used in this section, a person acts "knowingly" if the person, with respect to information, (i) has actual knowledge of the information, (ii) acts in deliberate ignorance of the truth or falsity of the information, or (iii) acts in reckless disregard of the truth or falsity of the information. Establishing that a person acted knowingly shall not require proof of specific intent to defraud.
M. An action under this section shall be commenced within three years after the cause of action accrued. The period for filing is tolled upon the filing of an administrative action under subsection G until the employee has been informed that the action has been resolved or until the employee has withdrawn the complaint, whichever is sooner.
N. Upon referral from the Commissioner, the Attorney General may investigate and bring a civil action in a court of competent jurisdiction against an employer for a violation of this section, § 2.2-4321.3 or 40.1-28.7:7 , the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.), or § 40.1-29.2 or 40.1-29.3 for restitution or for injunctive, compensatory, or other authorized relief for any affected employees or for the public interest. The Attorney General may require an employer or employee to submit a statement or report in writing under oath as to all necessary information, examine under oath any person alleged to have participated in or have knowledge of the violation, and issue subpoenas. Upon prevailing in a civil action under this section, the Attorney General shall be entitled to reasonable attorney fees and costs, statutory penalties equal to any administrative penalties provided by law, and, on behalf of affected employees, the payment of wages unlawfully withheld, additional damages to the same extent as would be available if the employee brought the civil action, and equitable relief as may be appropriate.
O. In no civil action brought under this section shall an employee be awarded an amount already recovered on their behalf by the Attorney General or the Commissioner for the same violation. In no administrative action brought under this section shall the Commissioner be awarded an amount already recovered by an employee or the Attorney General for the same violation. In no civil action brought under this section shall the Attorney General recover an amount already recovered by the Commissioner or an employee for the same violation.
P. In any action to recover unpaid wages commenced on or after July 1, 2026, if the employer shows to the satisfaction of the court or the Commissioner that the act or omission giving rise to such action was in good faith and that the employer had reasonable grounds for believing that his act or omission was not in violation of this article, the court or the Commissioner shall not award any additional damages or impose any additional penalties. An employer shall not claim the good faith defense unless such employer cures the violation within 14 days of being notified of the violation by paying all wages unlawfully withheld.
Code 1950, § 40-24; 1962, c. 66; 1966, c. 88; 1968, c. 262; 1970, c. 321; 1972, c. 848; 1977, c. 308; 1979, c. 50; 1989, c. 583; 1991, c. 499; 1993, c. 600; 2002, c. 321 ; 2003, c. 638 ; 2004, c. 358 ; 2005, cc. 595 , 851 ; 2009, c. 728 ; 2016, c. 593 ; 2019, cc. 836 , 845 ; 2020, cc. 202 , 868 , 1038 ; 2021, Sp. Sess. I, cc. 445 , 513 ; 2022, cc. 461 , 462 ; 2026, c. 1040 .
