As of 2026, Virginia's minimum wage is higher than the federal floor. The federal minimum under the Fair Labor Standards Act (FLSA) has been frozen at $7.25 per hour since 2009, but the Virginia Minimum Wage Act sets a state rate well above that. Virginia's minimum was $12.00 per hour in 2023 and $12.41 per hour effective January 1, 2025, and it now adjusts upward each January 1 based on inflation (the Consumer Price Index). Because the figure changes every year, you should treat any rate you read as a starting point and confirm the exact current number with the Virginia Department of Labor and Industry before relying on it for payroll, a paycheck dispute, or a wage claim.
When a state minimum wage is higher than the federal minimum, the higher rate controls. That means almost every covered Virginia worker is entitled to the state rate, not the $7.25 federal number. The only time the federal rate would matter is for narrow categories of workers who are exempt from Virginia's law but still covered by the FLSA.
Virginia's Minimum Wage and How It Got Here
In 2020 the General Assembly passed a law to raise Virginia's minimum wage in steps. The scheduled increases were:
$9.50 per hour effective May 1, 2021
$11.00 per hour effective January 1, 2022
$12.00 per hour effective January 1, 2023
The 2020 law also contemplated further jumps to $13.50 and then $15.00 per hour, but those later increases required the General Assembly to vote again (re-enact them) by July 1, 2024. That re-enactment did not happen. As a result, instead of the $13.50 and $15.00 figures, Virginia's minimum wage shifted to annual inflation adjustments. The rate rose to $12.41 per hour effective January 1, 2025, and it is recalculated each year using the Consumer Price Index, with the new rate published in advance and taking effect the following January 1.
This is why pinning down the "current" Virginia minimum wage in writing is tricky: the number ticks up annually. The 2026 rate was set by applying the CPI adjustment to the 2025 figure, so it is somewhat above $12.41. Rather than quote a number that may be slightly off, the safest move is to verify the exact 2026 rate directly with the state labor agency, which publishes it on its website and in workplace posters.
Tipped Employees: Cash Wage and the Tip Credit
Virginia allows employers of tipped workers to pay a lower direct cash wage and count a portion of the employee's tips toward the minimum wage. This is called a "tip credit," and Virginia's framework tracks federal law.
Under the FLSA, a tipped employee is someone who customarily and regularly receives more than $30 a month in tips. For those workers, an employer may pay a direct cash wage as low as $2.13 per hour and take a tip credit for the rest, as long as the worker's cash wage plus tips equals at least the full applicable minimum wage. Virginia's Minimum Wage Act incorporates this approach: the maximum tip credit an employer may claim is the difference between the $2.13 cash wage and the full Virginia minimum wage.
The critical protection is the make-up requirement. If a tipped employee's cash wage plus actual tips does not add up to at least the full Virginia minimum wage for the hours worked, the employer must make up the shortfall. The tip credit is never allowed to push a worker's effective pay below the state minimum. Tips also belong to the employee; an employer cannot keep them, although valid tip pools shared among employees who customarily receive tips are generally permitted.
Because Virginia's full minimum wage is higher than the federal minimum, the tip credit a Virginia employer can take is larger than under federal law, but the floor the worker must actually receive is also higher. Always measure tipped pay against the current Virginia minimum, not the $7.25 federal figure.
Scheduled Increases and Inflation Indexing
Going forward, Virginia's minimum wage is tied to inflation rather than a fixed legislative schedule. Each year the Commissioner of Labor and Industry calculates an adjusted rate based on the change in the Consumer Price Index, announces it before October 1, and the new rate takes effect the following January 1. Practically, this means:
The rate will generally rise a modest amount each year rather than in large legislated jumps.
Employers should re-check the rate every fall so payroll is correct on January 1.
Workers should not assume last year's number still applies in a new calendar year.
The General Assembly can always pass new legislation to change this structure, so the indexing approach reflects current law as of 2026 and is itself subject to change.
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City and County Minimum Wages
Virginia does not have local minimum wages. Virginia is a "Dillon's Rule" state, meaning local governments have only the powers the General Assembly expressly grants them, and the state has not authorized cities or counties to set their own minimum wage above the statewide figure. As a result, the same Virginia minimum wage applies in Northern Virginia, Richmond, Hampton Roads, and rural counties alike. Workers in higher-cost areas like Arlington or Alexandria are covered by the state rate, not a separate local rate. This is different from states such as Maryland or California, where some counties and cities set their own higher minimums.
Who Is Covered and Common Exemptions
Most employees in Virginia are covered by the state minimum wage, but the Virginia Minimum Wage Act contains exemptions. These have historically included categories such as certain agricultural and farm workers, some workers paid on a commission or piece-rate basis, certain student and trainee arrangements, individuals who are family members of the employer, and some workers covered by separate federal wage rules. Exemption rules are detailed and have been amended in recent years, so a worker who believes an exemption is being misapplied should check the current statute or ask the state labor agency rather than assume the exemption is valid.
Note that overtime is a separate issue. Federal law generally requires time-and-a-half for hours over 40 in a workweek for non-exempt employees, and Virginia overtime rules now largely follow the FLSA standard. Minimum wage governs the base hourly floor; overtime governs the premium for long weeks.
How to Enforce Your Right to the Minimum Wage
If you are paid less than Virginia's minimum wage, you have options:
Document everything. Keep pay stubs, time records, tip records, and schedules. For tipped work, track your actual tips so you can show whether cash wage plus tips met the minimum.
Raise it with your employer in writing. Sometimes underpayment is a payroll error that gets corrected once flagged.
File a wage complaint with the Virginia Department of Labor and Industry. The agency administers the Virginia Minimum Wage Act and can investigate underpayment.
Consider a private claim. Virginia law allows employees to recover unpaid wages, and in some cases additional damages and attorney's fees, through a civil action. An employment attorney can advise on deadlines and the value of a claim.
Retaliation against a worker for asserting wage rights is prohibited. If you are fired, demoted, or punished for raising a minimum-wage concern, note the timing and keep records, because that may give rise to a separate retaliation claim.
Where to Confirm the Current Rate
The authoritative source for Virginia's minimum wage is the Virginia Department of Labor and Industry (DOLI). DOLI publishes the current rate, the required workplace poster, and guidance on tipped wages and exemptions. Because the rate is adjusted for inflation every January 1, confirming the figure with DOLI is the only reliable way to know the exact current number. For the underlying law, the Virginia Minimum Wage Act is found in the Code of Virginia (Title 40.1). For unemployment matters, by contrast, the relevant agency is the Virginia Employment Commission, which is separate from DOLI. When in doubt about your pay, start with DOLI for minimum-wage questions and consult the current statute or an attorney for anything specific to your situation.
Official Virginia Sources
This page is based on Virginia employment law. Rules and figures change — verify the current details directly with the official Virginia sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Virginia state law.
Frequently asked questions
What is Virginia's minimum wage in 2026?
Virginia's minimum wage is well above the federal $7.25. It was $12.41 per hour effective January 1, 2025, and now adjusts upward each January 1 based on inflation, so the 2026 rate is somewhat higher. Because the figure changes annually, confirm the exact current rate with the Virginia Department of Labor and Industry before relying on it.
Can my employer pay me a lower tipped wage in Virginia?
Yes, but with limits. For employees who regularly receive more than $30 a month in tips, an employer may pay a direct cash wage as low as $2.13 per hour and take a tip credit. However, your cash wage plus tips must equal at least the full Virginia minimum wage; if it does not, the employer must make up the difference.
Do any Virginia cities or counties have their own minimum wage?
No. Virginia is a Dillon's Rule state and has not authorized local governments to set their own minimum wages. The same statewide rate applies everywhere, including Arlington, Alexandria, Richmond, and rural counties.
Does Virginia's minimum wage go up automatically each year?
Yes. After the legislated increases through 2023, Virginia's minimum wage now adjusts annually for inflation using the Consumer Price Index. A new rate is announced in advance and takes effect each January 1, so employers and workers should re-check the figure every year.
What should I do if I'm paid below the Virginia minimum wage?
Keep your pay stubs, time records, and tip records, raise the issue with your employer in writing, and file a wage complaint with the Virginia Department of Labor and Industry. You may also be able to bring a private claim to recover unpaid wages and, in some cases, additional damages and attorney's fees.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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