Understanding Changes to Virginia Overtime Laws

Historically, Virginia relied on the federal Fair Labor Standards Act (“FLSA”) to govern overtime obligations. However, in March of 2021, Virginia passed its first stand-alone overtime law. This act went into effect on July 1, 2021 but was amended in April of 2022. The newest revisions went into effect on July 1, 2022.

The 2022 amendments clarify that employers must comply with FLSA overtime regulations. Further employers may rely on the over 80 years of federal FLSA rules, regulations, guidance, and governing case laws to determine their overtime obligations to employees.

Highlights of the Virginia law include the following:

• Employees may bring in state court an individual or collective action claims for unpaid wages, including overtime. This is in addition to employee’s private right of action under the FLSA.
• Damages for overtime violations in Virginia are not necessarily limited to those available under the FLSA. For example, the heightened damages and penalties authorized under the Wage Payment Act remain viable for overtime violations in Virginia, including automatic liquidated damages equal to the amount of unpaid wages and pre-judgment interest at 8% per year, as well as the possibility of civil penalties of $1,000 for each violation and treble damages for “knowing” violations.
• Unpaid overtime claims pursued under the Virginia Wage Payment Act can be commenced within three years, as opposed to the normal 2 years under the FLSA.
• Finally, Virginia law disallows the exemption for derivative carriers, available under the FLSA. A derivative carrier is a subsidiary or affiliate of an air carrier that enjoys common ownership or control with the parent and whose employees perform work traditionally performed by airline employees.

Do you need help understanding your obligations as an employer? Or are you an employee seeking compensation for unpaid overtime? We can help. Contact Cook, Craig, and Francuzenko today to speak to an attorney about your case.