Payment of Wage Law

• The Virginia Payment of Wage Law governs the private industry's wage payment practices. It does not apply to public sector employees located within Virginia. Employers must comply with the act by establishing regular pay rates and pay dates. Without prior approval from each employee, employers in Virginia must pay their employees in cash or by paper check.
  
  

New Amendment

• The Virginia General Assembly enacted legislation in 2003, amending the Payment of Wage Act. Effective July 1, 2003, employers are now allowed to use pay cards to electronically deposit their employees' paychecks. Thus, employers now have four ways to pay their employees, but they must obtain prior consent from their employees before paying them electronically by direct deposit or by pay card.
  
  

Timing and Deductions

• Employers must pay their employees at least once monthly if their employees are all salaried. For employees who are paid hourly, employers must pay them at least once every two weeks. Employers who pay their employees by direct deposit must comply with the Commonwealth's paycheck timing laws and must pay their employees at least once every two weeks or once monthly. Employers cannot charge their employees for electronic debit fees, unless their employees specifically consent to those deductions. Employers cannot deduct fees from an employee's paycheck if doing so would cause her to earn less than minimum wage. The minimum wage in Virginia is the same as the federal hourly minimum wage. Effective July, 2009, the federal and state minimum wage is $7.25 per hour.
  
  

Voluntary Consent

• To pay their employees electronically, employers must obtain written consent from each employee authorizing direct deposits. Virginia law specifically prohibits the use of coercion when obtaining consent. Employers who make payment contingent upon electronic transfers are guilty of violating the act and face $1,000 penalties each time they violate the act. Employers cannot force employees to pay any electronic transfer fees by making the authorization contingent upon future employment.
  
  

Considerations

• Since employment laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.