Virginia, famously known as the “birthplace of the nation,” follows both federal law (the Fair Labor Standards Act – FLSA) and state law (the Virginia Overtime Wage Act) when it comes to overtime pay. Starting January 1, 2026, many significant updates were made to the state’s minimum wage, salary thresholds, and employee protections.
The table below reflects key changes that impact overtime and exemptions in Virginia in 2026:
| Update Area | 2025 Changes & Details | Effective Date |
| Minimum Wage | $12.41/hr statewide (tipped workers included) | Jan 1, 2026 |
| Salary Exemption Threshold | $58,656/year ($1,128/week) for EAP exemption (federal FLSA) | Jan 1, 2026 |
| Highly Compensated Employee | $151,164/year or more for exemption | Jan 1, 2026 |
| Expanded Non-Compete Ban | Non-competes prohibited for all non-exempt/overtime-eligible employees | July 1, 2026 |
| Minimum Wage Increase | Indexed to inflation; set to rise to $12.77/hr in 2026 | Jan 1, 2026 |
Virginia’s overtime regulations combine federal FLSA standards with state-specific requirements through the Virginia Overtime Wage Act (VOWA). Virginia’s overtime laws are a blend of federal FLSA and state-specific requirements. Employees who work more than 40 hours in a workweek are eligible to receive overtime pay at 1.5 times their regular wages. The state does not mandate daily overtime pay, but only on weekly totals.
Effective January 1, 2025, Virginia’s minimum wage increased to $12.41 per hour, adjusted annually based on the Consumer Price Index, and tipped employees must receive a minimum base wage of $2.13 per hour with combined earnings (base wage plus tips) meeting or exceeding $12.41 per hour
Meanwhile, the new law, effective July 1, 2026, prohibits non-compete agreements for all overtime-eligible employees (non-exempt), irrespective of their pay. And, all employees, including tipped staff, must receive at least the state minimum wage, which will increase every year.
Virginia’s overtime pay laws depend on a clear classification of employees to determine whether a worker qualifies for overtime pay.
The exempt category also includes some special cases, such as agricultural workers, seasonal amusement/recreational staff, those who work in the transportation industry, or who work on a commission basis.
Employers must know such classification to ensure that all employees get paid accordingly.
Although Virginia follows the federal FLSA for overtime requirements, it also enforces VOWA, enacted in 2021, to strengthen employee protections and enforcement.
Under both federal and Virginia law, all employees are entitled to receive 1.5X their regular pay rate for all hours worked over 40 in a workweek. For example, if Candy works 45 hours a week at $20/hour, she earns $800 for her 40 work week shift and $150 overtime pay for 5 hours at 1.5X her regular pay, totaling her weekly pay to $950.
The only difference between federal and state laws is enforcement and penalties. Where FLSA sets the base standard, VOWA allows employees to claim double damages (and sometimes more) for unpaid and/or delayed overtime.
The table below gives an overview of how federal and state overtime rules compare in 2025:
| Aspect | Federal FLSA (2025) | Virginia Law (2025) |
| Weekly Overtime | Over 40 hrs/week @ 1.5× rate | Mirrors federal; no daily/holiday overtime |
| Daily Overtime | No | No |
| Salary Exempt Min. | $58,656/year | Mirrors federal |
| Highly Compensated | $151,164/year | Mirrors federal |
| Minimum Wage | $7.25/hr | $12.41/hr; tipped included |
| Non-Compete Status | Not covered | Banned for non-exempt/overtime workers |
| Exemptions | White-collar, select jobs | Same as federal plus state exclusions |
In Virginia, employees are classified as exempt based on their job duties and salary requirements. These typically include:
Here are the Virginia exempt employee classifications in detailed one-liners (updated with authentic sources):
As per the Virginia Overtime Wage Act, all non-exempt employees are entitled to receive overtime pay of 1.5 times their regular wage rate for all hours worked beyond 40 per week. The state does not mandate any daily or holiday overtime.
While the rate and calculation method are the same as federal FLSA, the state law applies more broadly and prohibits non-competes for all non-exempt employees.
As of 2025, executives, administrators, professionals, outside salespersons, highly compensated employees, specified IT professionals, and some industry-specific roles, such as agricultural labor, seasonal/recreational staff, and commission-based workers, are exempt from receiving overtime pay.
No. As per Virginia’s overtime laws for 2025, employers are only entitled to pay overtime every week for all hours worked above 40 hours per week.
Employees can report violations to the Virginia Department of Labor and Industry or the U.S. Department of Labor.
The state law provides unique exemptions for commission-based, agricultural, summer camp/seasonal/recreational, and some transportation-related workers.