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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

Overview of Virginia Overtime Laws 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. 

Eligibility for Overtime in Virginia

Virginia’s overtime pay laws depend on a clear classification of employees to determine whether a worker qualifies for overtime pay. 

  • Non-exempt employees are mostly hourly or salaried workers who earn less than the salary threshold set as per the state/federal rules. They qualify to receive overtime pay, unless explicitly exempt. 
  • Meanwhile, exempt employees typically comprise workers who hold higher positions, such as executives, administrative, and professionals, who are highly compensated, or work as outside salespersons. IT professionals earning at least $684 per week ($35,568 per year) and passing the duties test.

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.

Federal vs. Virginia Overtime Rules

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

Exemptions in Virginia

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):

  • Executive Employees: Individuals who manage others, supervise at least two full-time employees, have hiring/firing authority, and earn at least $684 weekly ($35,568 annually) qualify as exempt.
  • Administrative Employees: Workers who perform office/non-manual work directly related to business operations, exercise independent judgment, and earn the federal minimum salary threshold are classified as exempt.
  • Professional Employees: Individuals whose duties require advanced knowledge in specialized fields (law, medicine, accounting, engineering), possess relevant degrees/licenses, and meet salary requirements are exempt from overtime.
  • Outside Salespersons: Employees who sell goods/services away from the employer’s premises and work on a commission basis qualify for the outside sales exemption.
  • Highly Compensated Employees: Workers earning $107,432 or more per year are exempt from overtime pay requirements.
  • Computer/IT Professionals: Employees performing system analysis, programming, software engineering, or IT management who earn at least $684 weekly or $27.63 hourly are exempt.
  • Agricultural and Seasonal Workers: Farm laborers and employees at seasonal/recreational establishments are exempt from Virginia overtime requirements.
  • Commission-Based Employees: Sales employees compensated primarily on a commission basis are exempt from the non-compete restrictions under Virginia law, though they may still be subject to other overtime classifications.

Employer Obligations and Employee Rights

  • Weekly wage payment: Employers must pay weekly wages as per the scheduled payday.
  • Recordkeeping: Employers must maintain a record of hours, pay rates, wage deductions, and overtime for all employees for at least three years.
  • Non-compete Ban: Prohibit non-compete agreements for overtime-eligible (non-exempt) employees, with mandatory workplace posting required. Fines apply in the case of violations of $10,000 per unlawful agreement.
  • Wage protection: Ensure tipped employees earn tips plus base wages and meet or exceed the minimum pay.
  • Workplace protections: Employers must adhere to OSHA/VOSH requirements, anti-discrimination, and privacy.
  • Benefits: Employers must offer Social Security benefits, unemployment insurance, and workers’ compensation.
  • Penalties: Failure to pay overtime wages can result in back wages, fines, and civil actions, if necessary.
  • Reporting: Employees can report violations/complaints to the U.S. Department of Labor Wage & Hour Division and the Virginia Department of Labor.

Frequently Asked Questions

What are the overtime laws in Virginia under the Virginia Overtime Wage Act?

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.

How does Virginia’s overtime calculation differ from federal law?

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.

Which employees are exempt from overtime in Virginia?

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.

Does Virginia require daily 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.

How can employees in Virginia file overtime complaints?

Employees can report violations to the Virginia Department of Labor and Industry or the U.S. Department of Labor.

Are there special overtime rules for certain industries in Virginia?

The state law provides unique exemptions for commission-based, agricultural, summer camp/seasonal/recreational, and some transportation-related workers.

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