Virginia has enacted three interrelated pieces of legislation—House Bill 1 (HB 1), House Bill 20 (HB 20), and Senate Bill 121 (SB 121)—that together reshape the Commonwealth’s minimum wage framework. These laws both revise the schedule and amounts of future minimum wage increases and expand minimum wage coverage to farm laborers and farm employees, who historically have been excluded. Employers should view these measures collectively, as they operate in tandem to increase minimum wage obligations and broaden the scope of covered workers.
Revised Minimum Wage Increase Schedule (HB 1)
HB 1 amends Virginia’s minimum wage statute by resetting the timeline and dollar amounts for scheduled minimum wage increases. The prior phase‑in schedule (2021–2025) has been replaced with a new multi‑year structure running from 2026 through 2029, with higher wage amounts at each tier:
- Rates previously tied to $11.00 per hour for 2027 and $12.00 per hour for 2028 are increased to $13.75 and $15.00 per hour, respectively. In other words, beginning January 1, 2027, the state minimum wage will increase to $13.75, and will increase again on January 1, 2028 to $15.00.
- Beginning January 1, 2029, the Virginia Commissioner of Labor must establish the adjusted state hourly minimum wage based on Consumer Price Index (CPI) changes.
These changes significantly raise labor costs over time and extend Virginia’s CPI‑based adjustment mechanism further into the future.
Expansion of Minimum Wage Coverage to Farmworkers (HB 20 and SB 121)
HB 20 and SB 121 both amend the definition of “employee” under § 40.1‑28.9 of the Code of Virginia to remove farm laborers and farm employees from the list of excluded worker categories. Together, these bills clarify that farmworkers are entitled to Virginia minimum wage protections going forward:
- Farm laborers and farm employees are removed from statutory exclusions, and the remaining exclusions are renumbered.
- Beginning January 1, 2027, farmworkers must be paid at least the applicable Virginia minimum wage.
- Employers of farmworkers must comply with tipped‑employee wage rules, where applicable, and with all other wage determination provisions of the statute.
- The amendments apply broadly to both current and future versions of the minimum wage law, reinforcing legislative intent to permanently extend coverage.
These measures represent a major shift for agricultural employers, many of whom previously operated outside Virginia’s state minimum wage requirements.