*Must be approved by General Assembly on July 1, 2024
Department of Labor and Industry Exemptions (DOLI)
The following is a list of DOLI exemptions to paying the minimum wage.
Caddies on gold courses
Children under 18 employed by their parent/guardian
Summer camp counselors
Children under 16 regardless of employer
Student work/study program employees
Babysitters who work less than 10 hours per week
Farmworkers and laborers
How do tips factor into the new minimum wage?
Currently, a server’s base salary is $2.13. The total earnings of a server (base salary + tips) must equal the minimum wage. If it does not, it is the employer who must make up the difference for their server. This will not change with the increase in the minimum wage.
“Pro” and “Con” considerations via minimum-wage.procon.org
Current wages do not cover the cost-of-living expenses
Wages will increase for more than 1.27 million Virginias
Buying power will improve
A decrease in public assistance rolls will lower government costs
Will create additional incentive to work and stay in school
Potential for more part-time employees
New financial models for businesses will have to be developed
Increase in joblessness due to businesses scaling back hours/positions, eliminating entry-level positions, and the potential rise in automation
Potential for lower employee benefits as a cost-cutting measure to cover the increase in wages
Wage scale compression causing currently higher salary employees to want an equivalent pay raise as minimum wage workers.
Negative impact to small business owners
Regional cost-of-living difference not being considered
Relevant results from the Retail Alliance May Retail Pulse Survey
When asked how they might respond to the minimum wage increase, business owners said:
6% would consider automation
17% would reduce staff
17% would cut overhead
20% would reduce staff hours
42% would increase product/service prices
39% would face no impact as they already pay above minimum wage