Virginia employers have more negative hits on their horizon. The minimum wage, which jumped $2.25 per hour to $9.50 on May 1, 2021, is slated to rise by another $1.50 to $11/hour on January 1, 2022; and then another $1 in 2023 to $12/hour. However, if the General Assembly chooses to reenact these rate increases before July 1, 2024, then the minimum will rise to $15 per hour by 2026. Whether they do or not, new overtime rules will become effective in the Old Dominion on July 1, 2021. In a few weeks, a new law passed back in March becomes effective and Virginia employers will be subject to additional overtime obligations. Specifically, the new law implements different methods of calculating regular rate of pay for hourly workers as opposed to those on a salaried basis. The rate of pay for hourly employees (for the purposes of overtime calculation) is the normal hourly rate plus any non-overtime wages paid divided by the total number of hours worked that week. The regular rate for non-exempt employees on salary however is 1/40th of ALL WAGES paid for that workweek. Furthermore, it applies damages in excess of those available under the Fair Labor Standards Act and automatically imposes liquidated damages and prejudgment interest (at 8%) with a three-year statute of limitations.