Virginia Overtime Wage Act 2026: VOWA Rules, Damages & Calculator

Virginia Overtime Pay Rules in 2026

Virginia overtime is governed by the Virginia Overtime Wage Act (VOWA, Va. Code §40.1-29.2) — a state-level OT law passed in 2021 that initially imposed stricter penalties than federal FLSA. After 2022 amendments (HB 1173), VOWA was harmonized closer to FLSA but still allows triple damages for willful violations, making it one of the most worker-favorable OT regimes in the South.

Virginia Minimum Wage in 2026

As of January 1, 2026, the Virginia minimum wage remains $12.41/hour (unchanged from 2025 due to no CPI trigger). The scheduled $13.50 increase was tied to legislative reauthorization that did not occur in the 2024 session.

Tipped employees: $2.13/hour cash wage + tip credit (federal floor). Virginia has no local minimum wage — state preemption applies.

Cities pushing for higher wages through contractor requirements:

• Arlington County: $17.00/hour minimum for county contractors
• Alexandria: $17.00/hour for city contractors
• Fairfax County: $16.00/hour for county employees

How to Calculate Virginia Overtime Under VOWA

Standard formula matches FLSA:

Formula: Overtime Pay = Regular Hourly Rate × 1.5 × Hours Over 40

Example — Richmond manufacturing worker:

• 46 hours worked at $19.00/hour
• Regular pay: 40 × $19.00 = $760.00
• Overtime: 6 × ($19.00 × 1.5) = 6 × $28.50 = $171.00
• Weekly gross: $931.00

Use our Virginia overtime pay calculator for full DMV-area calculations including federal contractor wages.

VOWA vs FLSA: Key Differences

Even after the 2022 harmonization, Virginia retains three major worker advantages:

1. Fluctuating Workweek Ban for Salaried Non-Exempt

VOWA prohibits the federal fluctuating workweek (FWW) method. Virginia salaried non-exempt workers must have their regular rate calculated as weekly salary ÷ 40 hours — not divided by total hours worked.

Example — $1,200/week salaried non-exempt worker, 50 hours:

• Federal FWW: $1,200 ÷ 50 = $24/hr × 0.5 × 10 = $120 OT
• Virginia VOWA: $1,200 ÷ 40 = $30/hr × 1.5 × 10 = $450 OT

A $330/week difference, or over $17,000/year.

2. Triple Damages for Willful Violations

VOWA §40.1-29.2(D) allows recovery of 3× unpaid wages if the employer "knowingly failed to pay." FLSA only allows 2× (liquidated damages equal to unpaid wages).

3. 3-Year Statute of Limitations (Always)

Unlike FLSA (2 years standard / 3 if willful), VOWA always allows a 3-year lookback regardless of willfulness.

Salaried & Exempt Workers in Virginia

Virginia adopts the federal FLSA exemptions by reference. Workers must earn $684/week AND pass the duties test. Read exempt vs non-exempt employees.

Virginia-specific exemption (added in HB 1173):

• Derivative employees of farms, sawmills, and similar agricultural operations remain FLSA-exempt
• Independent contractors covered by separate VOWA test (similar to ABC test elements)

DMV Commuter Pay Rules

Virginia workers commuting to Washington D.C. ($17.95 minimum wage), Maryland ($15.00), or other VA jurisdictions are paid based on where the work is performed, not where they live. Federal employees follow OPM pay tables.

Federal Contractor Overtime in Virginia

Virginia hosts the Pentagon, NSA, CIA, and 600+ federal contractors. Federal contractors and subcontractors must comply with:

• Executive Order 14026: $17.75/hour minimum for federal contractor work (2026)
• Contract Work Hours and Safety Standards Act: 1.5× after 40/week (mirrors FLSA)
• Service Contract Act: wage determinations include OT premiums

Mandatory Overtime in Virginia

Virginia has no general cap on mandatory overtime. No healthcare mandatory OT restrictions exist (unlike PA or NJ). Minor workers (under 18) follow federal FLSA child labor limits.

Misclassification Crackdown

Virginia's Worker Misclassification Task Force (created by Executive Order 7, 2019) has recovered over $15 million in back wages 2022–2025, focusing on:

• Construction trades (drywall, framing, roofing)
• Trucking and last-mile delivery
• Tech contractors in the Reston/Tysons corridor

Penalties under Va. Code §40.1-28.7:7 can reach $5,000 per misclassified worker plus debarment from state contracts.

How to Recover Unpaid Overtime in Virginia

• . Virginia Department of Labor and Industry (DOLI) — free, 3-year lookback under VOWA
• . U.S. DOL Wage and Hour Division — federal FLSA channel
• . Private VOWA lawsuit — recover unpaid wages, triple damages if willful, pre-judgment interest at 8%, and attorney's fees

FAQ

Is VOWA still in effect after the 2022 amendments?

Yes. The 2022 amendments harmonized VOWA with FLSA on most calculations but kept the triple damages and 3-year lookback. Virginia is still more worker-friendly than federal law.

Are managers in Virginia entitled to overtime?

Only if they earn under $684/week or fail the FLSA duties test. Many assistant managers in Northern Virginia retail are misclassified.

Do Pentagon contractors get overtime?

Yes — under the Contract Work Hours and Safety Standards Act and FLSA. Most cleared contractors are non-exempt regardless of security clearance level.

Does the 2026 No Tax on Overtime deduction apply in Virginia?

Yes — federal deduction up to $12,500 / $25,000 joint. Virginia's graduated state income tax (2%–5.75%) still applies. See How Overtime Is Taxed 2026.