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Author: ADP Admin/Tuesday, May 30, 2023/Categories: Compliance Corner
Virginia has enacted legislation (House Bill 1924), which will eliminate subminimum wage certificates for individuals with disabilities. House Bill 1924 takes effect on July 1, 2023.
The details
There is an exception to the Virginia Minimum Wage Act that allows employers with a special certificate issued under the federal Fair Labor Standards Act to pay workers with disabilities less than the state minimum wage (also known as a subminimum wage).
After July 1, 2023, these certificates will no longer be issued and employers can’t begin paying a subminimum wage to individuals with disabilities. Employers that had a subminimum wage certificate that was issued prior to July 1, 2023, will have until July 1, 2030 to increase the pay rates of workers with disabilities to at least the Virginia minimum wage.
Next steps
Virginia employers should review their pay policies and practices to ensure compliance with House Bill 1924.
Please contact your ADP Service Representative with any questions.