Compliance Watch:

What are my rights as a salaried employee in Virginia?

A salaried employee in Virginia is any individual who receives a predetermined amount of compensation at the end of every pay period regardless of the number of hours worked, quality, or quantity of their work. In Virginia, employers are required to pay their salaried employees at least once in a month. The acceptable modes of salary payment include checks that are payable at face value, automated electronic transfers, direct deposits to card accounts, and prepaid debit cards. 

Virginia adopts the federal definition and classifications of salaried employees as outlined by the Federal Labor Standards Act (FLSA). Therefore, salaried employees in the state are classified into exempt and non-exempt based on their eligibility for overtime and whether they are subject to some state wage and hour laws.

Virginia state laws extend the following entitlements to salaried employees in the state: 

1. Minimum Wage: Non-exempt salaried employees in Virginia are entitled to a minimum compensation of the higher of the federal minimum wage or state minimum wage. Exempt employees in the state are entitled to the federal minimum salary threshold of $684 per week or $35,568 annually.
2. Overtime Pay: Eligible salaried employees are entitled to overtime pay at a rate of one-and-a-half times their regular wage for time worked above 40 hours per week.
3. Equal Pay: Article 1 of the Code of Virginia protects salaried employees from discrimination based on gender and other protected characteristics. All employees have the right to receive equal pay for equal work for work performed under the same working conditions and requiring the same level of skill, effort, and responsibility. Employers in the state can only base differences in salaries on seniority, merit, or systems that compute output based on quality and quantity.
4. Safety in the Workplace: Salaried employees in Virginia have the right to a safe and healthy work environment free of hazards that could cause harm to employees. Employers who fail to comply with Occupational Safety and Health Administration (OSHA) regulations risk penalties of up to $13,047 for each violation. 
5. Family and Medical Leave: Eligible salaried employees can take up to 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA) for certain family or medical reasons without losing their jobs. 
6. Discrimination and Harassment Protection: Virginia labor laws protect salaried employees from discrimination and harassment through intimidation, hostile work environments, and unreasonable interference of their work based on any of the following characteristics:
   1. • Race
      • Color
      • Religion
      • Gender
      • Sexual orientation, gender identity or expression
      • National origin
      • Age
      • Disability
      • Genetic information
      • Military status 
      • Pregnancy 

It’s important to remember that employment laws and regulations can change over time. Therefore, it’s essential to consult the most up-to-date resources such as the Virginia State Law Portal or seek legal counsel for the most current information on the rights of salaried employees in Virginia.

Yes. It is worth noting that compensation on a salary basis does not exclude an employee from being eligible for overtime pay. While some salaried employees are exempt from overtime laws, others are non-exempt and accrue overtime for all time worked in excess of 40 hours a week. These employees earn overtime pay at a rate of 1.5 times their regular wage as per Virginia overtime laws. Eligible law enforcement officers and firefighters can opt for compensatory time in lieu of overtime pay.

Yes. Article 2 of the Code of Virginia identifies three instances in which employers are allowed to deduct a salaried employee’s wages. First, employers are allowed to deduct payroll, wage, and withholding taxes. Second, all deductions made in accordance with the law, such as court-ordered deductions, are permissible. Third, an employee can write to their employer authorizing deductions from their salary. 

Any employer who makes any other deductions from their employees’ salaries is guilty of a Class 1 demeanor if the unlawful deductions are less than $10,000 and a Class 6 felony if the deductions are higher or the employer has been convicted of a similar offense in the past.

No. Virginia break laws do not guarantee rest or meal breaks for employees in the state. Such arrangements are left to the discretion of the employer. However, employees under 16 years are entitled to 30-minute rest breaks for every 5 hours of work. 

Although salaried employees in the state are not eligible for rest and meal breaks, they are entitled to paid sick leave, which accrues starting from the first day of employment as per Virginia leave laws. The employees accrue one hour of paid sick leave for every 30 hours of work for up to 40 hours in a year.

According to the FLSA, any alternative to the standard 9-5, 40-hour week constitutes a flexible work schedule. Virginia state laws do not address flexible work schedules but they do not prohibit them either. In fact, state agencies are encouraged to adopt alternative work arrangements.

In Virginia, exempt status refers to ineligibility for overtime. Exempt employees in the state are not entitled to any overtime pay or compensatory time for exceeding the standard 40 hours in a workweek. Typically, exempt employees fall under distinct categories of employees based on their job duties, basis of compensation, and a minimum salary threshold of $684 per workweek.

Exempt salaried status in Virginia has several implications for both employers and employees, including the following:

1. Overtime Exemption: Exempt salaried employees in the state are not eligible for overtime pay for working more than 40 in a workweek. To employers, this leads to cost savings on wages and salaries since they do not incur additional costs for overtime by paying a premium rate for overtime hours.
2. Fixed Predetermined Salary: Exempt employees receive a fixed amount as compensation every pay period regardless of the number of hours worked. On one hand, this provides them with income stability but on the other hand, they do not receive additional compensation for putting in extra work. 
3. Job Duties: Salaried employees in the state must meet certain job duty requirements as defined by the Fair Labor Standards Act (FLSA) to qualify for exempt status.
4. Minimum Salary Threshold: Virginia state laws require employers in the state to adhere to federal guidelines when determining the minimum salary threshold for exempt employees. The current threshold is $684 per week. 
5. Flexibility: Exempt employees often have greater flexibility in managing their work schedules and tasks. Upon agreement with their employers, exempt employees may be allowed to adopt flexible work arrangements that allow them to optimize their work-life balance.

Please note that this table provides a general overview of the differences between exempt and non-exempt employees in Virginia. It’s essential to seek legal counsel or consult HR professionals for more detailed and accurate advice based on your specific circumstances.

To qualify as an exempt employee in Virginia, an individual must meet specific criteria set by the FLSA related to their job duties and salary. The following tests use this criteria to determine the status of salaried employees in Virginia:

1. Salary Basis Test: To qualify as exempt, an employee’s compensation must be a predetermined and fixed amount that is not affected by variations in the quality or quantity of their work.
2. Salary Level Test: An employee’s salary must meet or exceed the minimum salary threshold set by FLSA. The current federal minimum salary threshold is $684 per week ($35,568 annually). 
3. Duties Test: Salaried employees only qualify for exempt status if they fall under the following categories and perform the corresponding primary duties. 
   1. • Executive Employees: Salaried employees in executive roles are considered exempt if they meet the salary level and basis tests and manage an organization or one of its recognized departments or subdivisions, supervise at least two full-time employees, and have the authority to hire or fire employees.
      • Administrative Employees: Salaried administrative employees qualify for exempt status if they are required to exercise independent judgment in material issues related to the business and their primary duties involve non-manual work that is directly related to the management or general business operations of their employer.
      • Professional Employees: Salaried professionals whose work requires advanced knowledge in a field of science or learning that is typically acquired through education or training qualify as exempt if they pass the salary basis and level tests.
      • Computer Professional: Salaried employees who engage in computer-related jobs such as software development or systems analysis are considered exempt if they pass the salary basis and salary level tests. Please note that this exemption does not apply to employees who manufacture and repair computers. 
      • Outside Sales Employees: Salaried sales employees meet the criteria for exempt status if they are regularly engaged in sales generation away from their employers’ place of work and their primary duties involve generating orders. 

Please note that labor laws are dynamic. Therefore, it’s essential to consult the most up-to-date federal and state regulations and seek legal counsel when determining your exempt status.

Non-exempt salaried employees are bound by the state’s minimum wage laws. Therefore, they are entitled to a minimum compensation of $12 per hour. Exempt employees are not entitled to overtime pay regardless of hours worked. However, they are entitled to the federal minimum salary threshold of $684 per week.

Salaried employees who are eligible for overtime accrue overtime pay at a rate of 1.5 times their regular rate for all time worked beyond 40 hours in a workweek. Some state officials accrue compensatory time in lieu of overtime pay for working public holidays. Eligible employees who work legal holidays accrue paid compensatory time of the same number of hours worked during the holiday. Comp time should be taken in the same year it is accrued.

Employers in Virginia are allowed to make the following deductions from the salaries of their employees:

1. Legally Mandated Deductions: All deductions that are required by law are permissible. These include court-ordered wage garnishments such as child support, alimony, and payments to creditors and federal, state, and local taxes. State income tax in Virginia ranges from 2% to 5.75% based on an employee’s salary.
2. Voluntary Deductions: Salaried employees in Virginia can authorize deductions such as contributions to health plans, retirement funds, and savings plans. Further, as a right-to-work state, Virginia laws allow employers to deduct union dues from their employees’ salaries. However, employers cannot require employees to pay union dues as a condition for employment. 

All other deductions are prohibited unless employees authorize them explicitly. Employers who make unlawful or unauthorized deductions are guilty of a Class 1 misdemeanor or Class 6 felony based on the amount deducted and prior reported incidents of making unauthorized deductions.

Virginia State law provides the following employee protections and benefits to ensure fair treatment in the workplace.

• Minimum Compensation Laws: Virginia law establishes the minimum wage rate of $12 for non-exempt employees and guarantees exempt employees a minimum salary of $684 per week. 
• Overtime Compensation: Non-exempt salaried employees who work more than 40 hours in a workweek are entitled to overtime pay at a rate of 1.5 times their regular wage.
• Anti-Discrimination Laws: Virginia laws prohibit discrimination in the workplace on the basis of various protected characteristics, including race, color, religion, national origin, sex, age, disability, and other protected characteristics.
• Family and Medical Leave: Eligible salaried employees are entitled to up to 12 weeks of unpaid leave as per the FMLA in addition to paid sick leave, which accrues at the rate of one hour of paid sick leave for every 30 hours of work for up to 40 hours in a year. 
• Workers’ Compensation: Employees who suffer work-related injuries or illnesses are entitled to workers’ compensation benefits as per the Virginia Workers’ Compensation Act.  
• Whistleblower Protection: Virginia laws protect employees from retaliation for reporting violations of the law or engaging in protected activities such as reporting workplace safety concerns or labor law violations.

Protecting your rights as an employee is important. Should you suspect or confirm any infringement upon your rights, it is imperative to act promptly by reporting the violation to the relevant authorities. 

You can report minimum wage violations to the Virginia Department of Labor and Industry or claim unpaid wages by filling out this claim form. For employee misclassification or retaliation for reporting labor violations, you can submit your claim to the Virginia Department of Labor and Industry Labor & Employment Law Division by filling out this form.