Virginia Department of Labor and Industry’s Update on Virginia Wage Payment Statements

by Kristina Vaquera and Milena Radovic
Jackson Lewis PC.   

In 2019, the Virginia General Assembly amended Virginia Code § 40.1-29 to require employers to provide employees with a written statement, by paystub or online accounting, showing the following:

1.       The name and address of the employer;

2.       The number of hours worked during the pay period;

3.       The rate of pay;

4.       The gross wages earned by the employee during the pay period; and

5.       The amount and purpose of any deductions.

The law took effect on January 1, 2020. At the time the bill was passed, many employers wondered whether it would apply to exempt employees as well non-exempt employees as the Code section failed to distinguish between the two. On November 5, 2019, Virginia Department of Labor and Industry issued an announcement explaining that the law applies to all employees, even those who are not paid on an hourly basis, such as salaried and piece work employees.  In the announcement, Virginia DOLI stated that for salaried, piece work employees, and others who are not traditionally paid on an hourly basis, it would not take any steps to enforce the requirement for those until July 1, 2020, and explained that the delay in the enforcement of this policy applies only to the hours of work requirement and does not apply to any other provisions of §40.1-29.

As noted in our previous article, employers affected by the new law should review and update their payroll practices to ensure compliance. They also should review and revise any employee handbook policies dealing with wage statements or timekeeping.