Virginia: Overtime Changes Boomerang Back to Federal Standard

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APPLIES TO

All Employers with VA Employees

EFFECTIVE

July 1, 2022

QUESTIONS?

Contact HR On-Call

(888) 378-2456

In 2021, Virginia enacted the Virginia Overtime Wage Act (VOWA), changing employer overtime requirements in the state. However, overtime rules are about to change back to following the federal Fair Labor Standards Act (FLSA) rules. Specifically, HB 1173 rolls back the VOWA changes and states that employers must comply with FLSA overtime requirements.

 

Notably, historical provisions for allowing employees to bring claims in court and increased damages and penalties will remain in effect. Additionally, the statute of limitations for bringing claims under state law will be three years, rather than the two-year time period under the FLSA. Finally, the “derivative carrier” exemption under the FLSA will not be allowed under state law for subsidiary or affiliates of air carriers. Employers should start planning to adjust payroll processes to realign with federal overtime rules.

 

Action Items

  1. Update payroll processes for overtime compliance.
  2. Have overtime policies updated.
  3. Have appropriate personnel trained on the new requirements.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2022 ManagEase