                                 CODE OF VIRGINIA

TIME AND MEDIUM OF PAYMENT; WITHHOLDING WAGES; WRITTEN STATEMENT OF EARNINGS;
AGREEMENT FOR FORFEITURE OF WAGES; PROCEEDINGS TO ENFORCE COMPLIANCE; PENALTIES
(§ 40.1-29)

A. All employers operating a business or engaging an individual to perform
domestic service shall establish regular pay periods and rates of pay for
employees except executive personnel. All such employers shall pay salaried
employees at least once each month and employees paid on an hourly rate at least
once every two weeks or twice in each month, except that (i) a student who is
currently enrolled in a work-study program or its equivalent administered by any
secondary school, institution of higher education, or trade school, and (ii)
employees whose weekly wages total more than 150 percent of the average weekly
wage of the Commonwealth as defined in &#xA7; 65.2-500, upon agreement by each
affected employee, may be paid once each month if the institution or employer so
chooses. Upon termination of employment an employee shall be paid all wages or
salaries due him for work performed prior thereto; such payment shall be made on
or before the date on which he would have been paid for such work had his
employment not been terminated.

B. Payment of wages or salaries shall be (i) in lawful money of the United
States, (ii) by check payable at face value upon demand in lawful money of the
United States, (iii) by electronic automated fund transfer in lawful money of
the United States into an account in the name of the employee at a financial
institution designated by the employee, or (iv) by credit to a prepaid debit
card or card account from which the employee is able to withdraw or transfer
funds with full written disclosure by the employer of any applicable fees and
affirmative consent thereto by the employee. However, an employer that elects
not to pay wages or salaries in accordance with clause (i) or (ii) to an
employee who is hired after January 1, 2010, shall be permitted to pay wages or
salaries by credit to a prepaid debit card or card account in accordance with
clause (iv), even though such employee has not affirmatively consented thereto,
if the employee fails to designate an account at a financial institution in
accordance with clause (iii) and the employer arranges for such card or card
account to be issued through a network system through which the employee shall
have the ability to make at least one free withdrawal or transfer per pay
period, which withdrawal may be for any sum in such card or card account as the
employee may elect, using such card or card account at financial institutions
participating in such network system.

C. No employer shall withhold any part of the wages or salaries of any employee
except for payroll, wage or withholding taxes or in accordance with law, without
the written and signed authorization of the employee. On each regular pay date,
each employer, other than an employer engaged in agricultural employment
including agribusiness and forestry, shall provide to each employee a written
statement, by a paystub or online accounting, that shows the name and address of
the employer; the number of hours worked during the pay period if the employee
is paid on the basis of (i) the number of hours worked or (ii) a salary that is
less than the standard salary level adopted by regulation of the U.S. Department
of Labor pursuant to &#xA7; 13(a)(1) of the federal Fair Labor Standards Act, 29
U.S.C. &#xA7; 213(a)(1), as amended, establishing an exemption from the
Act&#8217;s overtime premium pay requirements; the rate of pay; the gross wages
earned by the employee during the pay period; and the amount and purpose of any
deductions therefrom. The paystub or online accounting shall include sufficient
information to enable the employee to determine how the gross and net pay were
calculated. An employer engaged in agricultural employment including
agribusiness and forestry, upon request of its employee, shall furnish the
employee a written statement of the gross wages earned by the employee during
any pay period and the amount and purpose of any deductions therefrom.

D. No employer shall require any employee, except executive personnel, to sign
any contract or agreement which provides for the forfeiture of the
employee&#8217;s wages for time worked as a condition of employment or the
continuance therein, except as otherwise provided by law.

E. An employer who willfully and with intent to defraud fails or refuses to pay
wages in accordance with this section or § 40.1-29.3, unless the failure to pay
was because of a bona fide dispute between the employer and its employee:

   1. To an employee or employees is guilty of a Class 1 misdemeanor if the value
   of the wages earned and not paid by the employer is less than $10,000; and

   2. To an employee or employees is guilty of a Class 6 felony (i) if the value
   of the wages earned and not paid is $10,000 or more or (ii) regardless of the
   value of the wages earned and not paid, if the conviction is a second or
   subsequent conviction under this section or &#xA7; 40.1-29.3.
   				For purposes of this section, the determination as to the &#8220;value of
   the wages earned&#8221; shall be made by combining all wages the employer
   failed or refused to pay pursuant to this section and &#xA7; 40.1-29.3.

F. The Commissioner may require a written complaint of the violation of this
section and, with the written and signed consent of an employee, may institute
proceedings on behalf of an employee to enforce compliance with this section,
and to collect any moneys unlawfully withheld from such employee that shall be
paid to the employee entitled thereto. In addition, following the issuance of a
final order by the Commissioner or a court, the Commissioner may engage private
counsel, approved by the Attorney General, to collect any moneys owed to the
employee or the Commonwealth. Upon entry of a final order of the Commissioner,
or upon entry of a judgment, against the employer, the Commissioner or the court
shall assess attorney fees of one-third of the amount set forth in the final
order or judgment.

G. In addition to being subject to any other penalty provided by the provisions
of this section, any employer who fails to make payment of wages in accordance
with subsection A shall be liable for the payment of all wages due, and an
additional equal amount as liquidated damages, plus interest at an annual rate
of eight percent accruing from the date the wages were due.

H. Any employer who knowingly fails to make payment of wages in accordance with
subsection A or &#xA7; 40.1-29.3 shall be subject to a civil penalty not to
exceed $1,000 for each violation. The Commissioner shall notify any employer
that the Commissioner alleges has violated any provision of this section or
&#xA7; 40.1-29.3 by certified mail. Such notice shall contain a description of
the alleged violation. Within 15 days of receipt of notice of the alleged
violation, the employer may request an informal conference regarding such
violation with the Commissioner. In determining the amount of any penalty to be
imposed, the Commissioner shall consider the size of the business of the
employer charged and the gravity of the violation. The decision of the
Commissioner shall be final. Civil penalties owed under this section shall be
paid to the Commissioner for deposit into the general fund of the State
Treasurer. The Commissioner shall prescribe procedures for the payment of
proposed assessments of penalties that are not contested by employers. Such
procedures shall include provisions for an employer to consent to abatement of
the alleged violation and pay a proposed penalty or a negotiated sum in lieu of
such penalty without admission of any civil liability arising from such alleged
violation.

I. Final orders of the Commissioner, the general district courts, or the circuit
courts may be recorded, enforced, and satisfied as orders or decrees of a
circuit court upon certification of such orders by the Commissioner or the court
as appropriate.

J. In addition to any civil or criminal penalty provided by this section, and
without regard to any exhaustion of alternative administrative remedies provided
for in this section, if an employer fails to pay wages to an employee in
accordance with this section, the employee may bring an action, individually,
jointly, with other aggrieved employees, or on behalf of similarly situated
employees as a collective action consistent with the collective action
procedures of the Fair Labor Standards Act, 29 U.S.C. &#xA7; 216(b), against the
employer in a court of competent jurisdiction to recover payment of the wages,
and the court shall award the wages owed, an additional equal amount as
liquidated damages, plus prejudgment interest thereon as provided in subsection
G, and reasonable attorney fees and costs. If the court finds that the employer
knowingly failed to pay wages to an employee in accordance with this section,
the court shall award the employee an amount equal to triple the amount of wages
due and reasonable attorney fees and costs.

K. As used in this section, a person acts &#8220;knowingly&#8221; if the person,
with respect to information, (i) has actual knowledge of the information, (ii)
acts in deliberate ignorance of the truth or falsity of the information, or
(iii) acts in reckless disregard of the truth or falsity of the information.
Establishing that a person acted knowingly shall not require proof of specific
intent to defraud.

L. An action under this section shall be commenced within three years after the
cause of action accrued. The period for filing is tolled upon the filing of an
administrative action under subsection F until the employee has been informed
that the action has been resolved or until the employee has withdrawn the
complaint, whichever is sooner.

HISTORY: Code 1950, § 40-24; 1962, c. 66; 1966, c. 88; 1968, c. 262; 1970, c.
321; 1972, c. 848; 1977, c. 308; 1979, c. 50; 1989, c. 583; 1991, c. 499; 1993,
c. 600; 2002, c. 321; 2003, c. 638; 2004, c. 358; 2005, cc. 595, 851; 2009, c.
728; 2016, c. 593; 2019, cc. 836, 845; 2020, cc. 202, 868, 1038; 2021, Sp. Sess.
I, cc. 445, 513; 2022, cc. 461, 462.