Virginia Will Increase Minimum Wage to $15 by 2028

What the New Law Does

Virginia's new legislation locks in a phased minimum wage schedule over the next two years, while also expanding wage protections to a group of workers previously excluded from the law.

Jan. 1, 2026: Minimum wage adjusted to $12.77/hour (already in effect)

Jan. 1, 2027: Minimum wage increases to $13.75/hour

Jan. 1, 2028: Minimum wage increases to $15.00/hour

Jan. 1, 2029 and beyond: Annual adjustments tied to the consumer price index (CPI)

The CPI-linked adjustment starting in 2029 means Virginia's minimum wage won't stay static after reaching $15, and it will continue to rise with inflation each year.

Farm Laborers Are Now Covered

One of the more significant changes in this legislation involves who the Virginia Minimum Wage Act (VMWA) applies to. Previously, individuals employed as farm laborers or workers were excluded from the definition of "employee" under the VMWA, meaning they weren't entitled to its protections.

That changes on January 1, 2027. The exemption will be eliminated, and farm laborers and employees must be paid at least the state minimum wage going forward. Agricultural employers in Virginia should treat this as a separate compliance action from the general wage increase.

What Employers Need to Do

Two deadlines are coming. The employers who handle this smoothly are the ones who start now.

- Review your current pay rates: Identify any employees, including part-time, seasonal, and agricultural workers, who are currently paid at or near minimum wage. Plan wage adjustments ahead of each effective date.

- Update payroll configurations: Your payroll system needs to reflect the new rates by January 1, 2027. Don't wait until year-end to make those changes.

- Revisit your employee handbook: If your policies reference specific wage floors or tie any calculations to minimum wage, those will need updating.

- Inform affected employees: Clear communication about wage increases especially for employees being brought up to the new minimum helps manage expectations and builds trust.

- Track the farm laborer change separately If your business employs agricultural workers, this isn't just a rate change, it's a change in who is covered under Virginia wage law. Ensure those workers are folded into your minimum wage compliance processes before January 1, 2027.

The Bigger Picture

Virginia's path to $15 follows a broader national trend of state-level minimum wage increases moving faster than the federal floor of $7.25/hour. With CPI indexing beginning in 2029, Virginia employers should build wage flexibility into their long-term workforce planning — not just budget for the 2027 and 2028 jumps.

Compliance isn't just about avoiding penalties. Getting wages right supports workforce stability, reduces turnover, and keeps your business out of unnecessary trouble.

How Brand's Can Help

A calendar reminder won't cut it here. Brand's Payroll helps employers update payroll configurations, stay ahead of compliance deadlines, and ensure every employee is paid accurately, every time. Let's make sure your payroll is ready before January 1, 2027.