The Governor proposes to increase the minimum wage … 123 and S.B. Significant expansion of Virginia’s wage payment law Governor Northam signed into law two somewhat conflicting bills (H.B. enacting "wage theft laws" that aim to increase employer compliance with the law. They’re also calling for the department to step up enforcement against employers who have been credibly accused of wage theft, with fines and additional referrals to law enforcement. By clicking "accept" you confirm that you have read and understand this notice. The new wage theft law also has “teeth” in that it grants all Virginia employees the right to file suit against their employer, individually or collectively, to recover unpaid wages. The new law does create a new exception for potential criminal liability where the failure to pay wages is based on a legitimate legal dispute between the employer and the worker. Previously, employees could not sue their employers under state law and were instead required to file an administrative claim with the Virginia Department of Labor and Industries. To stay protected, the collection and archiving of data that shows who was on each project (and when) will help support general contractors and limit costly … By Dallas Hammer and Katherine Krems. Employers are now liable for unpaid overtime wages plus liquidated damages and interest. The pay transparency law is one of the many substantial changes Virginia has made to its discrimination, minimum wage, wage theft, and employee misclassification laws thus far in 2020. Prior to the amendments, wage theft by employers in Virginia was prosecuted by state labor agencies and recovery was limited to the stolen wages and prejudgment interest. 801 Cherry Street, Suite 2365 The Wage Theft Law also expands the relief available to prevailing plaintiffs and their attorneys, incentivizing state law wage and hour lawsuits against employers. The attorneys listed on this site are NOT board certified. “The law passed on the right to the worker, not the company. See McGuireWoods alerts discussing LGBTQ Notably, the enactment of HB 123 and SB 838, known as the Wage Theft Law, for the first … If, during the course of an investigation into an employee’s complaint of an employer’s failure to pay wages, the Department of Labor and Industry obtains information that gives it a “reasonable belief” that the employer failed to pay wages to other employees in accordance with the law, the department may expand its investigation. RICHMOND—Governor Ralph Northam has signed nearly two dozen new laws to support working Virginians, including legislation to combat worker misclassification and wage theft, ban workplace discrimination, and prohibit non-compete covenants for low-wage workers.. 40.1-29. Virginia labor laws have historically been friendly to employers. Virginia’s new Wage Payment Act provides significant protections for Virginia employees against unlawful wage theft, whether through an employer’s refusal to pay overtime or a refusal to pay the minimum wage. New Provisions Specific to Contractors: The Wage Theft Law imposes additional obligations on general contractors of large multiresidential or commercial construction contracts (i.e., greater than $500,000). HB 123/SB 838(Wage Theft Law) creates a private right of action for employees to sue their employers for allegedly unpaid wages. Among the most significant changes are these: In addition, the Virginia labor agencies have been given expanded powers. Broadened Authority To Investigate Wage Theft Claims: House Bill 336 / Senate Bill 49 allows the Virginia Department of Labor and Industry (“DOLI”) to investigate employers’ failure to pay wages in accordance with the VWPA. This summer, members of the Eastern Atlantic States’ Regional Council of Carpenters, the local carpenters union, began holding signs on VCU’s campus, accusing the university of wage theft. New legislation signed into law this year, however, significantly changes a worker’s right to redress in an area of keen importance to household employers – namely wage theft.. New Minimum Wage and Overtime Laws Further Expand Virginia Employee Rights. However, the Wage Theft Law now excuses the employer from criminal liability if the employer’s failure to pay wages was due to a bona fide dispute between the employer and employee. We are a law firm committed to representing and advocating for employees’ rights in the workplace. Not paying the overtime premium for hours worked over 40. The information on this website is informational and you should not rely on it instead of legal advice specific to your situation. CASES Virginia Stat. While some wage deductions are acceptable under the law, some items may be considered illegal wage deductions in Virginia. A “wage theft law” that went into effect in July improved workers’ ability to sue employers over wage theft by amending existing employment laws. WHY US On April 12, 2020, Virginia Gov. The old version of the law failed to punish employers that did not properly pay wages that were due. Since the Wage Theft Law allows for the availability of increased damages for prevailing employees, it could bring an onslaught of new claims in Virginia. Wage theft occurs when unethical employers break either federal or state laws by: Not paying the minimum wage. The subcontractor’s employees may recover their unpaid wages, an equal amount of liquidated damages, attorney’s fees and, if applicable, treble damages, jointly and severally against the general contractor and subcontractor. Prior to the amendments, wage theft by employers in Virginia was prosecuted by state labor agencies and recovery was limited to the stolen wages and prejudgment interest. Not … In April 2020, Governor Northam signed Senate Bill 838 and House Bill 123, which amend the Virginia Wage Payment … Below is a summary of some of the new laws’ key provisions. This website is ATTORNEY ADVERTISING and Drew N. Herrmann is the attorney responsible for the content on this site. Virginia has enacted important amendments to the state’s wage payment laws that drastically strengthen employees’ ability to confront wage theft. The major components of the new Virginia wage theft legislation are as follows: Under House Bill 123, if a court determines an employer deliberately failed to pay an employee’s appropriate wages, the employee could be entitled to attorneys’ fees in addition to triple the amount of wages … Fort Worth, Texas 76102, SUBMIT YOUR CASE Expanded Investigatory Authority: HB 336 and SB 49 greatly expand the Department of Labor and Industry’s right to investigate employee wage complaints. On April 12, Virginia Governor Ralph Northam approved HB 123/SB 838, known as the Wage Theft Law. If the amount of wages owed is less than $10,000, employers can be found guilty of a misdemeanor. On April 12, 2020, Virginia Gov. In federal court, many employers prevail on motions for summary judgment, thus avoiding the risks of a jury trial. Virginia’s regular 2020 legislative session enacted many new laws All Rights Reserved ©, Even Illegal Businesses Must Adhere to Overtime and Wage Laws, Unpaid Overtime and Other Wage Theft Violations, FAQ: Being Paid Accrued, Unused Vacation Days Upon Termination, Virginia Workers now have what is called a “private right of action,” that is, workers can file lawsuits directly against their employers seeking to recover unpaid wages through the court system, Workers who succeed in recovering unpaid wages can recover their attorneys fees, that is, employers will be required, potentially, to pay the attorney’s fees of workers who sue, In addition to money damages paid to workers, employers can also be assessed a civil penalty of $1,000 per violation (payable to the state), Workers are now able to recover treble damages if the wage theft was done “knowingly” — “knowingly” is defined as having actual knowledge, willful blindness or reckless disregard, Workers are now protected from retaliation by their bosses if they report wage theft or file a lawsuit against their employer for unpaid wages; claims of retaliation, however, can only be filed administratively, With respect to construction workers, the General Contractor (“GC”) will now be considered the “employer” if the GC knew or had reason to know that a subcontractor was stealing wages; this means workers can sue the GC for wage theft and the GC will be jointly and severally liable under the new law. If the amount owed is more than $10,000, or if an employer has similar previous offenses, that employer can be found guilty of a felony and subject to a corresponding prison sentence. If you believe your employer is unfairly docking your pay, you should consult with one of our experienced wage theft attorneys at the Spiggle Law Firm. Last updated: July 11th, 2020. Ralph Northam signed a series of new employee protection laws related to employee unpaid wage complaints. For some businesses too small to be covered by this federal law, the Virginia Minimum Wage Act sets a minimum wage … The Labor & Employment Lawyers at Herrmann Law represent clients across the United States and across the state of Texas including: Fort Worth, Arlington, Bedford, Euless, Grand Prairie, Denton, Lewisville, Dallas, Garland, Irving, McKinney, Plano, Frisco, Mesquite, Carrollton, Richardson, Tyler, Lubbock, Amarillo, Wichita Falls, Waco, College Station, Houston, Killeen, Pasadena, The Woodlands, Pearland, San Antonio, Austin, Round Rock, El Paso, Corpus Christi, Laredo, McAllen, Brownsville, Beaumont, Midland, Odessa, Abilene, San Angelo, and all other cities and counties across the state of Texas. That means we may disclose unsolicited emails and attachments to third parties, and your unsolicited communications will not prevent any lawyer in our firm from representing a party and using the unsolicited communications against you. Employers in Virginia are obligated to follow certain rules mandated by the Fair Labor Standards Act, and violations are treated seriously. Virginia Enacts New “Wage Theft Law,” Creating Private Right of Action for Unpaid Wages. © Copyright 2018 All Rights Reserved by Herrmann Law, PLLC. This significantly expands the department’s investigatory authority and inflates the risk to employers, as a single complaint could result in a sitewide or even statewide investigation with commensurate recovery and penalties. protecting employee rights. If your employer has not paid you properly or on time, you may be entitled to recover not only your unpaid wages, but also penalties intended to punish your employer for wage theft. See our articles for details: Virginia Minimum Wage Increase Will Take Effect on May 1, 2021; Virginia to Gradually Raise Minimum Wage The Wage Theft Law expands the remedies available to the employee. Absent this procedural option in state court, Circuit Courts will likely see an influx of wage and hour claims and an increase in the number of wage and hour trials. If an employer is found to have misclassified a worker or a group of workers as independent contractors, the employer could be responsible for paying (1) wages owed, (2) liquidated damages equal to the wages owed, and (3) the plaintiff’s … Wage theft is the illegal underpayment or nonpayment of a worker’s wages. Read below to learn more about wage payment laws in Virginia. New Anti-Retaliation Provisions: HB 337 and SB 48 protect employees who report wage theft or file suit against their employer for unpaid wages from retaliation. A misdemeanor conviction carries a potential jail term of up to 12 months; a felony conviction can result in a jail term of more than a year. Before this law, employees could only file a claim with the Virginia Department of Labor and Industry. Moreover, HB 337 and SB 48 protect from retaliation those employees who report wage theft or file suit against their employer for unpaid wages. Governor Northam Signs New Laws to Support Virginia Workers. Wage theft happens in a variety of ways. Under the amended wage theft law in Virginia, signed in April 2020, Virginia employers now have reason to fear substantial legal and financial consequences for stealing wages. Finally, the new law enhances potential criminal penalties for wage theft where the theft was done “willfully and with the intent to defraud.” This is a higher standard than “knowingly.” Employers who intentionally steal wages can be found guilty of a misdemeanor (for amounts less than $10,000) and for a felony (for amounts higher than $10,000). Please note that unsolicited emails and attached information sent to McGuireWoods or a firm attorney via this website do not create an attorney-client relationship. We may not respond to unsolicited emails and do not consider them or attached information confidential. Employees who are suspended or resigns due to a labor dispute (strike) Virginia has no law regarding when an employer must pay an employee who has resigned due to a labor dispute. Virginia’s “Wage Theft Law” Authorizes Threefold Liquidated Damages and FLSA-Styled Collective Action Treatment of Employees’ Claims In HB 123, the “Wage Theft Law” creates a novel, private right of action for employees to sue employers for unpaid wages. WHAT WE DO Previously, a Virginia employee had no private right of action in Virginia courts. The amount of the civil penalty is determined based on the employer’s size and the gravity of the violation. This new law, which becomes effective on July 1, 2020, dramatically alters Virginia’s wage and hour landscape in the following ways: New Private Right of Action: Currently, Virginia employees cannot sue their employers directly for … Wage theft—the practice of employers unfairly compensating their employees—is a serious offense, and unfortunately a common one as well. If the court finds that the employer “knowingly” failed to pay wages to the employee, the Wage Theft Law permits recovery of treble damages and the imposition of a civil penalty not to exceed $1,000 per violation payable to the Virginia State Treasurer. For further information or questions about the statute, or for any questions regarding employment laws applicable to Virginia employers, please contact the authors, your McGuireWoods contact or a member of the firm’s labor and employment group. The new wage theft law also has “teeth” in that it grants all Virginia employees the right to file suit against their employer, individually or collectively, to recover unpaid wages. Wage theft is the broad term that included unpaid overtime, failure to pay for all hours … Lawsuits allege wage theft by subcontractors on some of Virginia’s major construction projects, including the new Virginia General Assembly building in Capitol Square. Unfortunately, these laws have had minimal effect because they misunderstand the nature of the problem: the probability of being caught for wage theft is so low that it makes economic sense for employers to commit wage theft on a massive scale. The department may broaden its investigation to include additional employees (whether or not those employees have actually made a complaint of nonpayment of wages), and violations not previously asserted by the employee who filed a complaint. The new wage theft law also has “teeth” in that it grants all Virginia employees the right to file suit against their employer, individually or collectively, to recover unpaid wages. Before this law, employees could only file a claim with the Virginia Department of Labor and Industry. Notably, the enactment of HB 123 and SB 838, known as the Wage Theft Law, for the first time creates a private right of action for Virginia employees to sue for allegedly unpaid wages. In Virginia, state and federal laws determine how much you must be paid, when you must be paid, and more. Ralph Northam signed a series of new employee protection laws related to employee unpaid wage complaints. Use our Online Contact page or call us at (817) 479-9229. COMMON VIOLATIONS €Before this law, employees could only file a claim with the Virginia Department of Labor and law banning the box for simple marijuana possession, sweeping employment Importantly, “knowingly” does not require proof of intent to defraud; actual knowledge, deliberate ignorance and reckless disregard are each sufficient to establish that the employer acted “knowingly.”. 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. The Wage Theft Law grants all Virginia employees the right to hold employers accountable in court, along with other rights. Now, investigations can be expanded beyond an individual worker to suspected wage theft violations with respect to any and all employees at a given workplace. The old version of the law failed to punish employers that did not properly pay wages … As such, Virginia employees were often victimized and without proper recourse to recover their wrongfully withheld wages. We are proven, experienced, employee-focused attorneys representing workers across the United States in all types of workplace disputes. protections added to the state’s anti-discrimination law, a law LEGAL CENTER reforms that include new noncompete restrictions, and a new law that expands the /wp-content/uploads/2018/10/logo-406-x-331.png, https://paycheckcollector.com/wp-content/uploads/2020/11/virginia-wage-theft-scaled.jpg, Copyright Herrmann Law. Now, an employee may file suit individually, jointly with other aggrieved employees or on behalf of similarly situated employees as a collective action in Virginia state court. After hearing compelling arguments made by FH+H attorneys, the court allowed it to move forward. (Photo: 8News) In the event the general contractor knew or should have known a subcontractor was not paying its employees all wages due, the Wage Theft Law deems the general contractor an “employer” of its subcontractors’ employees for purposes of the statute. This change is significant because of the very limited ability to obtain summary judgment under Virginia civil procedure. As it did previously, the Wage Theft Law also carries potential criminal penalties for violations made willfully and with the intent to defraud. In addition to recovery of all wages owed plus 8 percent pre-judgment interest, the Wage Theft Law permits recovery of liquidated damages in an amount equal to the wages owed and reasonable attorney fees and costs. Virginia recently enacted significant amendments to its wage payment laws. The defendant asked the court to dismiss the complaint. Along with a number of other employer friendly laws passed this summer (Values Act and Wage Theft Law), Virginia has joined Maryland in prohibiting non-compete agreements with certain “low” wage workers.What is a non-compete agreement? Under the new law, a “covenant not to compete” or non-compete agreement is an … Stealing workers’ tips. rights of pregnant workers in the state. This is a first of its kind in Virginia. Wage theft is prohibited by federal law and several states have enacted additional state laws that are designed to further prevent and stop wage theft. Previously, the labor agencies were limited to investigating individual complaints that were filed by workers. Thus, employers rarely faced wage and hour lawsuits in state court. “If an undocumented worker goes on a job site, they should be protected under the law,” said Frank Mahoney, … 838) amending Virginia’s wage payment statute (Va. Code § 40.1-29). combating independent contractor misclassification, a Notably, the enactment of HB 123 and SB 838, known as the Wage Theft Law, for the first time creates a private right of action for Virginia employees to sue for allegedly unpaid wages. An employer may not discharge or in any other manner discriminate against an employee for filing a complaint, instituting a proceeding or testifying in a proceeding for nonpayment of wages. New Remedies: Previously, Virginia law permitted an employee to recover all wages due plus pre-judgment interest. The labor regulators can expand an investigation where evidence is uncovered that creates a “reasonable belief” that wage theft is more widespread than just the reported incident described in the complaint. Respond to unsolicited emails and do not create an attorney-client relationship expected create... Law Governor Northam Signs new laws to Support Virginia workers based on right. 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