Authorized Deductions

• Employers can only deduct from their employees' paychecks for taxes, authorized garnishments and any other deductions made after their employees give them written consent. Employers cannot coerce employees to consent to deductions, and involuntarily induced consent is illegal. Employers can never deduct wages to cover cash-register shortages or damaged equipment fees; they can't even do this if the employee approves it. In fact, the Virginia code makes it illegal for employers to ask for consent for such practices.
  
  

Wage Payments

• The Virginia Payment of Wage Law requires employers to establish regular pay rates and pay dates for their employees. They must pay their hourly employees at least bi-weekly or semi-monthly, and salaried employees must receive their paychecks at least once a month. The paycheck timing law does not apply to high-level or executive employees. Final wages are due by the next payday if employers terminate their employees or employees voluntarily quit their jobs. Final pay must include all overtime hours worked and non-overtime hours worked. Virginia follows the United States Department of Labor's overtime laws, and employers must compensate their employees with overtime compensation at 1.5 times an hourly employee's pay rate for work exceeding 40 hours a week.
  
  

Reduced Wages and Fringe Benefits

• Employers can reduce an employee's compensation rate if the new wage is not below federal minimum wage or Virginia minimum wage of $7.25 per hour -- the rate as of 2011. Before reducing wages, employers must notify their employees of their rights to continue working at the new hourly rate or to terminate employment, and employers must not authorize or allow continued work until they provide this notification. Employers do not have to pay their employees for fringe benefits including paid vacation, paid sick days, paid retirement or severance pay unless required by the terms of existing private employment or collective bargaining contracts. For violations alleging breach of contract law, employees must pursue their claims in court.
  
  

Penalties

• Employers who do not comply with the state payday and wage compensation laws face penalties of up to $1,000 for each violation. Failure to pay their employees by withholding wages is a separate offense, and an employer found to be in willful violation faces imprisonment and fines of up to $2,500. Additionally, employers may have to pay their employees damages of all unpaid wages plus an addition 8 percent interest penalty from the date they owed those wages.
  
  

Considerations

• Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.