New Virginia laws going into effect in 2025
Virginia's new year, new laws: Changes coming in 2025
RICHMOND, Va. - As the calendar flips to 2025, Virginia residents and businesses will see several new laws take effect, bringing changes to wages, workplace protections and reporting requirements.
Minimum wage increase
Starting Jan. 1, 2025, Virginia's minimum wage will rise from $12.00 per hour to $13.50 per hour. This increase fulfills a provision in legislation passed in 2020 and is part of a broader plan to reach $15.00 per hour by 2026.
"This wage increase is a critical step toward ensuring fair compensation for Virginia workers," lawmakers said when the phased plan was initially approved.
'Ethnic Origin' now a protected class
The Virginia Human Rights Act has been expanded to prohibit discrimination, harassment or retaliation based on an employee's ethnic origin, defined as the ancestry of a particular ethnic group.
According to the Virginia General Assembly, this addition strengthens protections for employees, ensuring that everyone is treated fairly and respectfully in the workplace. Employers must update their policies and training programs to include this new category.
RetirePath Virginia
The Virginia Capitol during a session of the Virginia General Assembly on Friday, Feb. 24, 2023, in Richmond. (Jay Paul/The Virginian-Pilot/Tribune News Service via Getty Images)
Employers who do not offer retirement savings plans must now participate in RetirePath Virginia, a program designed to provide employees with access to retirement savings accounts. This requirement applies to businesses with 25 or more employees that have been operating for at least two years.
Employees will be automatically enrolled unless they opt out within 30 days and employers who fail to register could face penalties of up to $200 per employee.
Beneficial ownership reporting
Under the federal Corporate Transparency Act, certain businesses must submit Beneficial Ownership Information Reports (BOIR) to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025. The report requires details about individuals with substantial control or a 25% ownership stake in the business.
Failure to comply could result in civil penalties. Businesses are encouraged to determine their reporting obligations and submit the required information promptly.
DOL salary threshold rule nullified
In a significant legal development, a federal court has vacated a Department of Labor (DOL) rule that would have raised the salary threshold for exempt employees under the Fair Labor Standards Act. While the first phase of increases went into effect on July 1, 2024, the U.S. District Court for the Eastern District of Texas struck down the rule in November 2024.
As a result, the planned Jan. 1, 2025, increase is now void, and the July 2024 changes are no longer enforceable. Employers are advised to consult legal counsel to determine how to proceed.
As Virginia residents and employers navigate these changes, compliance with the new laws will ensure smooth transitions and avoid penalties. For more details, visit relevant state or federal agency websites.