Virginia, historically reliant on the federal Fair Labor Standards Act to govern overtime obligations, passed its first standalone overtime law in March 2021. The Virginia Overtime Wage Act (VOWA) went into effect on July 1, 2021, amidst wide-spread confusion among Commonwealth employers over the law’s requirements.
While Virginia’s Department of Labor and Industry rolled out informal guidance to clarify employer obligations under the new law, that guidance did little to assuage employer concerns over the VOWA’s many ambiguities.
A year later, Virginia employers are being given a reprieve from the many compliance concerns and increased exposure to liability created by the 2021 law. On April 11, 2022, Governor Glenn Youngkin signed into law HB 1173 (SB 631), rolling back the provisions of the VOWA and realigning Virginia’s overtime obligations and exemptions with those of the federal FLSA.