Category Archives: Fair Labor Standards Act

Virginia Passes Legislation to Allow Employees to Sue for Unpaid Wages and Triple Damages

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By John V. Berry, www.berrylegal.com

New legislation has been passed in Virginia to protect employees from employers that do not pay wages that are owed.  If Virginia House Bill 123 is either signed by Governor Ralph Northam or not acted upon by April 11, 2020, employees will have new rights to pursue unpaid wages. Virginia House Bill 123 has been passed by both the Virginia House and Senate. The new law would create a new right to sue in the collection of unpaid wages in Virginia. Virginia House Bill 123 also allow employees the right to seek triple damages and other remedies.

New Employer Damages and Penalties

Virginia House Bill 123 enables Virginia employees to bring suit against employers that fail to pay wages and also allows them to recover their wages owed, plus 8% interest from the date that the wages were due. In addition, Employees may awarded triple damages (three times the amount of their unpaid wages), attorney’s fees and/or other costs if a court finds that the employer knowingly failed to pay the wages that were due. There is also a $1,000 civil penalty against the employe for a violation.

Hypothetical: Under the new law, for example, if an employer fails to pay an employee $2,000 that is earned, they could be liable for that amount, plus 8%, potentially 3 times the wages that were not paid and attorney’s fees incurred by the employee. The $2,000 that was unpaid could easily become a judgment against the employer for $5,000 to $10,000 by the time damages, attorney’s fees and civil penalties are included. 

Potential Employer Criminal Penalties

In addition to civil penalties, there are also criminal law penalties in the new legislation. Employers can be found guilty of a misdemeanor, punishable by up to 12 months in jail, if the wages owed are less than $10,000. Employers are to be considered guilty of a felony, punishable by a prison term of up to five years, if the value of unpaid wages is at least $10,000 or if the employer previously has a prior conviction involving a similar wage issue.  Criminal liability now only applies if the non-payment of wages was willful with the intent to defraud. If Virginia House Bill 123 is signed or otherwise allowed to become law, it would be effective on July 1, 2020.

Conclusion

If you are in need of employment law representation or advice, please contact our office at 703-668-0070 or through our contact page to schedule a consultation. Please also visit and like us on Facebook or Twitter.

Final Paychecks Owed to Former Employees in Virginia

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By John V. Berry, Esq.,www.berrylegal.com

In the Commonwealth of Virginia former employees are entitled to all of their previously earned wages, even if they are terminated from their employment. However, for various reasons sometimes employers attempt to avoid paying an employee their last paycheck. There are many reasons that this occurs. However, the nonpayment of wages owed can cause significant hardship for an employee and can be a costly mistake for an employer. There are laws and regulations that govern the issues related to the nonpayment of wages in the Commonwealth of Virginia at the state and federal levels.

When Last Paychecks are Due

An employer generally should pay a former employee’s final paycheck by the next pay period as it would be regularly due.  Some state laws vary on this issue, but failure to make prompt payment can violate a number of wage and overtime laws on a state and federal level.  State wage laws can cover non-payment and federal laws, such as the Fair Labor Standards Act (FLSA), can cover non-payment of overtime.

Virginia Wage Law

The Virginia Code § 40.1-29 provides that final payments to a terminated employee should be made on or before the employee would have normally been paid had the employee not been terminated. The Virginia Code imposes civil and criminal penalties for nonpayment of wages by an employer. The Virginia Code further prohibits employers from deducting portions of a final payment without the former employee’s consent with the exception of standard taxes and withholdings.

A number of state vary on the issue of whether an employee is entitled to receive accrued vacation or sick leave upon an employee’s departure. Virginia has taken the approach that fringe benefits such as vacation/annual/holiday leave, sick leave or severance pay are not required to be paid out by a former employer under the law. In addition, Virginia employers may establish any policy or no policy regarding fringe benefits at the termination of an employee.

If an employee in Virginia is confronted with nonpayment of final wages, the employee can contact the Virginia Department of Labor and Industry. The Virginia Department of Labor and Industry may assist an employee in obtaining payment of final wages after the employee files a complaint, but it does not handle claims for wages over the amount of $15,000.  Additionally, the failure to pay wages can be pursued in the court system.

Federal Wage Law

The FLSA is a federal law which governs the payment of overtime to employees.  When an employer does not make timely payment of a final check which includes overtime, there could be a FLSA violation which could be costly for an employer in terms of damages. If the payment of lost wages involves unpaid overtime, the United States Department of Labor, Wage and Hour Division may be contacted and an investigation may be initiated for FLSA overtime violations by the former employer. Additionally, the failure to pay overtime can also be pursued in court.

Conclusion

We represent employees and employers in regards to non-payment of wage cases.  If you need legal assistance, please contact our office at (703) 668-0070 or at www.berrylegal.com to schedule a consultation.  Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.