Hiring Employees in Virginia

Classifying Your Workers Correctly

Your company must distinguish properly between employees and independent contractors under IRS common law tests and Virginia’s wage laws. You should look at behavioral control, financial control, and the overall relationship to decide if a worker is truly independent. Virginia can hold you liable for back wages, unpaid taxes, liquidated damages, and civil penalties if you misclassify workers.

State law creates a presumption that a worker is an employee unless you can prove independent contractor status using IRS guidelines, so you need clear contracts and consistent practices. If you misclassify, you may also face liability for unpaid unemployment insurance, workers’ compensation premiums, and employee benefits – review guidance such as https://www.playroll.com/blog/employee-misclassification-guide before you hire.

Verify Employee Work Eligibility

For every new Virginia hire, you must complete federal Form I‑9 within 3 business days of the employee’s start date. Your employee must present acceptable identity and work authorization documents from the I‑9 lists, and you must examine and record them in person or via an approved remote process. You must retain I‑9s for at least 3 years after the hire date or 1 year after termination, whichever is later.

Virginia currently requires certain public employers and state contractors to use E‑Verify, but most private employers may choose whether to enroll. If you use E‑Verify, you must submit cases within 3 business days of hire and follow federal rules on tentative nonconfirmations and recordkeeping.

Create an Employee Onboarding Process

When you hire in Virginia, you should issue a written offer letter that clearly states pay rate, pay schedule, exempt status, and key policies. You will need to collect federal Form W‑4, Virginia Form VA‑4 for state withholding, direct deposit details if used, and signed acknowledgments for your handbook, at‑will employment, and any arbitration or confidentiality agreements. Virginia also requires you to report new hires to the Virginia New Hire Reporting Center within 20 days.

Make sure your onboarding checklist includes required workplace notices, such as wage payment rights and workers’ compensation information, and provide contacts for reporting safety or harassment concerns. Building a consistent onboarding process also helps you forecast total hiring costs – from wages and taxes to benefits – before you extend an offer.

Pay Frequency & Methods

Virginia law generally requires you to pay most employees at least twice per month, with paydays no more than 16 days apart, while bona fide executive, professional, and administrative employees may be paid monthly. You must pay all earned wages on the regular payday and provide a written statement of gross wages, deductions, and net pay each period. If you terminate an employee, you must pay all final wages by the next regular payday, and failure to pay on time can trigger civil penalties, liquidated damages, and attorneys’ fees.

Payment Methods (How You Can Pay)

You can choose from several compliant payment methods in Virginia, but you must always ensure employees receive full wages on time and can access their pay without unlawful fees or coercion.

• Payroll Check: You may pay by check as long as it is payable at full face value in U.S. dollars and employees can cash or deposit it without employer‑imposed fees.
• Cash: You may pay wages in cash, but you must still provide a written wage statement each pay period and maintain accurate payroll records.
• Direct Deposit (EFT): You can use direct deposit, and you may require it if employees can choose their own financial institution and access wages on the regular payday.
• Paycards: You may pay via payroll cards if employees have fee‑free access to full wages at least once per pay period and receive clear disclosures of any card fees.
• Outsourced Payroll: You can outsource payroll to a third‑party provider, but your company remains legally responsible for accurate calculations, timely deposits, and required filings.

When you employ workers in Virginia, you must withhold and remit federal and state payroll taxes and pay several employer‑only contributions. You will register with the Virginia Department of Taxation and the Virginia Employment Commission before running payroll so you can file returns and send payments on schedule.

Employer Tax Contributions

As a Virginia employer, you are responsible for Social Security and Medicare matching, state unemployment insurance, and any required local taxes. You must obtain a Virginia withholding tax account number and an unemployment insurance account, then file periodic returns even if you have no payroll in a given period.

Employee Payroll Tax Contributions

You must withhold federal income tax, Virginia state income tax, and the employee share of FICA from each paycheck based on the employee’s W‑4 and VA‑4 forms. You then deposit these with the IRS and Virginia Department of Taxation on the required monthly, semiweekly, or quarterly schedules.

Minimum Wage in Virginia

Virginia’s minimum wage is currently $12.00 per hour for most non‑exempt employees, higher than the federal rate. Certain workers, such as tipped employees, farmworkers, and some students, may be subject to different rules, so you should confirm that each role meets any applicable exemption before paying less than the state minimum.

Working Hours in Virginia

Virginia generally follows federal Fair Labor Standards Act rules for scheduling and hours, with no daily maximum but a 40‑hour standard workweek for overtime purposes. You must track hours worked for all non‑exempt employees and pay for all time suffered or permitted to work, including required training and certain travel time.

Overtime in Virginia

Most non‑exempt employees in Virginia must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. You should define your workweek consistently in writing and ensure bonuses, commissions, and different hourly rates are included correctly in the regular rate calculation.

Virginia does not mandate broad private‑sector benefit packages, but offering health insurance, retirement plans, and paid leave helps you stay competitive in a tight labor market. If you average 50 or more full‑time employees nationwide, the federal Affordable Care Act requires you to offer affordable, minimum‑value health coverage or face potential penalties.

Mandatory Leave Policies in Virginia

Paid Time Off in Virginia

Virginia does not require you to provide general paid vacation or PTO, but any written policy or contract you adopt will be enforceable. You should clearly state how PTO accrues, whether there is a cap, and what happens to unused time at termination so employees understand their rights.

Virginia law does not mandate payout of unused PTO at separation, but if your policy or past practice promises payout, you must follow it. To avoid disputes, specify in writing whether unused PTO is forfeited, carried over, or paid out when employment ends.

Maternity & Paternity Leave in Virginia

Virginia relies primarily on the federal FMLA for maternity and paternity leave, providing up to 12 weeks of unpaid, job‑protected leave for eligible employees of covered employers. You must continue group health coverage on the same terms during FMLA leave and restore the employee to the same or an equivalent position upon return.

Virginia’s Human Rights Act requires you to provide reasonable accommodations for pregnancy, childbirth, and related medical conditions, which can include modified duties, schedule changes, or additional breaks. Many employers choose to layer paid parental leave or short‑term disability benefits on top of FMLA to attract and retain talent.

Sick Leave in Virginia

Virginia does not have a broad paid sick leave mandate for all private employers, but it does require paid sick leave for certain home health care workers providing consumer‑directed services. For other employees, you may design your own sick leave or PTO policy, provided you apply it consistently and honor any written promises.

If you offer sick leave, you should define eligibility, accrual rates, carryover rules, and any documentation requirements. Clear communication helps prevent abuse while ensuring employees feel safe staying home when ill, which also supports workplace health.

Military Leave in Virginia

Under federal USERRA and Virginia law, you must grant unpaid leave and job protections to employees who serve in the uniformed services, including National Guard and Reserve duty. Returning service members are generally entitled to reinstatement to the same or comparable position, with seniority and benefits as if they had not been absent.

Virginia also protects members of the state militia and National Guard from adverse employment actions due to required service. You should request and retain appropriate military orders and update your policies to reflect these protections.

Jury Duty in Virginia

Virginia law prohibits you from firing, threatening, or coercing an employee because they are called for jury duty or serve as a juror. You must allow the necessary time off, although you are not required to pay for this time unless your policy or contract says otherwise.

You may request proof of jury service, such as a summons or attendance slip, and you can adjust schedules to minimize disruption. Make sure managers understand that disciplining employees for jury service can lead to civil penalties and legal claims.

Voting Leave in Virginia

Virginia does not require you to provide paid time off specifically for voting, but you cannot prevent employees from exercising their right to vote. Many employers voluntarily offer flexible scheduling on election days so employees can reach the polls before or after work.

Clearly communicating your expectations around scheduling and notice for voting helps you balance business needs with civic participation. Consider aligning your policy with any remote work or flexible hours you already offer.

Bereavement Leave in Virginia

Virginia law does not mandate bereavement leave, so you may decide whether to offer paid or unpaid time off following the death of a family member. Many employers provide 1–5 days of leave depending on the relationship to support employees during grieving and funeral arrangements.

If you offer bereavement leave, define who qualifies as an immediate family member, how much time is available, and any documentation you may require. A clear, compassionate policy can support employee well‑being and reduce confusion during difficult times.

Termination Process

Virginia is an at‑will employment state, so you or the employee may end the relationship at any time for any lawful reason, but you should still follow a consistent, documented process. You should confirm the termination in writing, collect company property, cut off system access, and provide information on final pay, benefits continuation, and any post‑employment obligations.

Notice Period

Virginia law does not require advance notice of termination or resignation, unless you have agreed otherwise in a contract or collective bargaining agreement. Even though notice is not mandated, giving reasonable notice when possible and documenting performance or conduct issues can reduce the risk of disputes.

Severance

Severance pay is not required under Virginia law, but you may offer it by policy or individual agreement, often in exchange for a release of claims. If you provide severance, clearly outline eligibility, calculation methods, and payment timing, and ensure any release complies with federal and state requirements, especially for older workers.