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New Virginia Overtime Wage Act impact on overtime compensation

Editor's Note:  The Virginia Overtime Wage Act (VOWA), that was effective July 1, 2021 (requiring compensation for overtime hours and eliminating the accrual of compensatory leave), was amended as of Aug. 9, 2021. Effective Aug. 10, 2021 the amendment reinstates the option to allow compensating hours worked in excess of 40 by non-exempt employees at a time and a half of the regular hourly rate OR to allow leave accrual at the time and a half rate. Read the updated notice here.

From: Human Resources

The new Virginia Overtime Wage Act, effective July 1, 2021, requires that employers in the Commonwealth of Virginia compensate non-exempt employees at a time and a half hourly rate for hours physically worked in excess of 40 in a workweek. This act eliminates the provision to allow employees to accrue compensatory leave. The only exceptions to this new overtime compensation rule are for law enforcement and fire suppression employees.

This change does not affect compensatory leave balances earned before July 1, 2021. Employees will continue to be able to use previously earned compensatory leave.

Over the coming weeks, the Leave and Time Worked Reporting System will be updated to reflect these changes. This change should not impact hourly wage employees using the TimeClock Plus System to record hours worked.

More information on recording overtime will be forthcoming. In the meantime, questions should be directed to college/department HR representatives or the HR Leave Team at hrleave@vt.edu

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