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New Virginia Overtime Wage Act took effect July 1, 2021

From: Human Resources

The new Virginia Overtime Wage Act (the Act) that went into effect 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 worked in excess of 40 in a workweek.

The Act also eliminates the provision to allow employees to accrue compensatory leave (comp time). The only exceptions to this new overtime compensation rule are for law enforcement and fire suppression employees.

Employees who previously earned compensatory leave prior to July 1, 2021 will be able to use the existing leave until it is exhausted. Accrued compensatory time will not be paid out as a result of these changes.

Because the Act takes effect during the June 25 – July 9 salary pay cycle, salaried non-exempt employees will see the following:

  • Overtime worked up to the week ending June 25 will be accrued as compensatory leave.
  • Beginning the workweek of June 26 - July 2, any hours worked in excess of 40 will be compensated at the rate of time and a half on the July 30 paycheck.
  • The July 30 check will also include payment for any overtime worked during the week of July 3 – 9.

Going forward, overtime pay will be processed on a monthly basis and will be paid on the paycheck issued on the first of each month or on the last business day of the prior month, depending on the calendar. This change should not impact hourly wage employees using the TimeClock Plus System to record hours worked.

Frequently asked questions about these overtime compensation changes are available on the HR site. If you have additional questions, contact your college or department HR representatives or the HR Leave Team at hrleave@vt.edu

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