What are the consequences of not paying employees the minimum wage?
Not paying employees the minimum wage is considered wage theft and is illegal in Virginia. If an employer is found to have not paid their employees the minimum wage, they will face serious consequences. The most significant consequence is likely to be fines and penalties. Employers found to have not paid their employees the minimum wage could be subject to both criminal and civil penalties. Penalties can range from a warning and fines of up to $1,000 for each violation, to up to one year in prison and/or a fine of up to $10,000 for each offense. In addition to fines and penalties, employers that do not pay their employees the minimum wage may be required to pay back wages and other damages to the employee. This can include double damages, liquidated damages, or both. If the employee has been the victim of intentional wage theft, they could also sue for punitive damages. Employers who do not pay their employees the minimum wage could also face legal action from the Virginia Department of Labor and Industry. The Department may also impose an injunction against the employer to stop further violations and require them to pay any unpaid wages. In the end, not paying employees the minimum wage can have serious consequences for employers in Virginia. Not only could they face fines and penalties, but they could also be sued for back wages and damages, which could be significant. Employers should make sure they are always following Virginia’s wage and hour laws to avoid any legal trouble.
Related FAQs
What are the restrictions on paying workers under the age of 18?Are employers required to provide a rest break and/or meal break?
How are breaks and overtime calculated?
Are employers allowed to set different work hours for different employees?
Are employers allowed to pay employees differently based on their education level?
What are the consequences of not paying employees the minimum wage?
What is the difference between a collective bargaining agreement and a wage and hour law?
When can an employer legally deduct wages from an employee's paycheck?
How should employers calculate overtime pay for employees who work multiple jobs?
Are employers allowed to require employees to sign a non-compete agreement?
Related Blog Posts
What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023