What is the penalty for not paying employees the minimum wage?

In Virginia, businesses must pay employees at least the minimum wage, which is $7.25 per hour. Not paying employees the minimum wage is a violation of Virginia law and of the federal Fair Labor Standards Act (FLSA). The federal government sets the minimum wage for the entire country, but states can have higher minimum wages. Violations of minimum wage laws can be reported to the Virginia Department of Labor and Industry or the federal Department of Labor. The penalties for not paying employees the minimum wage can be severe and can include civil and criminal penalties, back pay, damages, and other measures. When employers are found to have violated minimum wage law, they may be required to pay back wages, interest on those wages, and Civil Money Penalties (CMP) of up to $1,100 per violation. Employers who willfully and repeatedly violate minimum wage laws may also be subject to criminal penalties, including fines and/or imprisonment. Penalties for criminal violations are much more severe and can reach $10,000 per violation. Finally, civil penalties may also be imposed for failing to keep adequate records or for retaliating against employees who report wage violations. Thus, in Virginia, employers who do not pay employees the minimum wage face significant fines and other penalties. It is important for employers to understand and comply with minimum wage laws in order to avoid these consequences.

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