Final Paychecks Owed to Former Employees in Virginia
By John V. Berry, Esq.,www.berrylegal.com
In the Commonwealth of Virginia former employees are entitled to all of their previously earned wages, even if they are terminated from their employment. However, for various reasons sometimes employers attempt to avoid paying an employee their last paycheck. There are many reasons that this occurs. However, the nonpayment of wages owed can cause significant hardship for an employee and can be a costly mistake for an employer. There are laws and regulations that govern the issues related to the nonpayment of wages in the Commonwealth of Virginia at the state and federal levels.
When Last Paychecks are Due
An employer generally should pay a former employee’s final paycheck by the next pay period as it would be regularly due. Some state laws vary on this issue, but failure to make prompt payment can violate a number of wage and overtime laws on a state and federal level. State wage laws can cover non-payment and federal laws, such as the Fair Labor Standards Act (FLSA), can cover non-payment of overtime.
Virginia Wage Law
The Virginia Code § 40.1-29 provides that final payments to a terminated employee should be made on or before the employee would have normally been paid had the employee not been terminated. The Virginia Code imposes civil and criminal penalties for nonpayment of wages by an employer. The Virginia Code further prohibits employers from deducting portions of a final payment without the former employee’s consent with the exception of standard taxes and withholdings.
A number of state vary on the issue of whether an employee is entitled to receive accrued vacation or sick leave upon an employee’s departure. Virginia has taken the approach that fringe benefits such as vacation/annual/holiday leave, sick leave or severance pay are not required to be paid out by a former employer under the law. In addition, Virginia employers may establish any policy or no policy regarding fringe benefits at the termination of an employee.
If an employee in Virginia is confronted with nonpayment of final wages, the employee can contact the Virginia Department of Labor and Industry. The Virginia Department of Labor and Industry may assist an employee in obtaining payment of final wages after the employee files a complaint, but it does not handle claims for wages over the amount of $15,000. Additionally, the failure to pay wages can be pursued in the court system.
Federal Wage Law
The FLSA is a federal law which governs the payment of overtime to employees. When an employer does not make timely payment of a final check which includes overtime, there could be a FLSA violation which could be costly for an employer in terms of damages. If the payment of lost wages involves unpaid overtime, the United States Department of Labor, Wage and Hour Division may be contacted and an investigation may be initiated for FLSA overtime violations by the former employer. Additionally, the failure to pay overtime can also be pursued in court.
We represent employees and employers in regards to non-payment of wage cases. If you need legal assistance, please contact our office at (703) 668-0070 or at www.berrylegal.com to schedule a consultation. Please also visit and like us on Facebook at www.facebook.com/BerryBerryPllc.