Virginia Plans Minimum Wage Increase to $12.77 in 2026

The Virginia Department of Labor and Industry announced that the state's minimum wage will increase from $12.41 to $12.77 per hour, effective January 1, 2026. This 2.9% increase is tied to the rise in the U.S. Consumer Price Index for 2024, as mandated by Virginia law, which requires annual adjustments based on inflation. The minimum wage applies to most employees, including full-time, part-time, and temporary workers, with some exemptions for seasonal and specific jobs. Virginia's Minimum Wage Act aims to gradually adjust wages in response to economic conditions, ensuring the state remains attractive for businesses and workers. Additionally, the state’s unemployment rate has risen to 3.5%, the highest since August 2021, partly due to federal workforce reductions and economic uncertainties, although it remains below the national rate. Resources like Virginia Career Works are available to assist those affected by job losses during this period.