HB1355 would substantially revise Virginia’s wage-payment law, § 40.1-29, governing when and how employers must pay employees. The bill keeps the current framework for regular pay periods and permitted payment methods, but it expands and clarifies employee protections around wage withholding, pay statements, and wage recovery. It also expressly defines “wages” broadly to include salaries, commissions, bonuses, tips, back pay, severance, and other remuneration, and it sets a three-year limitations period for actions under the section.
The bill would strengthen enforcement by creating or expanding civil and criminal consequences for nonpayment of wages, including misdemeanor and felony penalties for willful, fraudulent nonpayment, civil penalties for knowing violations, liquidated damages, prejudgment interest, attorney’s fees, and a private right of action that can proceed individually, jointly, or as a collective action. It also authorizes the Commissioner of Labor and Industry to pursue complaints, collect unpaid wages, and use private counsel after final orders, while allowing courts and the Commissioner to record and enforce final orders like circuit court judgments. The bill states that it is intended to reverse the Virginia Supreme Court’s decision in Groundworks Operations, LLC v. Campbell.
The bill’s impact on state law would be significant because it would alter both the remedies and the enforcement structure for wage claims in Virginia. Employers would face greater exposure for late or unpaid wages, including potential treble damages for knowing violations, and employees would gain clearer statutory rights to sue and recover fees and costs. The measure would also affect payroll practices, wage deductions, paystub disclosures, and the use of prepaid debit cards for wage payment.
The general sentiment reflected by the bill text and context is pro-worker and enforcement-oriented, with no recorded committee debate or votes available in the provided materials. The bill appears designed to respond directly to a recent court decision and to restore or expand employee remedies for unpaid wages. Because it was left in the Labor and Commerce committee, the available record suggests it did not advance, but there is no transcript evidence here showing opposition or support.
The main points of contention likely center on the bill’s expanded liability for employers, especially the new private right of action, collective-action procedures, treble damages for knowing violations, and the ability to recover attorney’s fees and costs. Employers may also object to the broader definition of wages, the enforcement powers granted to the Commissioner, and the bill’s explicit effort to override the Groundworks decision. Supporters would likely emphasize stronger wage theft enforcement, faster recovery for workers, and clearer statutory protections.
HB1355 would amend § 40.1-29 of the Code of Virginia to expand and clarify wage-payment requirements, employee wage-statement rights, and enforcement remedies. It would increase employer liability for unpaid wages, authorize stronger administrative and judicial enforcement, and create a broader private cause of action with liquidated damages, interest, attorney’s fees, and potential treble damages for knowing violations. It also defines wages broadly and expressly targets the reversal of Groundworks Operations, LLC v. Campbell.
The bill appears generally worker-protective and enforcement-focused, aiming to strengthen wage-payment rights and remedies. No committee transcript or vote record is provided, so there is no documented floor or committee debate in the supplied materials. The fact that it was left in Labor and Commerce suggests it did not move forward, but the available context does not show recorded support or opposition.
The likely controversy is over the bill’s expanded penalties and litigation tools for employees, including collective actions, treble damages, attorney’s fees, and administrative enforcement authority. Employers may view these provisions as increasing compliance costs and litigation risk, while worker advocates would likely support them as necessary to deter wage theft and ensure timely payment. The bill’s stated purpose of reversing a recent Virginia Supreme Court decision is also a notable point of contention, as it signals a direct legislative response to judicial interpretation.