Virginia is on the verge of accelerating the growth of its minimum wage.
Legislation that has passed both chambers of the state legislature (HB 1 in the House of Delegates and SB 1 in the Senate) would raise the state minimum wage to:
- $13.75, effective January 1, 2027; and
- $15.00 per hour, effective January 1, 2028.
Starting January 1, 2029, and every January 1 thereafter, the minimum wage would be adjusted for inflation based on the US Consumer Price Index for All Items, All Urban Consumers (CPI-U). (Under current law, annual inflation adjustments would resume January 1, 2027.)
The following chart shows the projected change in the trajectory of the state minimum wage based on 2.54% annual inflation adjustments, which is the average annual change in the CPI-U during the past 25 years:
The legislation soon will be delivered to the desk of Gov. Abigail Spanberger, who said in a statement that she plans to sign it into law.
In related news, bills that would eliminate the minimum wage exemptions for farm workers and certain temporary foreign workers (HB 20 in the House of Delegates and SB 121 in the Senate) also are advancing through the legislature. Spanberger does not appear to have indicated whether or not she would sign such a measure into law.
