RICHMOND - Despite a gubernatorial veto, Virginia's new minimum wage will take effect on Jan. 1.
The Virginia Legislature reenacted the Virginia Minimum Wage Act in 2020, including a minimum wage of $12 per hour and a percentage of the changing consumer price index.
The new minimum wage of $12.41 per hour will be effective Jan. 1, according to the Virginia Department of Labor and Industry hourly minimum wage update.
Governor Glenn Youngkin vetoed the wage increase in April, saying the eventual $15 an hour requirement "imperils market freedom and economic competitiveness." Since then, Youngkin has announced his intention to eliminate state taxes on tips in the upcoming budget. Senator Mark Obenshain recently filed legislation to support the elimination of state taxes on tips.
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The per captia, or per person, income in the past 12 months, in 2023 dollars, was approximately $36,000 for Staunton, $32,000 for Waynesboro, and $38,000 for Augusta County, according to the 2023 estimates from the U.S. Census Bureau. If the income is assumed to be for full time employment at 40 hours, which is not offered by every job, these salaries come in at $17.31 in Staunton, $15.38 for Waynesboro, and $18.27 for Augusta County.
By the federal guidelines and according to the census bureau, the poverty rates are 12.6% in Staunton, 11.7% in Waynesboro, and 8.2% in Augusta County. According to the federal guidelines, a single person household is in poverty when they make below $15,060. However, the federal poverty guidelines are not the only standard to measure if a family is doing well financially. In a report to Staunton City Council last year, the Staunton Diversity, Equity, and Inclusion Commission found one in three Staunton residents live in poverty based on the asset limited, income constrained, employed (ALICE) poverty guidelines.
The new minimum wage is not expected to significantly impact Staunton, Augusta County, or Waynesboro government workers.
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Waynesboro City Manager Michael Hamp confirmed that no city employees were paid below the new minimum wage. It is the same for Staunton and Augusta County.
"Fortunately, this will not have any impact on our county employees," wrote County Administrator Timothy Fitzgerald. "Our budget is good as well."
Augusta County Public Schools Superintendent Eric Bond said the schools made "appropriate adjustments" to employee salaries "several years ago in anticipation of this requirement." Waynesboro Superintendent Jeff Cassell also said it would not affect Waynesboro's education employees.
The only board expecting to make changes as a result of the new minimum wage is Staunton.
"SCS is aware of the minimum wage increase of $12.41 effective January 1, 2025 and will make the necessary changes to comply with the new law," said Staunton Superintendent Garett Smith. "The increase will have a negligible impact on our FY25 budget and beyond."
Lyra Bordelon (she/her) is the public transparency and justice reporter at The News Leader. Do you have a story tip or feedback? It's welcome through email to [email protected]. Subscribe to us at newsleader.com.