Alert for Virginia Employers — Payment of Wages

January 19, 2010

The Virginia wage payment law has been revised, effective January 1, 2010. Currently VA Employers can pay employees by cash, check, payroll card or direct deposit as directed by the employee.

Under the new law, an employer can elect not to pay wages or salaries by cash or check to employees hired after January 1, 2010, and require that these employees receive their pay by direct deposit or by payroll card. Should the employee fail to designate a financial institution for the direct deposit of his or her wages, the employer may pay the employee by payroll card. The employer must arrange for payroll cards to be issued through a network that allows employees to make at least one free withdrawal or transfer per pay period, and the withdrawal or transfer may be for any sum as the employee may elect.

Employees hired before January 1, 2010 will continue to be paid by cash, check, direct deposit, or by payroll card. Payment to these individuals by direct deposit or payroll card will continue to require the affirmative consent of the employee.

Should you have questions about wage payment matters or other human resource issues, you may contact SESCO at 423-764-4127 or by email at sesco@sescomgt.com.