2024 West Virginia Minimum Wage Overview
As of 2024, West Virginia’s minimum wage is set to increase over the next several years, as part of an incremental plan outlined in House Bill 2481. This bill aims to raise the state’s minimum wage in stages, culminating in a rate of $15 per hour by 2028. The current rate of $10 per hour will be replaced by the $11 rate starting December 31, 2024. This gradual increase is designed to help workers while giving businesses time to adjust to the new wage levels.
Additionally, the bill includes provisions for a subminimum training wage. Workers hired after December 31, 2023, may be paid a training wage of $9 per hour. This subminimum wage applies to workers under the age of 22 and can only be used for the first 90 days of employment, allowing new hires to gain experience.
The incremental wage increase plan represents a significant step for workers in the state, and businesses should start preparing for these upcoming changes in labor costs as the state moves toward a $15 minimum wage by 2028.
Understanding US Minimum Wage Tiers
The minimum wage structure in the United States varies from state to state. While the federal minimum wage is set at $7.25 per hour, many states, including West Virginia, have established their own wage standards. States can choose to implement a higher wage than the federal minimum, but they cannot set a lower one. This results in a tiered system.
In states like West Virginia, the state minimum wage has surpassed the federal standard. As mentioned, currently, West Virginia’s minimum wage is $10 per hour (until December 31 2024), and it is set to rise incrementally, with the goal of reaching $15 per hour.
West Virginia Minimum Wage for Workers with Tips
For tipped employees, employers can deduct up to $6.13 per hour from the minimum wage, which reflects the tips that workers earn. This means that tipped employees must receive a base cash wage of at least $2.62 per hour, as long as their tips bring their total hourly compensation to at least $8.75 per hour.
Employers must ensure that the employee’s total hourly pay, including tips, meets or exceeds the minimum wage. If an employee’s tips fall short, the employer is required to make up the difference.
Minimum Wage History in West Virginia
West Virginia’s minimum wage has seen several incremental increases over the years. In 2006, the state’s minimum wage was set at $5.85 per hour, and by 2007, it rose to $6.55 per hour. A year later, in 2008, it matched the federal minimum wage of $7.25 per hour. This rate remained in place until 2014, when the state increased the minimum wage to $8.00 per hour.
In 2015, another adjustment brought the wage to $8.75 per hour. From there, the state has laid out a clear schedule for future wage increases planned every year to increase the minimum wage to $15 per hour by 2028.
This steady rise in the minimum wage reflects West Virginia’s commitment to ensuring that workers receive fair and progressively higher compensation. Employers must stay updated on these changes to comply with the law and plan for the gradual increases in labor costs.
Exemptions for Minimum Wage
In addition to the standard minimum wage requirements in West Virginia, certain exemptions allow specific groups of workers to be paid at a lower rate.
Under 20 Training Wage
As of 2024, workers hired after December 31, 2023, may be paid a subminimum training wage of $9 per hour. This wage applies to employees under the age of 22 for the first 90 days of employment. After this period, employers must begin paying these employees the full minimum wage.
Student Minimum Wage
Full-time high school or college students working part-time may qualify for a reduced wage. West Virginia allows certain employers, such as universities participating in work-study programs, to pay students 85% of the state minimum wage. This student wage applies for up to 20 hours of work per week, giving students the opportunity to earn income while balancing their studies.
Tipped Minimum Wage
West Virginia follows federal guidelines for tipped employees, who can be paid a lower cash wage if they receive sufficient tips. While the base wage for tipped employees is lower, they must still earn minimum wage when tips are included. Employers are responsible for ensuring that tipped workers meet this minimum threshold, making up any difference if tips fall short.
Best Practices and Tips for Compliance
Ensuring compliance with West Virginia's minimum wage laws is essential for employers to avoid penalties and maintain a positive workplace. Here are some best practices and tips for staying compliant with minimum wage regulations in West Virginia.
Regularly Review Wage Laws
Minimum wage laws can change over time, and it’s important to stay up to date with both federal and state requirements. West Virginia’s minimum wage is increasing over the next several years and employers should monitor these changes by regularly consulting official resources like the U.S. Department of Labor and the West Virginia Legislature.
Accurate Recordkeeping
Maintain detailed and accurate records of employee hours worked, wages paid, and any tips earned for tipped employees. This is essential not only for compliance with wage laws but also for resolving potential disputes and ensuring that all workers are paid fairly. According to federal law, records of wages and hours must be kept for at least three years.
Understand Exemptions and Special Cases
Make sure you understand the specific exemptions for workers, such as tipped employees, students, and training workers. West Virginia allows lower wages for certain categories of workers, but strict guidelines apply to ensure employees ultimately receive at least the minimum wage where applicable.
Stay Transparent with Employees
Open communication with your staff about how wages, tips, and overtime are calculated can help prevent misunderstandings and build trust. Provide employees with clear, itemized pay stubs that show all deductions, tips, and hours worked.
How to Offer Fair Wages to Your Restaurant Staff
Providing fair wages to your restaurant staff can be a challenge, especially when operating on tight margins. Here are some ways to boost profitability so you can provide fair wages to your team.
Optimize Your Menu
Conduct a menu audit to identify your most profitable items and focus on promoting those. By removing or reworking low-margin or underperforming dishes, you can streamline operations, reduce waste, and increase the profitability of each order. Menu engineering techniques, such as using visual hierarchy to guide customer choices, can also encourage guests to choose higher-margin items.
Offer Upselling and Add-Ons
Train your staff to upsell items, such as appetizers, desserts, or beverages, which can increase the average check size. Offering add-ons like extra toppings, premium ingredients, or larger portions for a slight additional cost can also boost revenue without significantly increasing labor or food costs.
Strategically Increase Menu Prices
One of the most direct ways to increase profits is by raising menu prices. However, this must be done carefully to avoid losing customers. Start by adjusting prices on high-demand or high-margin items, or consider implementing small, incremental increases across the menu. Highlight the quality of ingredients or unique aspects of your dishes to justify the higher prices to customers.
Leverage Special Events and Promotions
Hosting special events, such as themed dining nights or happy hours, can attract more customers during typically slower periods. Promotions like prix fixe menus or bundled meal deals can increase foot traffic and sales, allowing you to generate additional revenue.
Increase Online Ordering Sales
Expanding your online ordering offerings with food delivery apps can be a significant revenue driver. Optimize your menu for delivery by focusing on popular items that travel well and have high margins.
Focus on Customer Retention
It’s more cost-effective to retain existing customers than to acquire new ones. Use strategies such as loyalty programs and email marketing to keep customers engaged with special offers and updates.
Upcoming West Virginia Minimum Wage Adjustments
West Virginia has planned a series of minimum wage increases that will gradually raise the state’s wage floor to $15 per hour by 2028. These adjustments are outlined in House Bill 2481 and will take effect each year, beginning with a rate increase to $11 per hour on December 31, 2024.
The incremental increases are as follows:
- $11 per hour starting December 31, 2024
- $12 per hour starting December 31, 2025
- $13 per hour starting December 31, 2026
- $14 per hour starting December 31, 2027
- $15 per hour starting December 31, 2028
These increases are designed to help workers keep pace with rising living costs while giving businesses time to adjust to the higher wage rates. Employers should plan for these gradual increases by budgeting for higher labor costs and considering how these changes will affect their overall payroll expenses. Staying ahead of these adjustments is crucial for maintaining compliance with labor laws and managing business operations smoothly.
Additional West Virginia Wage Laws
West Virginia has specific laws regarding overtime pay and labor law posters. These regulations help ensure that workers receive fair compensation for extended work hours and are informed about their rights under state and federal law.
West Virginia Overtime Minimum Wage
In West Virginia, any employee who works more than 40 hours in a week is entitled to overtime pay at a rate of 1.5 times their regular hourly wage. This overtime regulation is in line with the Fair Labor Standards Act, which ensures that workers are fairly compensated for extended hours on the job. While some states have daily overtime limits, West Virginia law does not specify overtime pay for employees who work more than a certain number of hours in a single day.
West Virginia Minimum Wage & Labor Law Posters
Both state and federal laws require employers in West Virginia to display approved labor law posters in a visible location at the workplace. These posters must include information about the state's minimum wage, overtime regulations, and other labor laws to ensure that employees are fully informed about their rights. You can access the required and optional West Virginia labor law posters here.
2024 West Virginia Minimum Wage FAQs
What is the 2024 minimum wage in West Virginia?
As of December 31, 2023, the minimum wage in West Virginia is $10.00 per hour. This rate will increase to $11.00 per hour on December 31, 2024.
Is the minimum wage in West Virginia increasing?
Yes, West Virginia’s minimum wage is set to increase incrementally over the next few years, reaching $15.00 per hour by 2028. The next scheduled increase will take the wage to $11.00 per hour on December 31, 2024.
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