Minimum Wage Hike Clears Hurdle in House Committee

Virginia’s minimum wage could rise to $15 by 2027 under a proposal that cleared the House Labor and Commerce Committee on Thursday in a closely watched 11-9 vote. The bill now heads to the House Appropriations Committee for further consideration.

The legislation, House Bill 1928 by Del. Jeion Ward, D-Hampton, would raise the state’s current minimum wage of $12.41 per hour to $13.50 per hour by January, 2026, and $15 by January 2027. Advocates argue the increase is overdue to keep up with the rising cost of living.

Del. Jeion Ward, D-Hampton, is carrying legislation in the House of Delegates to raise the states minimum wage. (Ned Oliver/Virginia Mercury)

“Since 2020, prices in Virginia have shot up 22% — more than double what we expected — but wages haven’t kept pace,” said Sophie McGinley, labor policy analyst for the Commonwealth Institute for Fiscal Analysis. “The math is simple. When a gallon of milk costs 22% more, but wages only went up 3.4%, working families fall behind.”

The proposal has drawn support from labor and progressive organizations, including Progress Virginia and New Virginia Majority, who see the hike as a critical step toward economic equity.

However, the measure also sparked pushback from some business groups concerned about the potential impact on employers. Critics warn that the wage hike could put additional financial strain on small businesses grappling with inflation and workforce challenges.

The legislation would also task the Commissioner of Labor and Industry to enforce the updated wage standard if enacted. Proponents hope the phased approach will help Virginia workers close the gap between stagnant wages and soaring costs while allowing businesses time to adapt.

Ward, the bill’s sponsor, emphasized that the proposed wage increases align with the consumer price index and that if Virginia’s minimum wage ever exceeds the federal minimum, the commonwealth would adopt the higher rate.

This marks Democrats’ second attempt to pass the legislation after Gov. Glenn Youngkin vetoed a similar proposal last session. In his veto statement, the governor defended a market-driven approach, writing, “The free market for salaries and wages works. It operates dynamically, responding to the nuances of varying economic conditions and regional differences.”

Youngkin also cited cost-of-living disparities between Northern Virginia and more rural regions like Southwest and Southside Virginia, arguing that a “one-size-fits-all mandate” would be impractical.

Business groups, including the Virginia Retail Federation, the Virginia Manufacturers Association and the Virginia Chamber of Commerce, voiced strong opposition to the bill during Thursday’s committee hearing.

Ethan Betterton, policy director for the chamber, warned that the legislation could harm the state’s economic competitiveness and burden small businesses.

“Increased labor costs can be especially devastating to small businesses,” Betterton said. “When labor costs increase, businesses face tough decisions such as reducing hours, limiting expansion and increasing prices, this can stifle economic growth and opportunity.’

The committee advanced the bill without comment.

by Nathaniel Cline, Virginia Mercury

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