Virginia Bill Proposes Minimum Wage Hike to $15 by 2028 — What It Means for Workers and Small Businesses

Virginia lawmakers are once again debating a major change to how much the state’s lowest-paid workers should earn. House Bill 1 (HB1), introduced by Delegate Jeion A. Ward, would raise the state’s minimum wage to $15.00 per hour by January 1, 2028. The proposal is now under review in subcommittee as part of the 2026 Regular Session of the General Assembly.

If the bill passes, Virginia’s current minimum wage of $12.77, which just took effect on January 1, 2026, would increase in two stages: first to $13.75 in 2027, then to $15.00 in 2028. After that, starting in 2029, the wage would automatically be adjusted each year to keep up with inflation, using the consumer price index as a guide.

As the chief patron of HB1, Delegate Jeion A. Ward has long supported efforts to raise the minimum wage in Virginia. Supporters of the bill say it would help workers keep up with rising costs and close the gap between wages and the actual cost of living.

But not everyone agrees. Critics, including some business groups and lawmakers, warn that a higher wage could create challenges, especially for small businesses in rural or lower-income areas.

Why Raise the Minimum Wage?

Across the country, raising the minimum wage has been a hot topic for years. In Virginia, this debate has been ongoing since 2020, when lawmakers approved a plan to raise wages in stages. That plan stalled in 2022, leaving future increases uncertain. HB1 now aims to put those raises back on track and lock them into law.

For many workers, a higher wage would mean more money in their pockets to help pay for rent, groceries, transportation, and childcare. With housing and food prices climbing, advocates say the current wage simply isn’t enough for a full-time worker to get by.

According to the Economic Policy Institute, increasing the minimum wage can boost local economies because low-wage workers are more likely to spend additional earnings on goods and services in their communities.

Higher pay can also lead to lower employee turnover, as workers are more likely to stay in their jobs if they’re earning a livable wage. That can save businesses money on hiring and training.

What Are the Concerns?

Still, raising the minimum wage doesn’t come without tradeoffs. Small businesses often have slim profit margins. For them, a sudden jump in payroll expenses can be tough to manage.

According to a 2024 report from the National Federation of Independent Business (NFIB), many small business owners across the country said a $15 minimum wage would likely lead them to raise prices, cut employee hours, or delay new hires in order to control rising labor costs. The group, which represents small and independent businesses, has voiced concern that wage mandates don’t always reflect the realities faced by local employers, especially in smaller towns or rural areas.

In communities with lower costs of living, business owners may find it difficult to match wages common in larger cities. Some argue that a statewide wage doesn’t account for those regional differences and could put rural businesses at a disadvantage.

There are also concerns that higher wages could lead to higher prices for consumers, particularly in service industries such as restaurants and retail. Business groups say that as employers face higher payroll costs, those increases often trickle down to customers.

What It Means for Communities Like Warren County

In places like Warren County, where many businesses are locally owned, the impact of HB1 would be felt differently than in big cities. A higher wage could help workers better support their families, especially those holding multiple part-time jobs to make ends meet. But small businesses might need time and support to adjust.

Some may find ways to balance costs, such as reducing non-essential spending, cross-training employees, or gradually raising prices. Others may seek technical or financial assistance through local business programs.

At the same time, a wage increase could lead to more local spending, as residents with higher disposable income shop at hometown businesses, eat out more often, and support local services.

What’s Next?

HB1 is still early in the legislative process. It’s currently in subcommittee, where lawmakers will listen to public input and decide whether to advance the bill to the full House. If it passes the House and Senate and is signed by the governor, the changes would begin taking effect next year.

For now, Virginia’s minimum wage remains at $12.77 per hour, and both workers and employers are watching closely to see what lawmakers do next.

Whether you support the bill or have concerns, HB1 is shaping up to be one of the most important labor issues of the 2026 General Assembly. It touches not just paychecks, but also the future of small businesses, the cost of living, and the health of Virginia’s local economies.