Complete West Virginia Minimum Wage Compliance Guide

West Virginia’s minimum wage laws are straightforward but carry important nuances for employers. Staying informed ensures compliance and helps maintain fair pay practices across your workforce, while understanding the specifics of these laws can protect your business while supporting employees.

Employers in the state need to be mindful of how federal and state minimum wage rates interact. The higher rate always applies, which can create differences depending on the situation. Knowing the applicable rate for your workforce is key to avoiding errors.

This guide covers West Virginia's minimum wage requirements, explains how federal laws fit into the picture, and clarifies who must comply under state regulations.

West Virginia Minimum Wage Overview

The minimum wage in West Virginia is $8.75 per hour, according to West Virginia Code §21-5C-2. This rate has been in effect since December 31, 2015, and applies to most non-exempt employees. If the federal minimum wage, currently $7.25 per hour, increases above the state rate, employers must pay the higher federal amount.

West Virginia's wage laws apply to employers with six or more non-exempt employees working at a single location. Smaller businesses with fewer employees may not fall under these requirements, but understanding exemptions is important to avoid missteps.

While legislation such as House Bill 2481 has been introduced in recent years to increase the minimum wage in West Virginia incrementally, no laws have been passed to increase the state minimum wage further. However, employers should closely monitor any future legislation that may affect their wages and compliance.

Coverage and Employee Eligibility

West Virginia law defines an employer as any business, organization, or entity with six or more non-exempt employees working at a single physical location. This threshold is specific to individual worksites rather than the total number of employees across multiple locations. Employers with fewer than six employees at a single site are not subject to the state's minimum wage requirements but may still need to follow federal standards.

Full-time and part-time employees are included under West Virginia's minimum wage regulations. Seasonal employees also qualify if they work for an employer that meets the six-employee threshold. However, job classifications matter. Non-exempt employees are eligible for minimum wage protections, while certain exempt roles, such as executives or professionals, are not.

Counting employees accurately at each location is critical for compliance. Misunderstanding the rules or overlooking specific workers, like part-time staff, can lead to wage violations and penalties. Employers should review their workforce regularly to ensure compliance with West Virginia's minimum wage laws.

Tips for Adjusting Payroll

Managing yearly wage increases requires preparation and clear communication across your organization. Employers can take several practical steps to stay ahead of the changes.

• Reassess payroll budgets regularly: Account for each scheduled increase and the resulting impact on payroll taxes and overall labor costs. Build these adjustments into financial forecasts to avoid surprises.

• Inform employees early: Notify team members about upcoming wage adjustments ahead of time. Providing clear timelines helps employees understand how the changes affect their paychecks.

• Review pay structures: Examine how the new minimum wage impacts compensation across roles. Ensure pay differentials between entry-level and higher-level positions remain competitive to support retention.

Timely payroll updates are non-negotiable. Employers should work closely with payroll administrators or use software solutions capable of automating these annual adjustments. Staying organized and proactive reduces the risk of errors and maintains compliance with West Virginia's minimum wage laws.

Training Wage Rules

West Virginia employers have the option to offer a subminimum training wage, but only under strict conditions. This reduced rate provides flexibility during the onboarding process but comes with clear limits to protect employees.

Subminimum Training Wage Eligibility

The subminimum training wage applies only to employees hired after December 31, 2023, and is set at $9.00 per hour. Employers can't use this wage for existing employees or those hired before the cutoff date. It's strictly available for new hires meeting the outlined criteria.

Age and Duration Restrictions

The training wage is limited to employees under the age of 22. Once an employee turns 22, employers must increase their pay to meet the regular minimum wage standards without delay.

The state also enforces a 90-day cap on the training wage. This limit represents the total cumulative days an employee can receive the reduced rate, regardless of breaks in employment. Employers must keep precise records to avoid exceeding this timeframe.

Federal Subminimum Training Wage

If the federal subminimum training wage surpasses the state’s $9.00 per hour, employers must follow the federal rate. This ensures compliance with federal law while maintaining equity for employees. Regular review of federal wage updates is necessary to avoid discrepancies.

Employers must apply the training wage correctly without exceeding the limits on age, duration, or pay rate. Missteps can lead to penalties, back pay requirements, and reputational risks.

Exemptions and Special Cases

West Virginia's minimum wage laws include specific exemptions for certain workers. These exclusions depend on the type of work performed, the size of the employer, and whether federal guidelines apply. Employers need a clear understanding of these exceptions to ensure proper compliance and avoid unnecessary payroll adjustments.

Workers Excluded from State Minimum Wage Laws

Some workers are entirely outside the scope of West Virginia's minimum wage protections. These roles are defined based on employment arrangements or industry-specific factors:

• Volunteer Workers: Individuals who provide services to charitable, educational, or nonprofit organizations without pay are not covered. However, if they receive payment beyond expense reimbursements, their status may change.

• Small-Scale Agricultural Employees: Farmworkers employed on operations with fewer than six employees are generally not subject to state minimum wage requirements. Tasks like planting, harvesting, or maintenance often fall into this category.

• Independent Contractors: Contractors are not considered employees and are excluded from wage protections. Employers must ensure proper classification to avoid penalties tied to misclassification.

Each exclusion is narrowly defined, and employers should carefully assess job roles and duties before applying an exemption.

FLSA Exemptions and Federal Alignment

West Virginia’s exemptions align closely with the FLSA in many cases. For example, executive, administrative, and professional employees who meet federal duties and salary requirements are generally exempt from both state and federal minimum wage laws.

Other roles exempt under federal guidelines include:

• Tipped Employees: Workers who earn more than $30 per month in tips may qualify for a reduced hourly wage, provided their tips make up the difference to meet minimum wage levels.

• Seasonal Amusement Employees: Staff employed at seasonal businesses, like amusement parks operating less than seven months a year, may also fall under FLSA exemptions.

Employers with workers covered by federal labor laws must follow the stricter of the two standards.

Partial Exemptions and Special Wage Arrangements

Some roles qualify for partial exemptions, allowing employers to use alternative wage structures under specific conditions. For example, subminimum wages may apply to workers with disabilities in positions certified by the Department of Labor. Employers must secure approval and document compliance to use these special rates from the Department of Labor.

Additionally, piece-rate workers—those paid based on units produced rather than hours worked—must still receive total compensation equal to or above the minimum wage when averaged across hours worked. Employers are responsible for tracking all compensable time, including setup or travel between job sites, to ensure compliance.

Understanding exemptions and partial exclusions is vital for accurate payroll management. Reviewing eligibility criteria regularly helps employers avoid compliance risks and payroll discrepancies.

Wage Compliance Essentials

Ensuring compliance with minimum wage laws in West Virginia starts with clear processes and accurate recordkeeping. Employers must prioritize proper documentation, provide employees with mandatory postings, and establish straightforward policies for wage adjustments. Each step safeguards against errors and promotes transparency.

Recordkeeping Requirements

Payroll records are not just for audits—they're the foundation of a compliant operation. Employers must maintain detailed records, including:

• Employee details: Names, addresses, job titles, and Social Security numbers.

• Hours worked: Daily and weekly totals, including overtime hours.

• Wage information: Pay rates, gross earnings, and overtime calculations.

• Deductions: Clear breakdowns of taxes, benefit contributions, or other withholdings.

Keep these records organized and accessible for at least three years, as required by law. Regularly review payroll data for accuracy, especially after wage rate changes. Mismanagement of records can lead to fines or disputes, so invest in systems that simplify tracking and storing payroll information.

Posting Notices

Federal and state labor law posters must be visible to employees in workplaces. These notices explain key regulations, such as minimum wage laws and overtime eligibility, ensuring workers understand their rights. Common display areas include break rooms, entrances, or near timekeeping systems.

For employees working remotely, employers must provide the same information digitally. Upload required postings to a secure employee portal or send them directly via email. Accessibility is key, as failure to provide these postings can result in compliance violations.

Maintaining Written Policies

Documenting wage policies establishes consistency and prevents confusion. Employers should outline guidelines for pay rates, wage increases, overtime eligibility, and deductions. Written policies help employees understand how their compensation is determined and when updates occur.

Include the following in written policies:

• Pay structure: Define base wages, incremental increases, and pay periods.

• Overtime rules: Specify positions eligible for overtime and how rates are calculated.

• Deductions policy: List authorized deductions and how they are applied.

Distribute policies during onboarding and after any updates. Transparency strengthens trust and reduces the likelihood of disputes over pay.

Practical Steps for Employers

Proactively managing wage compliance avoids mistakes and keeps operations running smoothly. Employers can take several straightforward actions to stay on track:

• Audit payroll systems routinely: Cross-check records with current wage laws to confirm accuracy. Address gaps or errors immediately.

• Educate managers on wage compliance: Provide training on overtime rules, employee classifications, and recordkeeping practices. Consistent knowledge across management teams minimizes risks.

• Leverage payroll automation: Automate calculations, track hours worked, and generate reports to ensure every employee is paid correctly.

Focusing on compliance enhances operational efficiency and fosters a fair workplace. Detailed processes and open communication are the building blocks of a reliable wage system.

Navigating West Virginia's minimum wage laws requires attention to detail and a commitment to compliance. We're here to help you understand the complexities and streamline your payroll processes. Book a demo with us today to learn how our platform can simplify wage compliance and support your business goals.