Why This Matters
HB 1 establishes a statewide minimum wage increase to $15.00 per hour by 2028 and then requires automatic annual increases tied to inflation. The bill sets the wage at $12.77 in 2026, increases it to $13.75 in 2027, and reaches $15.00 in 2028, after which wages rise each year based on the Consumer Price Index.RALLY ANALYSISHB 1 imposes a one-size-fits-all wage mandate that ignores the economic realities of Virginia’s diverse regions, industries, and small businesses.While marketed as “helping workers,” the bill locks employers into automatic cost increases — regardless of economic downturns, recessions, or local market conditions. Tying wages to inflation creates a permanent upward ratchet with no off-ramp, even when businesses are struggling.Small businesses — especially restaurants, retailers, farms, and family-owned operations — will face higher labor costs they cannot absorb. The likely result is reduced hours, fewer entry-level jobs, higher prices for consumers, or layoffs.
Related Bills
BILL
HB 1 — 2026
Minimum wage; increases incrementally to $15.00 per hour by January 1, 2028.
Abstract: A BILL to amend and reenact § 40.1-28.10 of the Code of Virginia, relating to minimum wage.
Latest Action: Feb 23, 2026 Reported from Commerce and Labor and rereferred to Finance and Appropriations (8-Y 5-N) (All Actions 12)
Tracker:
Introduced
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