The Virgin Islands minimum wage will rise from $10.50 per hour to $12.00 per hour on April 24, 2026, under Act No. 9069. Photo: VIC

Along with notifying employers and the public of the new rate, the department reminded covered employers that compliance is required beginning on the effective date and outlined the broader employee protections and labor rules that remain in effect under the Virgin Islands Fair Labor Standards Act.

According to the Department of Labor, the increase takes effect ninety days after the enactment of Act No. 9069. The department said all covered employers must ensure full compliance with the updated minimum wage beginning April 24.

Under Title 24, Chapter 1, Section 4(a) of the Virgin Islands Code, the minimum wage schedule is set at $12.00 per hour effective April 24, 2026, $14.00 per hour effective June 1, 2027, and $15.00 per hour effective June 1, 2028. Beginning June 1, 2029, the wage will be subject to determination by the Virgin Islands Wage Board based on economic data.

Application of law for tipped workers

The department also outlined how the law applies to tipped workers. Tourist service and restaurant employees who receive tips must be paid at a rate of not less than 40 per cent of the minimum wage, or as otherwise determined under subsection (b). After 2030, the Virgin Islands Wage Board may adjust that rate based on verifiable economic conditions, within the limits established by law.

The official employee-rights poster lists tourist services, and restaurant tipped employees at $4.80 and states, “If the hourly wage and tips do not equal $10.50, the employer shall assure the minimum wage is paid.”

Employers are also required to post the official notice where employees can read it. The poster states that overtime must be paid at time and a half the regular rate for work performed over eight hours in a day, over 40 hours in a week, and for any hours worked on the sixth and or seventh consecutive day.

The poster also notes a variation for tourism and restaurant industry workers. In those industries, workers are paid overtime on the sixth and seventh day only if 40 hours were first worked during the first five or six consecutive days, and overtime on the seventh consecutive day. It further notes that in the tourism and restaurant industries, overtime is exempt on the sixth consecutive day, provided 40 hours of work are not exceeded during the work week.

Provisions for empoyees under 18-years-old

Additional provisions on the poster state that employees under 18 years of age may not work in hazardous occupations. Employers are required to maintain accurate records of hours worked by all employees each day and each work week, and those records must be maintained and retained for three years and made available to the Department of Labor upon request for inspection.

The Department of Labor says it is mandated by law to conduct investigations to enforce the legislation, and employers may be fined up to $2,500 for violations. The poster also states that if discharged, employees may file a wrongful discharge complaint with the department within 30 days of the date of discharge.

On job discrimination, the poster states that employees who believe they have been discriminated against in hiring, employment, discharge, compensation, terms, conditions, or privileges of employment because of race, sex, religion, colour, or ancestry may file a complaint with the department within 180 days of the alleged unlawful act or acts. It also states that employees who file complaints or participate in wage and hour investigations are protected from discharge.

In the release, Commissioner Dr Gary Molloy said the wage adjustment represents an important step in strengthening the territory’s workforce and improving economic stability for workers and families across the Virgin Islands.

The department is encouraging employers to review their payroll systems and take the necessary steps to ensure timely compliance. For more information, including access to the official minimum wage poster, the Department of Labor said people may contact the Division of Labor Relations at St. Croix at 340-773-1994, St. Thomas at 340-776-3700, or St. John at 340-693-4367. The poster also lists the Department of Labor’s Division of Labor Relations offices at 54A and B Kronprindsens Gade in St. Thomas and #4401 Sion Farm, Suite 1, in Christiansted.