The Virgin Islands Department of Labor is warning employers that enforcement actions are on the table as the territory moves closer to a mandated minimum wage increase set to take effect this week.
In a release issued this week, Labor Commissioner Dr. Gary Molloy said the department launched a 10-day public information campaign ahead of the April 24 implementation of a new $12 per hour minimum wage, as required under Act No. 9069. The campaign, branded “$12 by April 24: Prepare. Comply. Empower.,” is intended to guide employers and employees through the transition while emphasizing compliance.
Day three of that campaign focuses squarely on enforcement, with VIDOL cautioning that employers who fail to meet the new wage standard could face investigations and financial penalties of up to $2,500. The department is urging businesses to take immediate steps to ensure they are in line with the law before the deadline.
Under the updated requirements, the $12 hourly minimum applies across most sectors, with specific provisions for tipped employees in the tourism and restaurant industries, who must earn at least $4.80 per hour in wages, with tips bringing total earnings up to the $12 threshold. If tips fall short, employers are required to make up the difference.
The law also outlines overtime rules, including time-and-a-half pay for work exceeding eight hours in a day, 40 hours in a week, or on the sixth or seventh consecutive day, with some variations for tourism-related businesses. Employers are further required to maintain accurate time records for all workers for at least three years and make those records available for inspection upon request.
The law also includes protections for workers, allowing employees to file complaints related to wrongful discharge within 30 days and job discrimination within 180 days, with safeguards in place for those who participate in wage and hour investigations.
VIDOL officials said the department is authorized to conduct investigations to enforce the law and reminded employers that compliance is not optional as the effective date approaches.
