Effective January 1, 2022, Virginia’s state minimum wage rate will increase from $7.25 per hour to $11.00 per hour. 

Tipped employees may be paid a minimum cash wage of $2.13 per hour (employers may utilize a maximum tip credit of $5.12 per hour).

In calculating the overtime rate for the tipped employee, the restaurateur must multiply the minimum wage ($11.00 per hour) by 1½ (1.5), subtract the tip credit ($5.12 per hour), multiply that figure by the number of overtime hours worked, and then add that sum to their 40-hour total. 

In Virginia, there are not any laws around paid sick days.

The practice is permitted along as the cost passed on to the employee does not exceed the transaction fee itself.