Virginia minimum wage rises to $12.41, aiming to improve workers' purchasing power

(WSET) — A new minimum wage law is in effect in Virginia.

The minimum wage in Virginia increased from $12.00 an hour to $12.41.

Experts said the 41-cent increase is aimed at helping employees fight inflation.

Dr. Nancy Hubbard of HuMann Advisors said inflation is rising, but there has been no change in wages.

She said the 3.5 percent increase could lead to an increase in employees’ purchasing power.

While the 41 cent change won’t have a huge impact immediately, it could lead to a chain reaction across the board.

“If a person makes, say, $14 an hour, and the minimum wage increases by 40 cents, the difference between them and a minimum wage person has been reduced and you may find that employers also feel the need to increase their salaries in order to keep employees,” Hubbard said.

Hubbard said the minimum wage change would only affect about 1 percent of Virginia’s population.

She doesn’t expect the wage increase to lead to large-scale price changes, but she said it could be the boost some businesses need to raise prices if they’re already feeling strained .