What every employer and employee in the Virgin Islands needs to know
Effective April 24, 2026, the minimum wage in the U.S. Virgin Islands increases to $12.00 per hour under the Virgin Islands Fair Labor Standards Act. Whether you are a business owner updating your payroll or an employee wanting to know your rights, here is a clear breakdown of what the new law requires.
The law requires employers to display this poster where employees can read it.
The New Minimum Wage
- Standard minimum wage: $12.00 per hour, effective April 24, 2026
- Tipped employees in Tourist Services and Restaurants: $4.80 per hour
- Important note for tipped employees: if an employee’s hourly wage plus tips do not add up to $12.00, the employer is required by law to make up the difference
Overtime Pay
Under the VI Fair Labor Standards Act, overtime is paid at time and a half the regular rate of pay for:
- Any hours worked over 8 hours in a single day
- Any hours worked over 40 hours in a week
- Any hours worked on the 6th and/or 7th consecutive day of a workweek
Special rules for the Tourism and Restaurant Industries:
- Overtime on the 6th and 7th consecutive day is paid only if 40 hours were already worked during the first five or six consecutive days
- Overtime is paid on the 7th consecutive day regardless
- Overtime is exempt on the 6th consecutive day if 40 hours have not been reached during that workweek
