(HB1928)

GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 1928, which mandates an arbitrary increase in the minimum wage in Virginia.

The free market for salaries and wages works. It operates dynamically, responding to the nuances of varying economic conditions and regional differences. This wage mandate imperils market freedom and economic competitiveness.

Current law mandates periodic increases in the minimum wage in the Commonwealth, indexing it to the Consumer Price Index for All Urban Consumers, as certified by the Commissioner of Labor and Industry. On January 1, 2025, the minimum wage increased from $12-per-hour to $12.41-per-hour. This approach is preferable, allowing wages to adjust over time in response to economic conditions.

This proposal is an arbitrary, mandatory increase in the starting wages of all employees. Such a substantial increase will raise business operational costs. In response, businesses will raise prices, creating more inflation, and implement hiring freezes and layoffs, ultimately hurting the workers the proposal seeks to assist.

Implementing an arbitrary $15-per-hour wage mandate may not impact Northern Virginia, where economic conditions lead to historically higher wages, but this approach is detrimental for small businesses across the rest of Virginia, especially in Southwest and Southside. A one-size-fits-all mandate ignores the vast economic and geographic differences and undermines the ability to adapt to regional cost-of-living differences and market dynamics.

Successful states recognize that the government does not need to set labor prices; instead, they prioritize creating an economic environment conducive to wage and employment growth. Over the past three years, the Commonwealth has adopted this approach, providing tax relief, reducing regulations, reforming workforce programs, and investing in public education, resulting in wage growth that has outpaced the national average, as well as net-immigration and jobs migration among the top ten states in the country. Continuing these successful policies, not imposing new government mandates, will lead to job growth and wage growth in Virginia.

Accordingly, I veto this bill.