U.S. Virgin Islands Minimum Wage to Increase on April 24, 2026

Quick Hits

• The minimum wage in the U.S. Virgin Islands will increase to $12.00 per hour starting April 24, 2026,
• The increase is part of recent amendments enacted in January 2026 that call for annual increases to the minimum wage rate each year until 2028 and call for potential future adjustments by the Virgin Islands Wage Board after 2029. 
• Employers may want to review and update their wage schedules and plan for future increases to comply with the amendment to the territory’s wage and hour laws. 

The Virgin Islands Minimum Wage Act, Act No. 9069, which was signed into law by Governor Albert Bryan Jr. on January 23, 2026, amends Title 24, Chapter 1, Section 4 of the Virgin Islands Code, increasing the minimum wage, which has been set at $10.50 per hour since 2018. The act also extends the timeline for future adjustments.

Minimum Wage Rate Increase

Act No. 9069 establishes a new set of annual phased increases in minimum wage rates over three years: 

• April 24, 2026: $12.00 per hour
• June 1, 2027: $14.00 per hour
• June 1, 2028: $15.00 per hour

Tipped Tourist Service and Restaurant Employees

Tipped tourist and restaurant employees must still be paid at a rate not less than 40 percent of the minimum wage rate, meaning their minimum wage rate will increase to $4.80 per hour on April 24, 2026.

The Virgin Islands Code allows for the Virgin Islands Wage Board to adjust the minimum wage for tipped “tourist service and restaurant employees” to a rate not greater than 45 percent of the minimum wage or less than the federal minimum wage for tipped employees. The Act adds “whichever is greater,” ensuring that tipped employees receive the higher of the scheduled minimum wage or the applicable federal rate.

Future Adjustments

The act also extends the timeline for future adjustments to the minimum wage rates under the Virgin Islands Code. Beginning after December 31, 2029, and each subsequent year after, the Virgin Islands Wage Board will consider adjustments to the minimum wage. According to the code, the new rate may be “equal to not more than 50 percent of the average private, nonsupervisory, nonagricultural hourly wage as determined by the Wage Board for the previous November, rounded to the nearest multiple of five (5) cents.” At no time may the minimum wage be less than the effective federal minimum wage. 

New Employer Poster

The Virgin Islands Department of Labor (VIDOL) has issued an updated poster reflecting the new minimum wage rates for April 24, 2026. The poster further reminds employers that employees are entitled to overtime pay at time and a half of their regular rate for all hours over eight hours in a single day, hours over forty hours in a week, or any hours on the sixth and/or seventh consecutive days of work. Rates differ for tipped tourism and restaurant employees.

The poster also reminds employers that they are required to maintain and retain records of employees’ hours worked for up to three years and that they must provide those records to the VIDOL when requested.

Next Steps

Employers in the Virgin Islands should take note of the new minimum wage rate and may want to review their existing wage schedules and payroll systems to ensure compliance. The VIDOL emphasized that compliance is mandatory and that employers may be fined up to $2,500 for violations.

Ogletree Deakins’ St. Thomas office will continue to monitor developments and will provide updates on the Hospitality, U.S. Virgin Islands, and Wage and Hour blogs as additional information becomes available.

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