Groundworks Operations, LLC v. Campbell

CourtSupreme Court of Virginia
DecidedDecember 30, 2025
Docket241092
StatusPublished

This text of Groundworks Operations, LLC v. Campbell (Groundworks Operations, LLC v. Campbell) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Groundworks Operations, LLC v. Campbell, (Va. 2025).

Opinion

PRESENT: All the Justices

GROUNDWORKS OPERATIONS, LLC F/K/A JES OPERATIONS, LLC, ET AL. OPINION BY v. Record No. 241092 JUSTICE STEPHEN R. McCULLOUGH December 30, 2025 JOSEPH CAMPBELL, ET AL.

FROM THE COURT OF APPEALS OF VIRGINIA

In this appeal we must determine whether the wage theft statute, Code § 40.1-29, covers

commissions. The language of the statute specifically lists wages and salaries, but it does not

expressly apply to commissions. The trial court held that Code § 40.1-29 did not apply to

commissions. The Court of Appeals disagreed and reversed. We conclude that the language of

the statute and its context do not support an interpretation that extends its protections to

commissions. Therefore, we reverse the judgment of the Court of Appeals.

BACKGROUND

According to the allegations in the complaint, the five plaintiffs are former employees of

JES Construction, L.L.C. JES provides construction services such as foundation repair, water

proofing, and crawl space remediation. Groundworks Operations, L.L.C., formerly JES

Operations L.L.C., is a management company that provides services to affiliated companies,

including JES Construction. For the sake of simplicity, we will refer to both defendants as JES.

Four of the plaintiffs would go to prospective customers’ homes to sell construction services.

One plaintiff was responsible for repairing installations and selling additional goods and

services. JES would then perform the construction services pursuant to the contract.

Four of the plaintiffs were paid exclusively on a commission basis. One of the plaintiffs

was paid commissions as well as other compensation. JES initially did not have a written commission policy. The plaintiffs’ commissions were paid as ten percent of the gross price of

the sales they made. JES paid half of the commission once the contract’s three-day rescission

period had expired and the contract had become final. JES paid the remainder once the job was

complete and the customer had made a final payment. The plaintiffs often experienced

significant delays in receiving payment for their full commission. The delays could be caused by

the engineering and permitting phases of the contract. Four of the five plaintiffs later signed an

agreement with JES under which they agreed that the commissions would be paid up to 14 days

after the employees no longer worked for JES. No further commissions would be paid after 14

days. The plaintiffs alleged that JES refused to pay commissions after they left the company.

The plaintiffs asserted that, when they left the company, they were owed thousands of dollars in

earned but unpaid commissions.

The plaintiffs filed a collective action complaint under the wage theft law, Code § 40.1-

29 et seq. They argued that their commissions were earned after the customer’s three-day

rescission period ended, and that JES’s refusal to pay their commissions constituted wage theft.

The plaintiffs asserted that commissions constituted wages under this statute. Three of the

plaintiffs also alleged that the agreement they signed with JES violated the prohibitions of Code

§ 40.1-29(D) (prohibiting employers from requiring an employee to forfeit “wages for time

worked as a condition of employment”). Two plaintiffs left before signing this agreement.

In response, the employer filed a demurrer, contending that Code § 40.1-29 did not apply

to commissions. The circuit court granted the demurrer, concluding that the statute did not cover

commissions. The plaintiffs appealed to the Court of Appeals. That Court reversed, holding that

the term “wages” as used in the wage theft statute applied to commissions. Campbell v.

Groundworks Operations, LLC, 82 Va. App. 580, 583 (2024). The Court of Appeals rested its

2 conclusion on the remedial purpose of the statute, past decisions interpreting the term “wages” in

other contexts, and an interpretation by an administrative agency contained in a field manual. Id.

at 592. This appeal followed.

ANALYSIS

The issue before us is one of statutory construction. Consequently, we review the

decision below de novo. Conger v. Barrett, 280 Va. 627, 630 (2010).

I. OVERVIEW OF THE WAGE THEFT LAW

The General Assembly has provided statutory protections for employees whose “wages”

or “salaries” are improperly withheld by their employers. Code § 40.1-29(C) (prohibiting

employers from “withhold[ing] any part of the wages or salaries of any employee except for

payroll, wage or withholding taxes or in accordance with law, without the written and signed

authorization of the employee”). Among other provisions, the law requires employers to

establish regular pay periods and rates of pay. Code § 40.1-29(A). Salaried employees must be

paid “at least once each month.” Id. Employees who are paid on an hourly basis must be paid

“at least once every two weeks or twice in each month.” Id. The same paragraph specifies that

“[u]pon termination of employment an employee shall be paid all wages or salaries due him for

work performed prior thereto; such payment shall be made on or before the date on which he

would have been paid for such work had his employment not been terminated.” Id.

In addition, “[n]o employer shall require any employee, except executive personnel, to

sign any contract or agreement which provides for the forfeiture of the employee’s wages for

time worked as a condition of employment or the continuance therein, except as otherwise

provided by law.” Code § 40.1-29(D).

3 A plaintiff who establishes a violation of the statute is entitled to recover not only his or

her lost wages, but also “an additional equal amount as liquidated damages, plus interest at an

annual rate of eight percent accruing from the date the wages were due” as provided in Code

§ 40.1-29(G), “and reasonable attorney fees and costs.” Code § 40.1-29(J). However, employers

who knowingly fail to pay wages face a penalty “equal to triple the amount of wages due,” as

well as reasonable attorney’s fees and costs. Code § 40.1-29(J).

Code § 40.1-29(E) provides for a criminal prosecution in the event an employer

“willfully and with intent to defraud fails or refuses to pay wages in accordance with this

section.” The classification of the crime depends on the value of the wages. When “the value of

the wages earned and not paid by the employer is less than $10,000,” the crime is a Class 1

misdemeanor. Id. If the value of the wages is $10,000 or more, or if the employer is guilty of a

second or subsequent conviction, the crime is a Class 6 felony. Id.

The Commissioner of Labor and Industry “may institute proceedings on behalf of an

employee to enforce compliance with this section, and to collect any moneys unlawfully

withheld from such employee that shall be paid to the employee entitled thereto.” Code § 40.1-

29(F). Additionally, subsection J of the statute permits an employee to “bring an action” against

the employer “individually, jointly, with other aggrieved employees, or on behalf of similarly

situated employees as a collective action consistent with the collective action procedures of the

Fair Labor Standards Act.” Code § 40.1-29(J).

II. THE WAGE THEFT LAW DOES NOT COVER COMMISSIONS, EITHER EXPRESSLY OR BY IMPLICATION.

The pivotal issue in this case is whether Code § 40.1-29, which expressly addresses

“wages” and “salaries,” also incorporates commissions.

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