News

We wrapped up week two of the 2022 General Assembly Session and several issues important to the Retail Industry have started to make their way through the legislative process. Below is a summary of key legislation that has had action in the last week.

To view our complete tracking list, please click here.

Minimum Wage | Sales Tax| Mandatory Opt-Out for Automatic Renewal | Workers Compensation | Other Tax Issues | Limited Liability Companies | Permit Issues | Employer Mandates | COVID-19 | ABC | Small Business

Minimum Wage

Of the four bills introduced that relate to freezing the minimum wage increase, only two remain. Senator Peake’s legislation was defeated in the first Senate Commerce and Labor Committee meeting and Delegate Marshall’s legislation was amended to apply only to certain planning districts, and did not pass either. Now both Delegate Freitas and Delegate McNamara’s legislation will be heard in the Full Commerce and Energy Committee, and then on the House floor if they pass out of Committee.

Delegate Freitas’ legislation freezes the increase at $11 an hour, and Delegate McNamara’s was amended to allow employers to include health benefits when calculating wage for any increase scheduled increase above the current $11 an hour.

• HB 171- Marshall- Minimum wage; removes certain provisions relating to increasing state wage. (H) House subcommittee amendments and substitutes offered
  • Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.
• HB 296- McNamara- Minimum wage; removes certain provisions relating to increasing state wage. (H) Subcommittee recommends reporting with substitute (6-Y 4-N)
  • Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.
• HB 320- Freitas- Minimum wage; removes certain provisions relating to increasing state wage. (H) Subcommittee recommends reporting (6-Y 4-N)
  • Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.
• SB 173- Peake- Minimum wage; removes certain provisions relating to increasing state wage. (S) Passed by indefinitely in Commerce and Labor (12-Y 3-N)
  • Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

Sales Tax

The three Senate Bills to increase the Sales tax to support school construction projects are now on the Senate Floor. Bothe Senator Norment and Senator Deed’s bills are for specific localities. However, Senator McClellan’s bill authorizes all counties and cities to impose an additional local sales tax at a rate not to exceed 1%, with the revenue to be used only for capital projects for the construction or renovations of schools. This would mean that localities that have not already implemented this 1% sales tax rate increase would no longer be required to come to the General Assembly to seek passage of legislation to get their name added to the list of localities allowed to implement the increased sales tax, they would just need to pass a referendum locally to increase the Sales Tax.

• SB 37- Norment- Sales tax; authorizes additional local tax for constructing, etc., schools in Isle of Wight County. (S) Passed the Senate (27-Y 12-N)
  • Adds Isle of Wight County to the list of localities that, under current law, are authorized to impose an extra one percent local sales tax. Revenue from the tax may be used only for constructing or renovating schools.
• SB 298- Deeds- Sales and use tax, local; additional tax in City of Charlottesville to support schools. (S) Passed the Senate (28-Y 12-N)
  • Adds the City of Charlottesville to the list of localities that, under current law, are authorized to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools.
• SB 472- McClellan- Retail sales & use tax, additional local; use of revenues for construction or renovation of schools. (S) Passed the Senate (28-Y 12-N)
  • Allows any county or city to levy a local general retail sales tax and a local use tax at a rate not to exceed one percent as determined by its governing body to provide revenues solely for capital projects for the construction or renovation of schools if such levy is approved in a voter referendum. Under current law, the power to levy such local sales and use taxes for the construction or renovation of schools is limited to the qualifying localities of Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville.

Mandatory Opt-Out for Automatic Renewal

Delegate Davis’ bill has passed out of Commerce and Energy Subcommittee, but was amended to only require those who have an online automatic renewal to also have the ability to cancel that automatic renewal online, rather than having to contact the business by some other manner.

• HB 78- Davis- Automatic renewal or continuous service offer to consumer; cancellation and online opt-out. (H) Subcommittee recommends reporting with amendments (10-Y 0-N)
  • Requires that the supplier of automatic renewals or continuous service offers that include a free trial notify the consumer of the automatic renewal seven days prior to expiration of the free trial and obtain the consumer's affirmative consent to the automatic renewal beyond the trial period. The bill also requires that suppliers of automatic renewals or continuous service offers through an online website must make available a conspicuous online option to cancel a recurring purchase of a good or service within the website by which such purchase was made.

Workers Compensation

• SB 226- McPike- Workers' compensation; notice to employees. Passed out of Senate Commerce and Labor Committee with Amendment (12-Y 2-N 1-A)
  • Requires each employer subject to the Virginia Workers' Compensation Act to provide notice to covered employees of the employees' right to dispute a claim through the Virginia Workers' Compensation Commission. Such notice must include specific text as included in the bill. The bill also provides that an employer who fails to provide such notice may be subject to the civil penalty provisions of the Virginia Workers' Compensation Act.

Other Tax Issues

• SB 25- Ruff- Cigarette tax, local; tax increase payment on unsold inventory. (S) passed Senate (40-Y 0-N)
  • Requires any locality that increases its cigarette tax rate to allow, for one calendar year after the increase, a person with unsold inventory to pay the tax increase on the unsold inventory by filing a return, rather than requiring the use of a stamp or meter impression. The bill imposes a duty on regional cigarette tax boards to effectuate the policy.
• HB 267- McNamara- Taxes, local; surplus revenues. (H) Subcommittee recommends reporting (9-Y 0-N)
  • Grants localities permissive authority to return surplus personal property tax revenues to taxpayers. Under current law, localities may return only surplus real property tax revenues.

Limited Liability Companies

• HB 309- Rasoul- Limited liability companies; prepayment of annual registration fees. (H) Subcommittee recommends reporting with substitute (10-Y 0-N)
  • Permits domestic and foreign limited liability companies to prepay annual registration fees for two or three years. Under the bill, a domestic or foreign limited liability company must make the election to prepay its annual registration fees before its annual registration fee would otherwise be due and seek approval from the State Corporation Commission to engage in prepayment for two or three years. The bill provides that such optional prepayment does not apply to the initial annual registration fees assessed against a limited liability company that is newly formed or recently converted from another entity. The bill requires that, if applicable, the Commission provide notice of this prepayment option to a foreign or domestic limited liability company that has failed to pay its annual registration fee as a method of avoiding future delinquencies.

Permit Issues

• SB 32- Marsden- Overweight vehicle permits; increases maximum extension of existing weight limits. (S) Stricken at request of Patron in Transportation (15-Y 0-N)
  • Increases from five percent to 10 percent the maximum extension of existing weight limits authorized by an overweight vehicle permit. The bill retains the limit of 84,000 pounds and the maximum weight limit on interstate highways.

Employer Mandates

• SB 244- Hashmi- Organ donors; unpaid leave, civil penalty. (S) Rolled into SB271 by Senate Commerce and Labor (13-Y 2-N)
  • Increases from five percent to 10 percent the maximum extension of existing weight limits authorized by an overweight vehicle permit. The bill retains the limit of 84,000 pounds and the maximum weight limit on interstate highways.
• SB 271- Ebbin- Living organ donors; discrimination prohibited, unpaid leave, civil penalty. (S) Rereferred to Finance and Appropriations
  • Prohibits any person from refusing to insure, refusing to continue to insure, or limiting the amount or extent of life insurance, disability insurance, or long-term care insurance coverage available to an individual or to charge an individual a different rate for the same coverage based solely and without any additional actuarial risks upon the status of such individual as a living organ donor. The bill requires that an employer that employs 15 or more employees provide eligible employees with (i) up to 60 business days of unpaid organ donation leave in any 12-month period to serve as an organ donor and (ii) up to 30 business days of unpaid organ donation leave in any 12-month period to serve as a bone marrow donor. The bill requires the employer to restore the employee's position following the leave, to continue to provide coverage for the employee under any health benefit plan, and to pay the employee any commission earned prior to the leave. The bill prohibits the employer from taking retaliatory action against the employee for taking organ donation leave. The bill requires the Commissioner of Labor and Industry to enforce its provisions and provides for civil penalties for violations of its requirements.
• SB 494- McClellan- Virginia Human Rights Act; nondiscrimination in employment, definition of employer. (S) Reported from Senate General Laws and Technology (8-Y 7-N) and is now on the Floor of the Senate.
  • Amends the definition of "employer" to mean a person employing five or more employees, instead of 15 or more employees under current law, for each working day in each of 20 or more calendar weeks in the current or preceding calendar year, and any agent of such person. The bill provides that a person claiming to be aggrieved by an unlawful discriminatory practice may file a written complaint with the Division of Human Rights within two years of the occurrence of the alleged unlawful discriminatory practice and that an aggrieved person who has been provided a notice of his right to file a civil action for such grievance may do so within one year of receiving such notice or within two years after the alleged discriminatory practice occurred, whichever is later. The bill also changes a courts award of reasonable attorney fees and costs to a successful plaintiff from discretionary to mandatory.

COVID-19

• SB 548- Chase- Virginia Human Rights Act; nondiscrimination in places of public accommodation; COVID-19. (S) Failed to report (defeated) in General Laws and Technology (7-Y 8-N)
  • The bill prohibits discrimination in public accommodations on the basis of an individual as having received, received in part, or not received a vaccine for the prevention of COVID-19.
• SB 582- Chase- Virginia Human Rights Act; nondiscrimination in places of public accommodation. (S) Passed by indefinitely (defeated) in General Laws and Technology (8-Y 6-N)
  • Prohibits discrimination in places of public accommodations including public and private elementary and secondary schools and institutions of higher education and certain private establishments because the individual is or is not wearing a face covering for the purpose of preventing the transmission of COVID-19.

ABC

• SB 619- Cosgrove- Alcoholic beverage control; food-to-beverage ratio. (S) Stricken at request of Patron in Rehabilitation and Social Services (15-Y 0-N)
  • Provides an alternative to the food-to-beverage ratio for mixed beverage restaurant licensees by allowing such licensees to meet applicable food sale requirements by demonstrating at least $10,000 in monthly food sales.

Small Business

• HB 155- March- Small Business and Supplier Diversity, Department of; business permitting program, etc. (H) Subcommittee recommends striking from docket (7-Y 0-N)
  • Requires the Department of Small Business and Supplier Diversity, in consultation with regulatory agencies, to make a reasonable estimation of the time required of a small business to compile information and submit an application for the comprehensive permit and for each permit not included in the comprehensive permitting program. The bill requires the Department to include in the estimation an aggregated time required estimation for each type of business and to publish the estimations on its website and update its information as necessary based on information from regulatory agencies with regard to policy and regulatory changes affecting permitting.

We wrapped up the first week of the 2022 General Assembly Session with the Inauguration of Governor Glenn Youngkin, Lieutenant Governor Winsome Sears, and Attorney General Jason Miyares. With both the House of Delegates and the Senate duly organized and the new Administration in place, the pace of Session will pick up very quickly.

Your VRF team is up at the Capitol representing the retail voice on any issues that impact the industry. As in years past, we will be sending out Action Alerts on priority issues. It is imperative that members participate in any Action Alert you receive. This is just one more way for your voice to be heard on issues that impact your individual business.

Read more

As you may be aware, OSHA issued the Emergency Temporary Standard (ETS) that requires employers with over 100 employees to mandate the COVID-19 vaccine for all employees. Below is a brief summary of the Standard provided by the National Retail Federation.

Over the weekend, the 5^th Circuit Court of Appeals issued a Stay (temporary stop) on enforcement of the ETS until it could be further reviewed by the court. This review could happen very quickly, so it is important for employers with more than 100 employees to review the ETS, and be prepared to implement all requirements if the Stay is lifted. 

We will keep you informed as more information becomes available.
 

EMERGENCY TEMPORARY STANDARD (ETS) SUMMARY: 

By December 5, employers must:

Assess their workforce to determine who is and who is not vaccinated. Must categorize into:

• Vaccinated. Employers cannot take employees’ self-attestation. Employers must see their vaccination cards and we must threaten them with criminal penalties for filing fraudulent information.
• Unvaccinated and willing to get the shot. These workers must then start the process of vaccination to avoid weekly testing. Workers need to have received BOTH SHOTS by January 4, 2022. Thus, they must start the Pfizer regiment by December 14 or the Moderna regiment by December 7. Employers must offer up to four hours of paid time off, including travel time, at the employee’s regular rate of pay per dose for employees to get vaccinated. Employers may not require employees to draw down vacation time for this purpose. Employers must provide paid sick leave for a “reasonable time” to employees to recover from side effects but can insist this leave come from accrued time off.
• Those for whom a vaccine is medically contraindicated.
• Those for whom medical necessity requires a delay in vaccination.
• Those legally entitled to a reasonable accommodation under federal civil rights laws because they have a disability or sincerely held religious beliefs, practices, or observances that conflict with the vaccination requirement.
• Refusers

Impose a mask mandate for unvaccinated employees. Mask must always cover the nose and mouth while working indoors. Masking required when occupying a vehicle with another person for work. when an employee is alone in a room with closed door. No masking required while the employee is eating or drinking. No masking required if it “creates a greater hazard.”

Employers must inform each employee about:

• The requirements of the ETS
• Any employer policies and procedures established pursuant to the ETS.
• The efficacy, safety, and the benefits of the COVID-19 vaccine, specifically a copy of this document: “https://www.google.com/url?q=https://www4.retailmerchants.com/e/234172/iA7TKteGXC2FpI7t43D-reserved-0/2ns76t/430211076?h%3D8ZZOQbyF8m_Bh-MV_xM1y2TnVTeFc4Gkwy37kJWcuAU&source=gmail&ust=1636743499109000&usg=AOvVaw127HAa3NoxUmu-y4C1GBlV" style="color: rgb(17, 85, 204); text-decoration: none;" rel="noopener">Key Things to Know About COVID-19 Vaccines”
• The fact that employers are prohibited from discriminating against an employee for reporting a work-related injury or illness and from discriminating against an employee for exercising rights under the ETS or the OSH Act.
• The existence of criminal penalties for knowingly supplying false statements or documentation.

By January 4, employers must:

• Implement a vaccine mandate and ensure that all workers are vaccinated.

- OR -

• Allow unvaccinated workers into the workplace if and only if they produce a negative test weekly and don masks. Employers choosing this option must create a weekly testing regime for unvaccinated employees. Any employee who receives a positive COVID-19 test or is diagnosed with COVID-19 by a licensed health care provider must be removed from the workplace. Employers may pass on the costs of the weekly testing to unvaccinated employees provided they do not have a disability-based or religious-based exemption. As for kinds of test, simple home rapid antigen test kits are acceptable, but the test cannot be both self-administered and self-read by the employee. The test must be done in “the presence of the employer or a healthcare or telehealth test proctor.”

The ETS does NOT apply to:

• Workplaces covered by OSHA’s earlier healthcare ETS
• Workplaces that are covered by the federal contractor vaccine
• Employees who do not report to a workplace where other individuals (e.g., coworkers or customers) are present
• Employee working from home
• Employees who work exclusively outdoors

Additional Details:

• Vaccination and ETS Landing Page
• Full Vaccination and Testing ETS Text
• Vaccination and Testing ETS Fact Sheet
• Vaccination and Testing ETS FAQs

The power of both the Executive Branch and all 100 Seats for the House of Delegates were up for grabs in yesterday’s election in Virginia. After a very late night, the numbers indicate that Republicans swept the top of the ticket, which hasn’t been done since 2009, and that the House has flipped to a razor-thin republican lead.

Going into the evening, Democrats held a 55 to 45 majority in the House of Delegates. Based on last night’s election Republicans picked up 7 seats, flipping the House to a 52-48 Republican-held Majority.

You can find a breakdown of both the statewide races as well as the House of Delegates races by clicking here.

It is important to note that these are the results as of the time of distribution. There are a few races that are extremely tight which may be subject to a recount. We will keep you informed as this unfolds.

CLICK TO VIEW BREAKDOWN OF RACES 

Know Where Candidates Stand Before Voting