General Assembly Update – Week 4

The 2024 legislative session moved into its fourth week last week, as both chambers worked to get through their bills before “crossover” on February 13. Crossover is when legislation that has cleared its original chamber moves to the other. Currently, there are still 2,160 bills in consideration; 168 have failed, and 139 have been continued until next year. We can expect this week to be very active, with long floor sessions, and committee sessions that extend late into the night in order for both Chambers to complete work on the remaining legislation prior to next Tuesday.

Legislation Breakdown

Below you will find a breakdown of legislation that was acted on over the last week. Your Virginia Retail Federation team will continue to keep you informed throughout the 2024 Session on all issues that impact your business.

Minimum Wage, Paid Leave/Unpaid Leave, Tax, Mandates, Miscellaneous, Cannabis, Consumer Protection, Unemployment Insurance/Workers Compensation, Energy, ABC, Tobacco, Transportation

jump to section

Minimum Wage

HB 1 – Minimum Wage, increase

Passed the House 51-Y 49-N

• Minimum wage. Increases the minimum wage from the current rate of $12.00 per hour to $13.50 per hour effective January 1, 2025, and to $15.00 per hour effective January 1, 2026. The bill satisfies a reenactment clause included in Chapters 1204 and 1242 of the Acts of Assembly of 2020.

HB 325 – Minimum Wage and Overtime Wages

On the House Floor

• Provides that an employer shall increase the amount paid to its tipped employees by an amount determined by the employer in accordance with the federal Fair Labor Standards Act and that, notwithstanding any other provision of law, a tipped employee who regularly performs services in the course of his employment for which there is no reasonable expectation of receiving tips shall receive an amount not less than the minimum wage for the time that he performs such services. The bill provides that tipped employees shall receive a cash wage of not less than $3.50 per hour starting on January 1, 2025. Starting on January 1, 2026, a tipped employee shall receive a cash wage of not less than $4.75 per hour, and starting on January 1, 2027, the amount of cash wage shall be not less than $6.00 per hour. Starting January 1, 2028, tips shall be excluded from any determination of wage paid to a tipped employee and the amount paid to such employee shall be not less than the minimum wage.

HB 335 – Tipped Wage

Reported from House Appropriations Committee with a substitute 12-Y 10-N

• Provides that an employer shall increase the amount paid to its tipped employees by an amount determined by the employer in accordance with the federal Fair Labor Standards Act and that, notwithstanding any other provision of law, a tipped employee who regularly performs services in the course of his employment for which there is no reasonable expectation of receiving tips shall receive an amount not less than the minimum wage for the time that he performs such services. The bill provides that tipped employees shall receive a cash wage of not less than $3.50 per hour starting on January 1, 2025. Starting on January 1, 2026, a tipped employee shall receive a cash wage of not less than $4.75 per hour, and starting on January 1, 2027, the amount of cash wage shall be not less than $6.00 per hour. Starting January 1, 2028, tips shall be excluded from any determination of wage paid to a tipped employee and the amount paid to such employee shall be not less than the minimum wage.

Paid Leave/Unpaid Leave

HB 38 – Employment paid sick leave, civil penalties

Reported from House Labor and Commerce with substitute and referred to House Appropriations Committee 12-Y 10-N

• Expands provisions of the Code that currently require one hour of paid sick leave for every 30 hours worked for home health workers to cover all employees of private employers and state and local governments. The bill requires that employees who are employed and compensated on a fee-for-service basis accrue paid sick leave in accordance with regulations adopted by the Commissioner of Labor and Industry. The bill provides that employees transferred to a separate division or location remain entitled to previously accrued paid sick leave and that employees retain their accrued sick leave under any successor employer. The bill allows employers to provide a more generous paid sick leave policy than prescribed by its provisions. Employees, in addition to using paid sick leave for their physical or mental illness or to care for a family member, may use paid sick leave for their need for services or relocation due to domestic abuse, sexual assault, or stalking.
  The bill provides that certain health care workers who work no more than 30 hours per month may waive the right to accrue and use paid sick leave. The bill also provides that employers are not required to provide paid sick leave to certain health care workers who are employed on a pro re nata, or as-needed, basis, regardless of the number of hours worked. The bill requires the Commissioner to promulgate regulations regarding employee notification and employer recordkeeping requirements.
  The bill authorizes the Commissioner, in the case of a knowing violation, to subject an employer to a civil penalty not to exceed $150 for the first violation, $300 for the second violation, and $500 for each successive violation. The Commissioner may institute proceedings on behalf of an employee to enforce compliance with the provisions of this bill. Additionally, an aggrieved employee is authorized to bring a civil action against the employer in which he may recover double the amount of any unpaid sick leave and the amount of any actual damages suffered as the result of the employer’s violation. The bill has a delayed effective date of January 1, 2025.

HB 737 – Paid Family and Medical Leave Insurance Program

Reported from House Labor and Commerce Committee to House Appropriations Committee 12-Y 10-N

• Requires the Virginia Employment Commission to establish and administer a paid family and medical leave insurance program with benefits beginning January 1, 2027. Under the program, benefits are paid to covered individuals, as defined in the bill, for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning January 1, 2026. The bill provides that the amount of a benefit is 80 percent of the employee’s average weekly wage, not to exceed 80 percent of the state weekly wage, which amount is required to be adjusted annually to reflect changes in the statewide average weekly wage. The bill caps the duration of paid leave at 12 weeks in any application year and provides self-employed individuals the option of participating in the program.

HB 1098 – Unpaid family bereavement leave

House Labor and Commerce Subcommittee recommends reporting 5-Y 2-N

• Requires that an employer that employs 50 or more employees provide eligible employees, defined in the bill, with up to 10 days of unpaid family bereavement leave in any 12-month period to (i) attend the funeral or funeral equivalent of a covered family member; (ii) make arrangements necessitated by the death of a covered family member; (iii) grieve the death of a covered family member; or (iv) be absent from work due to (a) a miscarriage, (b) an unsuccessful round of intrauterine insemination or of an assisted reproductive technology procedure, (c) a failed adoption match or an adoption that is not finalized because it is contested by another party, (d) a failed surrogacy agreement, (e) a diagnosis that negatively impacts pregnancy or fertility, or (f) a stillbirth. The bill requires the employee to provide notice of his intent to take the leave if reasonable and practicable and provides that an employer may require reasonable documentation of the death or event. 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 family bereavement 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 507 – Paid Leave Health Care and Grocery

Continued to 2025 in Senate Finance and Appropriations 15-Y 0-N

• Requires employers to provide paid sick leave to health care providers and grocery store workers. Under current law, employers are only required to provide paid sick leave to certain home health workers. The bill removes requirements that workers work on average at least 20 hours per week or 90 hours per month to be eligible for paid sick leave. The bill provides that certain health care providers may waive their right to accrue and use paid sick leave and provides an exemption for employers of certain other health care providers. The bill requires the Department of Labor and Industry to develop guidelines for retail employers that sell groceries to provide sick leave and to publish such guidelines by December 1, 2024. The provisions of the bill other than the requirement for the Department of Labor and Industry to develop guidelines have a delayed effective date of January 1, 2025.

SB 373 – Paid family and medical leave insurance program

Reported from Senate Commerce and Labor Committee and Referred to Finance and Appropriations Committee Meeting 9-Y 6-N

• Requires the Virginia Employment Commission to establish and administer a paid family and medical leave insurance program with benefits beginning January 1, 2027. Under the program, benefits are paid to covered individuals, as defined in the bill, for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning January 1, 2026. The bill provides that the amount of a benefit is 80 percent of the employee’s average weekly wage, not to exceed 80 percent of the state weekly wage, which amount is required to be adjusted annually to reflect changes in the statewide average weekly wage. The bill caps the duration of paid leave at 12 weeks in any application year and provides self-employed individuals the option of participating in the program.

Tax

HB 1536 – Sales and Use Tax, exemption for baby products

Continued to 2025 in House Finance Committee (defeated)

• Sales tax exemption; certain baby products

SB 110 – Sales Tax, exemption for food purchased for human consumption and essential personal hygiene

Passed by indefinitely in Senate Finance and Appropriations 10-Y 5-N

• Provides an exemption from local sales and use tax beginning July 1, 2024, for food purchased for human consumption and essential personal hygiene products. The bill also provides an allocation of state revenues to fund the distribution to localities for funding that would have been distributed to them absent the exemption created by the bill. Under current law, such products are exempt from state sales and use tax but are subject to the standard local rate of one percent.

SB 14 – Sales Tax – additional tax authorized in all counties and cities to support schools

Passed the Senate 27-Y 13-N

• Authorizes all counties and cities 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 if such levy is approved in a voter referendum. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax.

Mandates

HB 160 – Workplace Poster for Veterans for benefits and services

Passed the House 98-Y 0-N

• Directs the Department of Labor and Industry, in consultation with the Department of Veterans Services, to create a poster describing benefits and services available to veterans and allows employers to request and display such poster in the workplace. The bill enumerates a minimum group of resources the poster shall include, including (i) Department of Veterans Services’ programs, contact information, and website address; (ii) substance abuse and mental health treatment resources; (iii) educational, workforce, and training resources; (iv) tax benefits; (v) eligibility for unemployment insurance benefits; (vi) legal services; and (vii) the U.S. Department of Veterans Affairs Veterans Crisis Line.

HB 569 – Employment discrimination; employee notification of federal and state statute of limitations

On the House floor

• Requires an employer who receives an employee complaint alleging sexual assault, harassment, or any other form of discrimination for which the employee may seek enforcement by the U.S. Equal Employment Opportunity Commission (EEOC) or the Office of the Attorney General to notify such employee that a charge may be filed with the EEOC or the Office of the Attorney General within 300 days after the alleged unlawful discriminatory practice occurred. The bill also requires an employer to provide this information as part of any new employee training provided at the commencement of employment or anti-discrimination training provided to an employee.

HB 990 and SB 370 – Employer seeking wage or salary history

On the Floor of the House

On the Floor of the Senate

• wage or salary range transparency; cause of action; civil penalty. Prohibits a prospective employer from (i) seeking the wage or salary history of a prospective employee; (ii) relying on the wage or salary history of a prospective employee in determining the wages or salary the prospective employee is to be paid upon hire; (iii) relying on the wage or salary history of a prospective employee in considering the prospective employee for employment; (iv) refusing to interview, hire, employ, or promote a prospective employee or otherwise retaliating against a prospective employee for not providing wage or salary history; and (v) failing or refusing to disclose in each public and internal posting for each job, promotion, transfer, or other employment opportunity the wage, salary, or wage or salary range. The bill establishes a cause of action for an aggrieved prospective employee or employee and provides that an employer that violates such prohibitions is liable to the aggrieved prospective employee or employee for statutory damages between $1,000 and $10,000 or actual damages, whichever is greater, reasonable attorney fees and costs, and any other legal and equitable relief as may be appropriate. The bill also provides for civil penalties for violations not to exceed $1,000 for a first violation, $2,000 for a second violation, and $4,000 for a third or subsequent violation.

Miscellaneous

HB 474 – Bathroom Bill

Referred back to House Courts Committee from Floor of the House

• Requires a retail establishment that does not have a public restroom but has an employee toilet facility to allow any customer with an eligible medical condition, defined in the bill as Crohn’s disease, ulcerative colitis, irritable bowel syndrome, or any other medical condition that requires immediate access to a toilet facility, to use such employee toilet facility during normal business hours if certain conditions are met. A customer who suffers loss as a result of a violation may bring an action to recover damages not to exceed $100.

HB 644 – Gas-powered leaf blowers – local prohibition or regulation

Referred back to House Counties Cities and Towns Committee from the Floor of the House

• Provides that any locality may by ordinance prohibit or regulate the use of gas-powered leaf blowers. The ordinance may include provisions for a civil penalty.

HB 770 – Retaliatory action against employee prohibited; remedies available

On the Floor of the House

• Provides that a violation of certain provisions regarding retaliatory action against employees may be alleged in a court of competent jurisdiction within one year of the employer’s final prohibited retaliatory action. The bill states that in such cases, treble damages may be awarded if such violation was willful.

HB 1167 – English Ivy; local prohibition on sale

Reported from House Agriculture, Chesapeake, and Natural Resources 14-Y 8-N, now on the Floor of the House

• Authorizes any locality to adopt an ordinance prohibiting the sale of English ivy, with violations punishable by a civil penalty not to exceed $50 for a first violation and not to exceed $200 for a subsequent violation within 12 months.

HB 47 – Invasive Plant Species

Passed the House 52-Y 47-N

• Requires, for the retail sale of any invasive plant species on a list established by the Department of Conservation and Recreation, such plant be accompanied by conspicuous signage that identifies the plant as invasive and includes the words “Plant with caution: invasive plant species. May cause environmental harm. Ask about alternatives.”

SB 306 – Invasive Plant Species

On the floor of the Senate

• Requires, for the retail sale of any invasive plant species for outdoor use on a list established by the Department of Conservation and Recreation, such plant be accompanied by conspicuous signage that identifies the plant as invasive. The bill requires the Commissioner of Agriculture and Consumer Services to designate the format, size, and content of such signage no later than October 1, 2024, and requires the Commissioner to issue a stop sale order and mark or tag a plant in a conspicuous manner when an invasive plant is for sale at a retail outlet without appropriate signage. In such case, the bill requires the Commissioner to give written notice of a finding made to the owner, tenant, or person in charge of such retail outlet and requires the stop sale order issued to remain in effect until the required signage is posted. Any person who violates the provisions of the bill is subject to a civil penalty not to exceed $500.

Cannabis

HB 698 – Cannabis Control – retail market

House General Laws Subcommittee recommended reporting, with substitute, 5-Y 0-N

• Establishes a framework for the creation of a retail marijuana market in the Commonwealth, to be administered by the Virginia Cannabis Control Authority. The bill allows the Authority to begin issuing all marijuana licenses on July 1, 2025; however, the bill allows certain pharmaceutical processors to begin operations on July 1, 2024, and allows a limited number of other licensees to begin operations on January 1, 2025.

SB 448 – Cannabis Control – retail market

Reported from Senate Courts of Justice Committee and referred to Senate Finance and Appropriations Committee 7-Y 5-N 3-A

• Establishes a framework for the creation of a retail marijuana market in the Commonwealth, which would be administered by the Virginia Cannabis Control Authority. The bill allows the Authority to begin issuing marijuana licenses on July 1, 2024, but provides that no marijuana sales may occur prior to January 1, 2025.

Consumer Protection

HB 228 – Consumer Protection, recycling information on products

Continued into 2025 (defeated)

• Prohibits the sale or offering for sale of any product that indicates on the product’s container or packaging that such container or packaging is recyclable unless such container or packaging is made out of a material that is recyclable under a majority of regional and local waste management plans. The bill requires the Virginia Waste Management Board to maintain a list of all materials that are recyclable under a majority of regional and local waste management plans adopted and to make such list available on the Department of Environmental Quality’s website.

HB 744 – Automatic Renewal or Continuous Service Offers

On the floor of the House

• Requires a supplier making automatic renewal or continuous service offers that automatically renew after more than 30 days and extend the automatic renewal or continuous service offer for more than a period of 12 months to notify the consumer of the option to cancel no less than 30 days and no more than 60 days before the cancellation deadline or the end of the current contract term.

SB 252 – Consumer Data Protection Act; controller privacy notice, consumer consent

Continued to 2025 in General Laws and Technology (defeated) 15-Y 0-N

• Requires the privacy notice that a controller must provide to consumers to include a method by which a consumer may opt out of the automatic placement of a data file, commonly referred to as a “cookie,” on the consumer’s computer or web browser and a disclosure of the purposes for which the data files are used. The bill prohibits controllers from using cookies, except those that are strictly necessary, without the prior express consent of the consumer and prohibits controllers from preventing access to their services if such consent is not granted. The bill also requires controllers to document and store proof of such consent and make available an easily accessible method by which consumers may withdraw such consent.

SB 388 – Consumer Protection, Mandator Fee Disclosure

On the Floor of the Senate

• Prohibits a supplier in connection with a consumer transaction from advertising, displaying, or offering any pricing information for goods or services without prominently displaying the total price, which shall include all mandatory fees or charges other than taxes imposed.

Unemployment Insurance/Workers Compensation

HB 205 – Worker’s Comp – Prompt payment

Passed the House 97-Y 1-N

• Prohibits an employer or workers’ compensation carrier from seeking recovery of a payment made to a health care provider for health care services rendered to a claimant, unless such recovery is sought less than one year from the date payment was made to the health care provider. Under current law, such prohibition only applies to services rendered after July 1, 2014.
  The bill also prohibits a health care provider from submitting a claim to the Workers’ Compensation Commission contesting the sufficiency of payment for health care services rendered to a claimant unless such claim is filed within one year of the date the last payment is received by the health care provider. Under current law, such prohibition only applies to services rendered after July 1, 2014.

HB 531 and SB 520 – Worker’s Comp; injuries caused by repetitive and sustained physical stressors

Reported from House Labor and Commerce Committee and referred to House Appropriations Committee 12-Y 10-N

Continued to 2025 in Senate Finance and Appropriations (defeated) 15-Y 0-N

• Provides that, for the purposes of the Virginia Workers’ Compensation Act, “occupational disease” includes injuries or diseases from conditions resulting from repetitive and sustained physical stressors, including repetitive and sustained motions, exertions, posture stresses, contact stresses, vibrations, or noises. The bill provides that such injuries or diseases are covered under the Act and that such coverage does not require that such repetitive or sustained physical stress occurred over a particular time period, provided that the time period over which such physical stress occurred can be reasonably identified.

HB 974 – Worker’s Comp – presumption that certain injuries arose out of employment

On the Floor of the House

• Provides that in any claim for workers’ compensation, where the employee suffers an unexplained fall in the course of employment, it shall be presumed that the fall arose out of the employment, unless such presumption is overcome by a preponderance of competent evidence to the contrary.

SB 241 – Worker’s Comp – notice of right to dispute claim

Passed the Senate 29-Y 11-N

• Requires that when an employee’s workers’ compensation claim is denied, an employer or insurer shall include in its letter denying benefits a notice that the employee has a right to dispute the claim denial through the Virginia Workers’ Compensation Commission.

SB 382 – Unemployment compensation; collection of overpayments

On the Floor of the Senate

• Provides that collection activities for an overpayment, provided that such overpayment was not caused by fraud on the part of the claimant, shall be suspended and that the Virginia Employment Commission shall determine as uncollectable and discharge the overpayment if it remains unpaid after the earliest of the following: (i) after the expiration of three years from the last day of the benefit year in which the overpayment was made, (ii) immediately upon the death of the claimant, or (iii) upon the claimant’s discharge in bankruptcy occurring subsequently to the determination of payment.

Energy

HB 469 – Retail competition, aggregated competitive purchasers

Stricken from the Docket

• Creates a limited exception to the requirement that the State Corporation Commission must find that a petition for certain competitive purchasers to aggregate their demands to become qualified to purchase retail electric energy is consistent with the public interest in order for the Commission to approve such petition. The bill provides that a customer seeking such approval may remunerate the utility for any adverse effects to the incumbent utility or its remaining utility customers contrary to the public interest as determined by the Commission. The bill also provides that such customers shall not be denied permission to procure retail electric energy from a competitive supplier and that such remuneration fee shall be recalculated by the Commission on a triennial basis from when a customer commences a competitive service agreement.

ABC

HB 522 – ABC Advertisements

Passed the House 93-Y 5-N

• Directs the Board of Directors of the Virginia Alcoholic Beverage Control Authority to promulgate regulations that prescribe the terms and conditions under which manufacturers, brokers, importers and wholesalers may advertise and promote alcoholic beverages via the Internet, social media, direct-to-consumer electronic communication, or other electronic means.

HB 688 and SB 635 – ABC Sale and Delivery of Alcohol

Passed the House 81-Y 18-N

Passed the Senate 40-Y 0-N

• Repeals the July 1, 2024, sunset on provisions that allow (i) distillers that have been appointed as agents of the Board of Directors of the Virginia Alcoholic Beverage Control Authority, mixed beverage restaurant licensees, and limited mixed beverage restaurant licensees to sell mixed beverages for off-premises consumption and (ii) farm winery licensees to sell pre-mixed wine for off-premises consumption. The bill also repeals, effective July 1, 2026, third-party delivery licenses. The bill requires the Authority to convene a work group to review third-party delivery licenses and report its findings and recommendations to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 15, 2024.

Tobacco

HB 947 – Local Gov, reg by ordinance for locations of tobacco products

Passed the House 99-Y 0-N

• Requires a locality, during any amendment to its comprehensive plan that takes place after July 1, 2024, to incorporate into its comprehensive plan strategies to limit vape shops near schools for the purpose of reducing use of nicotine vapor products by youth.

HB 1036 – Nicotine Vapor Products, localities by ordinance to impose a sales and use tax on products

Stricken from the docket

• Authorizes localities by ordinance to impose a sales and use tax on nicotine vapor products, defined in the bill to include liquid nicotine in closed and open systems, as such terms are defined in the bill, and includes directives for the administration and enforcement of any such ordinance. The bill also directs the Department of Taxation to consult with localities, the Virginia Association of Counties, and the Virginia Municipal League for implementing and administering such local taxation of nicotine vapor products.

Transportation

HB 924 – Transportation Network Companies; delivery network companies, publishing and disclosure requirements

House Transportation Subcommittee recommends reporting with substitute 5-Y 3-N

• Requires a transportation network company or delivery network company, defined in the bill, to publish on its public website and associated digital platform information about (i) the portion of each fare, in the aggregate, that goes to the TNC or DNC partner, defined in the bill, and to the transportation network company or delivery network company; (ii) on average, how much TNC partners and DNC partners work and earn; and (iii) the average amount of expenses TNC partners and DNC partners incur in the course of such work. The bill requires a transportation network company or delivery network company to disclose to TNC partners and DNC partners the use of any nonlinear compensation system, defined in the bill, and details about such companies’ deactivation process, defined in the bill, for TNC partners and DNC partners. The bill requires transportation network companies and delivery network companies to provide TNC partners and DNC partners with information regarding the fare and the amount they will be paid and the location or locations to which they will be driving on a trip prior to any requirement to accept or decline such trip.