Resources

Small Business

HB 1830 - Head - Virginia Small Business Financing Authority; members to have small business lending experience. Passed the Senate 39-Y 0-N)

• Requires at least five of the nine citizen members of the Virginia Small Business Financing Authority to have experience in small business lending.
• This bill is a recommendation of the Joint Legislative Audit and Review Commission.

HB 2172 - Mundon King - Small, women-owned, and minority-owned businesses; right to appeal denial of initial certification (Passed the Senate 39-Y 0-N)

• Requires the Department of Small Business and Supplier Diversity to adopt regulations to establish a process for businesses that are denied initial certification as a small, women-owned, or minority-owned business to appeal such denial on the basis that the Department made a mistake in denying the business's application for certification.
• This bill is a recommendation of the Joint Legislative Audit and Review Commission.

Product Ban—Still Active

HB 2250 - Kory - Humane Cosmetics Act; civil penalties. (Rereferred from Commerce and Labor to Senate Agriculture, Conservation and Natural Resources 14-Y 0-N)

• Prohibits a cosmetics manufacturer, as defined in the bill, from testing cosmetics on animals in the Commonwealth, effective July 1, 2021.
• The bill also prohibits the sale in the Commonwealth, effective January 1, 2022, of any cosmetic that was developed or manufactured using animal testing on or after July 1, 2021, with certain exceptions.
• Attorneys for the Commonwealth may investigate alleged violations and information about testing provided to them is protected as a trade secret.
• Violations are subject to a civil penalty of up to $5,000 and an additional $1,000 for each day the violation continues.
• The bill preempts any local regulation on cosmetic animal testing.

SB 1379 - Boysko - Humane Cosmetics Act; civil penalties. (Reported from House Labor and Commerce Committee 14-Y 7-N)

• Prohibits the testing of cosmetics on animals in the Commonwealth, effective July 1, 2021.
• The bill also prohibits the sale by any cosmetics manufacturer, defined in the bill, in the Commonwealth, effective January 1, 2022, of any cosmetic that was developed or manufactured using animal testing on or after July 1, 2021, with certain exceptions.
• Attorneys for the Commonwealth may investigate alleged violations and information about testing provided to them is protected as a trade secret. Violations are subject to a civil penalty of up to $5,000 and an additional $1,000 for each day the violation continues.
• The bill preempts any local regulation on cosmetic animal testing.

Tobacco - Defeated

HB 2164 - Hope - Tobacco; prohibits person from selling product at retail without license from ABC Authority. (Laid on the Table (defeated) by House Appropriations Subcommittee 7-Y 0-N)

• The bill prohibits any person from selling any tobacco product at retail without first obtaining a license from the Alcoholic Beverage Control Authority (the Authority). The bill prohibits the sale of tobacco products and hemp products intended for smoking from vending machines. The bill imposes civil penalties on licensees for selling tobacco products without a license and for selling tobacco products to persons under age 21. Licenses would be subject to annual renewal and subject to revocation for violations of federal, state, or local laws related to tobacco products. The bill creates the Tobacco Retail Administration Subfund for the purpose of funding the Authority's costs of administering licenses and enforcing laws related to tobacco retail licensing.
• The bill updates, for the purpose of the crime of selling or distributing tobacco products to a person younger than 21 years of age, the definition of "tobacco products" by including in such definition products currently defined as nicotine vapor products or alternative nicotine products. The bill also removes provisions prohibiting the attempt to purchase, purchase, or possess tobacco products and hemp products intended for smoking by persons younger than 21 years of age. The bill also removes the exception allowing the sale of tobacco products to active-duty military personnel who are 18 years of age or older.

Food Delivery—Still Active

HB 2062 - Willett - Food delivery platforms; agreements required, penalty. (Passed the House 90-Y 8-N)

• Prohibits a food delivery platform, as defined in the bill, from submitting orders on behalf of a consumer or arranging for the delivery of an order from a restaurant, as defined in the bill, without first obtaining an agreement with the restaurant expressly authorizing the food delivery platform to take orders and deliver food prepared by the restaurant. The bill provides that a violation of such agreement requirement is a prohibited practice under the Virginia Consumer Protection Act.

ABC

ABC legislation that is still active:

HB 1845 - VanValkenburg - Alcoholic beverage control; license fee reform. (Reported from Senate Rehabilitation and Social Services 14-Y 0-N)

• Delays the effective date of the 2020 alcoholic beverage control license and fee reform from July 1, 2021, to January 1, 2022.
• During the period of delay, and subject to certain requirements, the bill allows on-premises wine or beer licensees to sell wine or beer for off-premises consumption and allows such licensees, as well as off-premises wine or beer licensees, to deliver wine or beer that the licensee is authorized to sell without a delivery permit.
• The bill contains a technical amendment and an emergency clause.

HB 1879 - Bulova - Alcoholic beverage control; sale and delivery of mixed beverages and pre-mixed wine. (Reported from Senate Rehabilitation and Social Services Committee 14-Y 0-N)

• Allows distillers that have been appointed as agents of the Board of Directors (the Board) of the Virginia Alcoholic Beverage Control Authority (the Authority), mixed beverage restaurant licensees, and limited mixed beverage restaurant licensees to sell mixed beverages for off-premises consumption and deliver such mixed beverages to consumers subject to requirements set forth in the bill.
• The bill allows the Board to summarily revoke a licensee's privileges to sell and deliver mixed beverages for off-premises consumption for noncompliance with the requirements set forth in the bill or applicable provisions of current law.
• The bill also allows farm winery licensees to sell pre-mixed wine for off-premises consumption.
• The bill directs the Authority to convene a work group to study the sale and delivery of mixed beverages and pre-mixed wine for off-premises consumption and report its findings to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 1, 2021.
• The provisions of the bill sunset on July 1, 2022.

HB 2131 - Lopez - Alcoholic beverage control; license application, locality input. (Reported from Senate Rehabilitation and Social Services Committee 14-Y 0-N)

• Adds the chief administrative officer of a locality to the list of persons who may be sent notice of certain license applications by the Board of Directors (the Board) of the Virginia Alcoholic Beverage Control Authority.
• The bill also expands the definition of criminal blight, for which the locality may require a property owner to take corrective action, to include a condition existing on real property that endangers public health or safety and is caused by (i) the regular presence on the property of persons in possession of controlled substances and (ii) the discharge of a firearm under certain conditions.

HB 2266 - Ayala - Alcoholic beverage control; local outdoor refreshment areas. (Reported from Senate Rehabilitation and Social Services Committee 14-Y 0-N)

• Renames the "local special events" license as the "outdoor refreshment area" license.
• The bill allows the Board of Directors of the Virginia Alcoholic Beverage Control Authority to increase the frequency and duration of events held under such license after adoption of an ordinance by a locality requesting such increase in frequency and duration.
• Under current law, localities are limited to holding 16 events per year under such license, with each event lasting no more than three consecutive days, except during the effective dates of any rule, regulation, or order that is issued by the Governor or State Health Commissioner to meet a public health emergency and that effectively reduces allowable restaurant seating capacity.
• The bill also increases the state and local license fees for outdoor refreshment area licenses issued pursuant to a local ordinance.
• This bill incorporates HB 2051.

SB 1299 - Bell - Alcoholic beverage control; sale and delivery of mixed beverages and pre-mixed wine. (Reported from House General Laws Committee 20-Y 2-N)

• Allows distillers that have been appointed as agents of the Board of Directors (the Board) of the Virginia Alcoholic Beverage Control Authority (the Authority), mixed beverage restaurant licensees, and limited mixed beverage restaurant licensees to sell mixed beverages for off-premises consumption and deliver such mixed beverages to consumers subject to requirements set forth in the bill.
• The bill allows the Board to summarily revoke a licensee's privileges to sell and deliver mixed beverages for off-premises consumption for noncompliance with the requirements set forth in the bill or applicable provisions of current law.
• The bill also allows farm winery licensees to sell pre-mixed wine for off-premises consumption.
• The bill directs the Authority to convene a work group to study the sale and delivery of mixed beverages and pre-mixed wine for off-premises consumption and report its findings to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 1, 2021.
• The provisions of the bill sunset on July 1, 2022.
• This bill incorporates SB 1388.

Workers Compensation

HB 1985 - Hurst - Workers' compensation; presumption of compensability for COVID-19. (Reported from Senate Commerce and Labor Committee and Referred to Finance and Appropriations 15-Y 0-N)

• Establishes a presumption that COVID-19 causing the death or disability of health care providers is an occupational disease compensable under the Workers' Compensation Act.
• The bill provides that the COVID-19 virus is established by a positive diagnostic test for COVID-19, an incubation period consistent with COVID-19, and signs and symptoms of COVID-19 that require medical treatment.
• The bill provides that such presumption applies to any death or disability occurring on or after March 12, 2020, caused by infection from the COVID-19 virus, provided that for any such death or disability that occurred on or after March 12, 2020, and prior to December 31, 2021, the claimant received a positive diagnosis of COVID-19 from a licensed physician, after either a presumptive positive test or a laboratory-confirmed test for COVID-19, and presented with signs and symptoms of COVID-19 that required medical treatment.
• The bill provides that such presumptions do not apply to any person offered by his employer a vaccine for the prevention of COVID-19 unless the person's physician determines in writing that immunization would pose a significant risk to the person's health.

HB 2207 - Jones - Workers' compensation; presumption of compensability for COVID-19. (Reported from Senate Commerce and Labor Committee and Referred to Finance and Appropriations 15-Y 0-N)

• Establishes a presumption that COVID-19 causing the death or disability of firefighters, emergency medical services personnel, law-enforcement officers, and correctional officers is an occupational disease compensable under the Workers' Compensation Act.
• The bill provides that the COVID-19 virus is established by a positive diagnostic test for COVID-19, an incubation period consistent with COVID-19, and signs and symptoms of COVID-19 that require medical treatment.
• The bill provides that such presumption applies to any death or disability occurring on or after March 12, 2020, caused by infection from the COVID-19 virus, provided that for any such death or disability that occurred on or after March 12, 2020, and prior to December 31, 2021, the claimant received a diagnosis of COVID-19 from a licensed physician, after either a presumptive positive test or a laboratory confirmed test for COVID-19, and presented with signs and symptoms of COVID-19 that required medical treatment.

SB 1375 - Saslaw - Workers' compensation; presumption of compensability for COVID-19. (Reported from House Labor and Commerce with Substitute 21-Y 0-N)

• Establishes a presumption that COVID-19 causing the death or disability of firefighters and emergency medical services personnel is an occupational disease compensable under the Workers' Compensation Act.
• The provisions of the bill will be effective retroactive to March 1, 2020.

Transportation – Defeated 

HB 1910 - Cole, J.G. - Regional transportation authorities; creation (Left in House Transportation Committee (defeated))

• Authorizes two or more adjacent counties or cities to form a regional transportation authority to engage in regional transportation projects. The bill sets forth the procedures for forming such authority and determining the membership of its governing board. Ordinances adopted by each member of such authority would set forth the local taxes, fees, and revenues to be contributed by each locality to such authority.

HB 1871 - Batten - Motor vehicles used for the delivery of property; trade dress. (Laid on the table in House Transportation Subcommittee (defeated) 10-Y 0-N)

• Requires motor vehicles used for the delivery of property to the purchaser to display a logo, insignia, or emblem identifying the person or entity with which the driver of the vehicle is associated during the delivery.

Environmental

HB 1965 - Bagby - State Air Pollution Control Board; low-emissions and zero-emissions vehicle program. (Reported from Senate Commerce and Labor Committee 11-Y 4-N)

• Directs the State Air Pollution Control Board to implement a low-emissions and zero-emissions vehicle program for motor vehicles with a model year of 2025 and later. Regulations adopted by the Board to implement the program are exempt from the Administrative Process Act and shall not become effective prior to January 1, 2024.

SB 1282 - Morrissey - Greenhouse gas emissions inventory; regulations. (House Agriculture, Chesapeake and Natural Resources Subcommittee recommends reporting 6-Y 2-N)

• Directs the Department of Environmental Quality to conduct a statewide baseline and projection inventory of all greenhouse gas emissions and to update such inventory every four years.
• The bill requires that the inventory be published and included in the annual report of the State Air Pollution Control Board.
• The bill also authorizes the Board to adopt regulations necessary to collect data needed to conduct, update, and maintain the inventory. The bill exempts proprietary information collected by the Department from the mandatory disclosure requirements of the Virginia Freedom of Information Act.

SB 1284 - Favola - Commonwealth Clean Energy Policy. (House Labor and Commerce Subcommittee Recommends Reporting 6-Y 4-N)

• Establishes the Commonwealth Clean Energy Policy, replacing the Commonwealth Energy Policy. The bill sets out the energy policy and objectives of the Commonwealth Clean Energy Policy, which include: (i) the Commonwealth recognizes that effectively addressing climate change and enhancing resilience will advance the health, welfare, and safety of the residents of the Commonwealth and that addressing climate change requires reducing greenhouse gas emissions across the Commonwealth's economy sufficient to reach net-zero emission by 2045 in all sectors, including the electric power, transportation, industrial, agricultural, building, and infrastructure sectors; (ii) the Commonwealth recognizes the need to promote environmental justice and ensure that it is carried out throughout the Commonwealth and the need to address and prevent energy inequities in historically economically disadvantaged communities; and (iii) the Commonwealth must continue to prioritize economic competitiveness and workforce development in an equitable manner.

Energy

HB 1859 - Guy - Clean energy and other programs; local financing when owner costs are incurred.  (Passed both the House and the Senate and is now before the Governor for Signature)

• Changes the parameters for local ordinances authorizing loan contracts for the installation by property owners of clean energy, resiliency, or stormwater management improvements.
• The bill provides that if the property owner incurred the costs of improvements to be refinanced or reimbursed within the two years prior to the closing date of the financing, the loan amount may include the total costs of the improvements to be refinanced or reimbursed.
• The bill removes the requirement that the applicable local ordinance include the proposed interest rate for the loan program and the maximum aggregate dollar amount that may be financed with respect to a property, and it provides that no loan offered under the program shall be used to improve a residential dwelling that contains fewer than five dwelling units or a residential condominium.
• The bill alters the fee options available to the locality and provides that the placement of a voluntary special assessment lien does not require a new assessment of the value of the real property.
• The bill contains technical amendments.

HB 1907 - Sullivan - Electric utilities; advanced renewable energy buyers. (Reported from Senate Commerce and Labor Committee 15-Y 0-N)

• Provides that certain accelerated renewable energy buyers that are customers of Dominion Energy Virginia and had subscribed to, as of March 1, 2020, a voluntary companion experimental tariff offering for the purchase of renewable attributes from renewable energy facilities that requires a renewable facilities agreement and the purchase of a minimum of 2,000 renewable attributes annually is exempt from the allocation of the net costs related to procurement of new solar or onshore wind generation capacity, energy, or environmental attributes, or energy storage facilities, by Dominion Energy Virginia.
• The exemption is based on the amount of Renewable Energy Certificates associated with the customer's renewable facilities agreements associated with the tariff offering in proportion to the customer's total electric energy consumption, on an annual basis.

HB 1919 - Kory - Local green banks; authorizes a locality, by ordinance, to establish. (Reported from Senate Committee on Local Government with substitute 8-Y 5-N)

• Authorizes a locality, by ordinance, to establish a green bank to promote the investment in clean energy technologies in its locality and provide financing for clean energy technologies, defined in the bill.
• The bill establishes certain powers and functions of a green bank, including developing rules and procedures, financing and providing loans for clean energy projects, and stimulating demand for renewable energy.
• The bill requires the green bank to be a public entity, quasi-public entity, or nonprofit entity and requires the locality to hold a hearing and publish notice in a newspaper of general circulation prior to establishing the green bank.

SB 1420 - Edwards - Electric utilities; non-jurisdictional customers; third party power purchase agreements. (Reported from Labor and Commerce 21-Y 0-N)

• Provides that for pilot programs under which an owner or operator of a renewable energy generation facility sells electricity to an eligible customer-generator through a third-party power purchase agreement, both jurisdictional and non-jurisdictional customers may participate on a first-come, first-serve basis.

Defeated:

HB 1914 - Helmer - Electric utilities; triennial review, period costs, rate reductions. (Passed by Indefinitely (defeated) in Senate Commerce and Labor Committee 8-Y 7-N)

• Provides that in a triennial review proceeding, certain utility generation and distribution costs that are not proposed for recovery under various cost recovery mechanisms, at the State Corporation Commission's discretion, may be attributed to the test periods under review and deemed fully recovered or, if the utility has earned below a certain threshold, may be deferred for recovery over future periods.
• Under current law, such attribution is required unless the utility has earned below a certain threshold, in which case deferred recovery of the costs is required.
• The provisions of the bill apply to the first triennial review of Dominion Energy Virginia conducted after January 1, 2021.
• This bill incorporates HB 1835.

HB 1984 - Hudson - Electric utilities; triennial review, proceeding by SCC, fair rates of return. (Passed by Indefinitely (defeated) with letter to the commission 11-Y 4-N)

• Provides that the State Corporation Commission, in any triennial review proceeding, including the first triennial review proceeding conducted after January 1, 2021, for Dominion Energy Virginia, may use any methodology it finds consistent with the public interest to determine fair rates of return on common equity for the utility's generation and distribution services.
• In any such triennial review, regardless of whether the utility earned above or below its authorized rate of return during the test period under review, the Commission also may order any increases or decreases to the utility's rates for generation and distribution that it deems necessary and appropriate, as long as the resulting rates provide the utility with the opportunity to (i) fully recover its costs of providing its services and (ii) earn an authorized rate of return.

HB 2048 - Bourne - Electric utility regulation; purchasing from competitive suppliers. (Passed by indefinitely (defeated) with letter to the commission 11-Y 4-N)

• Authorizes individual retail customers of electric energy to purchase electric energy provided 100 percent from renewable energy from any licensed competitive supplier of electric energy, including any incumbent electric utility.
• Currently, such customers may purchase electric power from such suppliers, other than an incumbent electric utility that is not the incumbent electric utility serving the exclusive territory in which the customer is located, only if their incumbent electric utility does not offer an approved tariff for electric energy provided 100 percent from renewable energy.
• The measure also provides that a cooperative utility customer eligible to take service under a tariff for electric energy provided 100 percent from renewable energy is prohibited from purchasing electric energy provided 100 percent from renewable energy from a licensed supplier, except such customer is authorized to continue purchasing renewable energy pursuant to the terms of a power purchase agreement in effect on the date the cooperative serving it filed with the Commission such tariff for electric energy provided 100 percent from renewable energy for the duration of such agreement.
• The measure requires that, within three months after the enactment of this act or within three months after beginning to offer a 100 percent renewable energy product to residential customers, whichever is later, licensed competitive suppliers that offers 100 percent renewable energy to residential customers in the service territory of Dominion Energy Virginia or Appalachian Power, to submit a proposal to the State Corporation Commission for consideration and approval to offer discounted service to low-income customers.
• The measure requires such proposal to include a 100 percent renewable product to be offered to a minimum number of low-income customers at a rate ten percent lower than the incumbent electric utility’s standard residential rate for non-renewable supply service for a minimum initial term of twelve months.

HB 2049 - Bourne - Electric utilities; eliminates customer credit reinvestment offsets. (Passed by indefinitely (defeated) with letter to the commission 11-Y 4-N)

• Eliminates customer credit reinvestment offsets under which a utility is allowed, upon request, to reduce or eliminate amounts of overearnings that otherwise would be required to be credited to customers by applying a customer credit reinvestment offset for expenses on new solar and wind generation facilities and electric distribution grid transformation projects.

HB 2200 - Jones - Electric utilities; triennial review. (Passed by indefinitely (defeated) with letter to the commission 11-Y 4-N)

• Makes various changes to procedures under which the State Corporation Commission reviews the earnings and sets the rates of investor-owned incumbent electric utilities. The bill requires the Commission, in determining a fair rate of return on common equity for an investor-owned utility, to consider the average of either (i) the returns on common equity reported to the Securities and Exchange Commission for the three most recent annual periods for which such data is available by not less than a majority of a selected peer group of the utility or (ii) the authorized returns on common equity that are set by the applicable regulatory commissions for the same selected peer group. Under current law, the Commission is required to set such return not lower than either such average.
• The bill provides that in a triennial review proceeding, certain utility generation and distribution costs that are not proposed for recovery under various cost recovery mechanisms, at the Commission's discretion, may be attributed to the test periods under review and deemed fully recovered or, if the utility has earned below a certain threshold, may be deferred for recovery over future periods. Under current law, such attribution is required unless the utility has earned below a certain threshold, in which case deferred recovery of the costs is required.
• The bill requires the Commission to direct that 100 percent of the amount of a utility's earnings above a certain threshold be credited to customers' bills. Under current law, the Commission is required to direct that 70 percent of such overearnings be credited to customers' bills.
• The bill provides that if revenue reductions related to energy efficiency measures or other programs cause a utility to earn below a certain threshold, or if for reasons other than revenue reductions the utility earns below a certain threshold, the Commission may order increases to the utility's rates for generation and distribution services necessary to recover such revenue reductions.
• Under current law, the Commission is required to order such an increase. The bill eliminates provisions that limit any rate reduction ordered by the Commission in the first triennial review of Dominion Energy Virginia after January 1, 2021, to $50 million in annual revenues.
• The bill provides that the Commission may determine that certain capital investment amounts by a utility may offset any customer bill credit amounts. Under current law, such the Commission is required to determine that such investments offset customer bill credit amounts.
• The bill provides that in any triennial review the Commission may order any rate increase or decrease to a utility's rates for generation and distribution services it deems necessary and appropriate, so long as the resulting rates provide the utility with the opportunity to fully recover its costs and earn an authorized rate of return on its generation and distribution services.
• The provisions of the bill apply to all triennial reviews, including the first triennial review of Dominion Energy Virginia conducted after January 1, 2021.
• This bill incorporates HB 2057.

TANF – Still Active

HB 1820 - Helmer - Temporary Assistance for Needy Families; food stamp program, eligibility, postsecondary education. (Reported from Senate Rehabilitation and Social Services 15-Y 0-N, and Rereferred to Finance and Appropriations Committee)

• Allows Temporary Assistance for Needy Families (TANF) and food stamp recipients, to the extent permitted by federal law and regulations, to satisfy or earn exemption from applicable work and training requirements through enrollment in postsecondary education.
• The bill directs the Department of Social Services to utilize certain strategies to promote such postsecondary education opportunities and streamline the process for certifying compliance therewith.
• The bill also directs the Board of Social Services, in implementing the Commonwealth's food stamp program, to (i) establish broad-based categorical eligibility, (ii) set the gross income eligibility standard at 200 percent of the federal poverty guidelines, and (iii) not impose an asset limit.

Minimum Wage

Minimum Wage Legislation that is still active: 

HB 1786 - Ward - Minimum wage; farm laborers or farm employees. (Passed the House 55-Y 44-N)

• Eliminates the exemption from Virginia's minimum wage requirements for persons employed as farm laborers or farm employees.

Minimum Wage legislation that has been defeated: 

HB 2270 - Marshall - Minimum wage; effective dates of scheduled increases; emergency. (Passed by Indefinitely in House Labor and Commerce Subcommittee 5-Y 3-N)

• Postpones the effective date of scheduled increases to the Virginia minimum wage. The initial increase to $9.50, currently set to take effect on May 1, 2021, will take effect on January 1, 2022, under the bill. The bill postpones the effective dates of all other scheduled increases by one year. The bill also postpones by one year (i) a joint review of the feasibility and potential impact of instituting a regional minimum wage in the Commonwealth by the Virginia Department of Housing and Community Development, the Virginia Economic Development Partnership Authority, and the Virginia Employment Commission and (ii) the deadline by which the General Assembly is required to reenact the provisions increasing the minimum wage to $13.50 and $15.00 in order for those increases to take effect. The bill contains an emergency clause.

Unemployment Compensation—Still Active

HB 2040 - Hudson - Unemployment compensation; failure to respond, continuation of benefits, repayment of overpayments. (Reported from Senate Commerce and Labor Committee with Substitute and referred to Senate Finance Committee 12-Y 2-N)

• Provides that an employer shall be deemed to have established a pattern of failing to respond timely or adequately to written requests for information relating to claims if the Virginia Employment Commission determines that the employer has failed to respond timely or adequately to a written request for information relating to a claim on two or more occasions within a 48-month window and requires such employer to pay a penalty upon his second such failure to respond timely or adequately.
• Under current law, such pattern is established after four failures, and the penalty is assessed after the third failure. The bill provides that if an employer fails to respond timely or adequately to a written request by the Commission for information relating to a claim, the employer forfeits any appeal rights to that claim.
• The bill provides that when a claimant has begun receiving unemployment benefits, such benefits shall continue to be paid under a presumption of continuing entitlement unless or until a deputy determines, in a process providing notice and opportunity to be heard to the claimant, that the claimant is ineligible or disqualified.
• The bill provides that an individual who receives an overpayment of unemployment benefits is not liable to repay the overpayments to the Commission if the Commission determines that (i) the overpayment was not due to fraud, misrepresentation, or willful nondisclosure on the part of the recipient and its recovery would be against equity and good conscience; (ii) the overpayment was a direct result of inducement, solicitation, or coercion on the part of the employer; or (iii) the overpayment occurred due to administrative error. The bill requires the Commission to waive an overpayment of benefits under a federal unemployment benefit program if the program authorizes the waiver. The bill provides that any person who receives an overpayment of benefits is not required to repay such overpayment if the Commission determines that the overpayment was made because the employer failed to respond timely or adequately to a written request by the Commission for information relating to the claim. Finally, the bill prohibits a determination with respect to benefit overpayments to be issued until after a determination or decision that finds a claimant ineligible or disqualified for benefits previously paid has become final.

Defeated:

HB 2037 - Tran - Unemployment compensation; benefits, suitable work, benefits charges. (Passed by Indefinitely (defeated) in Senate Commerce and Labor Committee 9-Y 6-N)

• Provides that, under specific conditions related to the COVID-19 virus, work will not be deemed suitable and benefits will not be denied to any otherwise eligible individual for refusing to accept new work if (i) the individual presents satisfactory evidence that such individual (a) has tested positive for COVID-19, (b) has been otherwise directed by a physician to quarantine due to COVID-19, or (c) is providing care for an immediate family member who has tested positive for COVID-19; or (ii) the individual has a reasonable belief, based on satisfactory evidence, that the workplace is unsafe because it does not meet governmental-mandated COVID-19 health and safety standards for the workplace, including standards issued by the U.S. Occupational Safety and Health Administration, the Department of Labor and Industry, or the Department of Health, or through an executive order or directive issued by the Governor.
• The bill provides, that for individuals who refuse to accept an offer of work based on such conditions, no benefits charges will be deemed to be the responsibility of the previous employer, unless the individual has refused an offer to return to work to his previous employer because the individual has a reasonable belief that the workplace is not in compliance with the Department of Labor and Industry's standards for the prevention of COVID-19.
• The provisions of the bill expire 30 days after the expiration or revocation of all states of emergency declared by the Governor related to the COVID-19 pandemic.

Right to Work—Defeated  

HB 1755 - Carter - Right to work; repeals provisions of Code that refers to denial or abridgement. (Left in House Labor and Commerce Committee (Defeated))

• Repeals the provisions of the Code of Virginia that, among other things, prohibit any agreement or combination between an employer and a labor union or labor organization whereby (i) nonmembers of the union or organization are denied the right to work for the employer, (ii) membership in the union or organization is made a condition of employment or continuation of employment by such employer, or (iii) the union or organization acquires an employment monopoly in any such enterprise.

Public Health Emergency

Public Health Emergency legislation that is still active: 

HB 2134 - Batten - Employee classification; provision of personal protective equipment in response to a disaster. (Passed the House 99-Y 0-N)

• Prohibits the consideration, in any determination regarding whether an individual is an employee or independent contractor, for the purposes of a civil action for employment misclassification, unemployment compensation, and workers' compensation, of the provision of personal protective equipment by a hiring party to the individual in response to a disaster caused by a communicable disease of public health threat for which a state of emergency has been declared.

SB 1362 - Lewis - Employers; reporting outbreaks of COVID-19. (Passed the Senate 27-Y 11-N)

• Requires that, upon determination that a worksite cluster of COVID-19 has occurred at a workplace with 50 or more employees, the Department of Health (the Department) shall make a report available to the public on a website maintained by the Department that includes (i) the name of the employer at which a worksite cluster has been reported and (ii) the number of confirmed cases of COVID-19 reported by such employer. The Department shall also report when previously reported outbreaks are under control. The bill defines "worksite cluster" as five or more cases with illness onset or initial positive results within a 14-day period and a likely epidemiologic linkage between cases. The bill provides that the provisions of the act shall expire upon expiration of the Governor's declared state of emergency in response to the continued spread of the SARS-CoV-2 novel coronavirus, or COVID-19. The provisions of the bill are contingent on funding in a general appropriation act.

Public Health Emergency legislation that has been defeated 

HB 2066 - Webert - Public health emergency; reports of suspected violations of orders and regulations, penalty. (Tabled in House Health, Welfare and Institutions Committee 12-Y 9-N)

• Provides that any system created by the Department of Health to receive information regarding an alleged violation of an order or regulation of the Board of Health or the Commissioner of Health enacted in response to a public health emergency related to a communicable disease of public health threat shall require, for each report received, the name, address, telephone number, and email address of the individual making the report. The bill makes knowingly making a false report of such violation a Class 1 misdemeanor. The bill contains an emergency clause.

Civil Liability Immunity – COVID-19 Claims – Defeated 

HB 2143 - Miyares - COVID-19 virus; immunity from civil claims related to the transmission of or exposure to the virus. (Left in House Courts of Justice Committee

• Provides immunity to persons, as defined in the bill, from civil causes of action arising from any act or omission alleged to have resulted in the contraction of or exposure to the COVID-19 virus, provided such person has complied with applicable federal, state, and local policies, procedures, and guidance regarding COVID-19. The bill further provides immunity to persons who design, manufacture, label, or distribute any personal protective equipment in response to the COVID-19 virus from any civil cause of action arising out of the use of such equipment. The bill contains an emergency clause, and the immunities provided by such bill expire two years after the expiration or revocation of all states of emergency declared by the Governor related to the COVID-19 pandemic.

Larceny—Still Active 

HB 2290 - Plum - Larceny; repeals punishment for conviction of second or subsequent misdemeanor. (Passed the Senate 21-Y 18-N)

• Repeals the enhanced penalties for a second or subsequent misdemeanor larceny conviction. Under current law, when a person is convicted of a second larceny offense, he shall be confined in jail not less than 30 days nor more than 12 months, and for a third, or any subsequent offense, he shall be guilty of a Class 6 felony.

Worker Classification – Defeated

HB 2296 - Robinson - Worker classification; independent contractors.(Left in Commerce and Labor Committee)

• Provides that in a proceeding involving allegations of worker misclassification an individual or business is not considered an employee with respect to a hiring party if the person qualifies as an independent contractor relative to the hiring party under the common law right-of-control test as established by the Internal Revenue Service Revenue Ruling 87-41, by an applicable determination of the Internal Revenue Service, or if (i) the individual or business signs a written contract with the hiring party stating that the individual or business is self-employed or is being engaged as an independent contractor and containing certain acknowledgments, (ii) the individual or business has the right to control the manner and means by which the final result of the work is to be accomplished, and (iii) four or more additional criteria provided for in the bill are satisfied. The bill also provides that a hiring party alleging that a worker misclassification claim is frivolous or improper may file a motion to dismiss such claim. The bill provides that a contract or written agreement expressly stating that a claimant is not considered an employee is considered as prima facie evidence of a violation of frivolous pleading provisions.

SB 1323 - Dunnavant - Worker classification; independent contractors. (Passed by Indefinitely in Senate Judiciary Committee (10-Y 5-N)

• Provides that in a proceeding involving allegations of worker misclassification an individual or business is not considered an employee with respect to a hiring party if the person qualifies as an independent contractor relative to the hiring party under the common law right-of control test as established by the Internal Revenue Service Revenue Ruling 87-41, by an applicable determination of the Internal Revenue Service, or if (i) the individual or business signs a written contract with the hiring party stating that the individual or business is self-employed or is being engaged as an independent contractor and containing certain acknowledgments, (ii) the individual or business has the right to control the manner and means by which the final result of the work is to be accomplished, and (iii) four or more additional criteria provided for in the bill are satisfied. The bill also provides that a hiring party alleging that a worker misclassification claim is frivolous or improper may file a motion to dismiss such claim. The bill provides that a contract or written agreement expressly stating that a claimant is not considered an employee is considered as prima facie evidence of a violation of frivolous pleading provisions.

Privacy – Still Active

HB 2307 - Hayes - Consumer Data Protection Act; establishes a framework for controlling and processing personal data. (Passed the House 89-Y 9-N)

• Establishes a framework for controlling and processing personal data in the Commonwealth. The bill applies to all persons that conduct business in the Commonwealth and either (i) control or process personal data of at least 100,000 consumers or (ii) derive over 50 percent of gross revenue from the sale of personal data and control or process personal data of at least 25,000 consumers. The bill outlines responsibilities and privacy protection standards for data controllers and processors. The bill does not apply to state or local governmental entities and contains exceptions for certain types of data and information governed by federal law. The bill grants consumer rights to access, correct, delete, and obtain a copy of personal data and to opt out of the processing of personal data for the purposes of targeted advertising. The bill provides that the Attorney General has exclusive authority to enforce violations of the law, and the Consumer Privacy Fund is created to support this effort. The bill has a delayed effective date of January 1, 2023.

SB 1392 - Marsden - Consumer Data Protection Act. (Passed the Senate 36-Y 0-N 1-A)

• Establishes a framework for controlling and processing personal data in the Commonwealth. The bill applies to all persons that conduct business in the Commonwealth and either (i) control or process personal data of at least 100,000 consumers or (ii) derive over 50 percent of gross revenue from the sale of personal data and control or process personal data of at least 25,000 consumers. The bill outlines responsibilities and privacy protection standards for data controllers and processors. The bill does not apply to state or local governmental entities and contains exceptions for certain types of data and information governed by federal law. The bill grants consumer rights to access, correct, delete, obtain a copy of personal data, and to opt out of the processing of personal data for the purposes of targeted advertising. The bill provides that the Attorney General has exclusive authority to enforce violations of the law, and the Consumer Privacy Fund is created to support this effort. The bill has a delayed effective date of January 1, 2023.

Tax Conformity – Still Active

The House and the Senate each have their own version of Tax Conformity bills this year. The main issue at hand is the cap amount for deductions of business expenses for the PPP Loans. Both bills allow for a business that received a PPP loan to exclude the forgiven loan amount from their income, however each instils a cap for maximum deduction to cover one’s business expenses related to their PPP Loans. The Senate version creates a $100,000 cap, while the House version only allows one to deduct up to $25,000 for business expenses related to their PPP loan. We are very grateful that the Senate increased the cap to $100,000 and will continue to work on this issue with regard to the House version of the legislation.

HB 1935 - Watts - Income tax, state; conformity with the Internal Revenue Code. (Passed the House 55-Y 43-N)

• Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2019, to December 31, 2020. The bill adds exceptions to such conformity for suspension of the overall limitation on itemized deductions and the reduction in the medical expense deduction floor for taxable year 2017 and taxable years on and after January 1, 2019, and for the provisions of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, and the limitation on business interest. The bill also includes an individual income tax deduction in taxable year 2020 for business expenses funded with forgiven Paycheck Protection Program loans up to $25,000 and an individual income tax subtraction in taxable year 2020 for up to $25,000 in Rebuild Virginia grants.

SB 1146 - Howell - Income tax, state; conformity with the Internal Revenue Code (Passed the Senate 39-Y 0-N)

• Advances Virginia’s date of conformity with the Internal Revenue Code from December 31, 2019, to December 31, 2020. The bill adds exceptions to such conformity for suspension of the overall limitation on itemized deductions and the reduction in the medical expense deduction floor for taxable year 2017 and taxable years on and after January 1, 2019, and for the provisions of the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, and the limitation on business interest. The bill contains an emergency clause.

Hazard Pay - Defeated

Delegate Ayala introduced legislation that required employers of “essential workers” to pay hazard pay after an executive order is issued which includes a stay-at-home or shelter-in-place order. This means that employers must compensate essential workers at a rate of at least one and one-half times that workers regular rate of pay for any hours worked during the closure order. In addition, PPE must be provided for essential workers as well. Under this legislation, an essential worker is an individual employed as a health care provider, home care provider, airport worker, or employed by an essential retail business. This legislation was defeated in House Appropriations Committee because of the large fiscal impact that it would have on the State Budget.

HB 2015 - Ayala - Essential workers; hazard pay; personal protective equipment; civil penalty. (Passed by Indefinitely in House Appropriations Committee 21-Y 0-N)

• Requires, that following the declaration by the Governor of a state of emergency that includes or is followed by any additional executive order in furtherance of such declaration that includes a stay-at-home or shelter-in-place order, employers shall (i) compensate each of their essential workers at a rate not less than one and one-half times the essential worker's regular rate of pay for any hours worked during the closure order and (ii) provide their essential workers with personal protective equipment related to the state of emergency and recommended for the relevant work site or job task by the Virginia Department of Labor and Industry, the State Department of Health, the U.S. Centers for Disease Control and Prevention, or the federal Occupational Safety and Health Administration. The bill defines "essential worker" as an individual employed as a health care provider, home care provider, or airport worker or by an essential retail business, as specified in the bill. The bill subjects violators to the same civil penalties, and provides the same cause of action for an employer's failure to pay the required hazard pay, as are currently imposed for failing to pay wages generally.

Paid Covid Sick Leave & More

Multiple bills were introduced that mandate businesses to provide one form of paid leave or another. There were bills that create a payroll tax/insurance program that would provide a certain amount of leave for employees if they met specific criteria; and there are bills that require flat number of days per year of leave for each employee. Only two bills on this subject remain after crossover. The first is Delegate Guzman’s bill for Paid Sick Leave for Essential Workers. This legislation would apply to all essential retail workers, as defined in the bill, of employers with 25 or more employees. The second is Senator Favola’s legislation that directs the State Corporation Commission’s Bureau of Insurance to conduct a report on allowing the sale of individual and group Paid Family Leave plans in Virginia.

Active Paid Leave Legislation: 

HB 2137 - Guzman - Paid sick leave; employers to provide to certain employees (Passed the House 54-Y 46-N)

• Requires employers to provide certain employees paid sick leave. An employee is eligible for paid sick leave under the bill if the employee is an essential worker and works on average at least 20 hours per week or 90 hours per month. The bill provides for an employee to earn at least one hour of paid sick leave benefit for every 30 hours worked. An employee shall not use more than 40 hours of earned paid sick leave in a year, unless the employer selects a higher limit. The bill provides that earned paid sick leave may be used for (i) an employee's mental or physical illness, injury, or health condition; an employee's need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or an employee's need for preventive medical care or (ii) care of a family member with a mental or physical illness, injury, or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or care of a family member who needs preventive medical care. The bill prohibits employers from taking certain retaliatory actions against employees related to leave. The bill provides for a hardship waiver for employers that demonstrate that providing paid sick leave threatens the financial viability of the employer, jeopardizes the ability of the employer to sustain operations, significantly degrades the quality of the employer's business operations, or creates a significant negative financial impact on the employer. The bill requires the Commissioner of Labor and Industry to promulgate regulations that (a) identify workers as essential based on the categories listed in the bill; (b) include reasonable requirements for recordkeeping, confidentiality, and notifying employees of their rights under provisions of the bill; (c) establish complaint, investigation, and enforcement procedures that include fines, not to exceed $500, for violations of provisions of the bill; (d) establish requirements for compensation and accrual of paid sick leave for employees employed and compensated on a fee-for-service basis; and (e) include procedures and requirements for an employer to qualify for a hardship waiver. The provisions of the bill do not apply to a retail business with fewer than 25 employees

SB 1219 - Favola - Bureau of Insurance; paid family leave; report.

• Directs the State Corporation Commission's Bureau of Insurance (the Bureau) to review and make recommendations, including any necessary statutory and regulatory changes, to authorize the State Corporation Commission to approve the sale of individual and group paid family leave plans in Virginia. The bill requires the Bureau to also identify options and make recommendations for encouraging or incentivizing employers to voluntarily offer up to 12 weeks of paid family leave. The bill requires the Bureau to convene a stakeholder group to participate in the process, which is required to include representatives from the insurance industry and the business community, advocates for paid family leave, and other interested parties. The bill requires the Bureau to report its findings and recommendations to the Senate Committees on Commerce and Labor and Finance and Appropriations and the House Committees on Labor and Commerce and Appropriations by November 30, 2021

Defeated Paid Leave Legislation: 

HB 2016 - Ayala - Paid family and medical leave program (Laid on the Table (defeated) in House Appropriations Subcommittee 8-Y 0-N)

• Requires the Virginia Employment Commission to establish and administer a paid family and medical leave program with benefits beginning January 1, 2024. Under the program, benefits are paid to eligible employees for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning in 2023. 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 measure caps the duration of paid leave at 12 weeks in any application year. The bill provides self-employed individuals the option of participating in the program.

HB 2103 - Reid - Certain public & private employers to provide earned paid sick time. (Laid on the table (defeated) in House Appropriations Subcommittee 8-Y 0-N)

• Requires public and private employers with 35 or more full-time equivalent employees to provide eligible employees, defined in the bill, with earned paid sick time and paid sick time. The bill provides for an eligible employee to earn up to 40 hours of earned paid sick time depending on the amount of hours the eligible employee has averaged over the previous year or, for a new employee, is projected to work. An eligible employee shall not earn or use more than 40 hours of earned paid sick time in a year, unless the employer selects a higher limit. The bill provides that earned paid sick time may be used (i) for an eligible employee's mental or physical illness, injury, or health condition; an eligible employee's need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or an eligible employee's need for preventive medical care; or (ii) to provide care to an eligible employee's family member, defined in the bill, under similar circumstances.

• The bill prohibits employers from taking certain retaliatory actions against employees related to earned paid sick leave and authorizes the Commissioner of Labor and Industry, 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, if the second or successive violation occurs within two years of the previous violation. The Commissioner of Labor and Industry may institute proceedings on behalf of an employee to enforce compliance with this bill and to collect specified amounts from the employer, which shall be awarded to the employee. Alternatively, an aggrieved employee is authorized to bring a civil action against the employer in which he may recover double the amount of any unpaid earned sick time and the amount of any actual damages suffered as the result of the employer's violation. However, an aggrieved employee is required to seek redress through the employer's human resources department prior to filing an administrative complaint or civil action. The bill has a delayed effective date of January 1, 2023.

SB 1159 - Favola - Use sick leave for the care of immediate family members. (Stricken at the request of the Patron)

• Requires employers with a sick leave program to allow an employee to use his sick leave for the care of an immediate family member. The measure applies only to employers that have 25 or more employees and that provide paid sick leave that allows an employee to be absent from work in the event of the employee's own incapacity, illness, or injury. The measure applies only to employees who work at least 30 hours per week, and it caps the amount of sick leave that may be used for the care of immediate family members at five days per calendar year.

SB 1330 - Boysko - Paid family and medical leave program. (Passed by Indefinitely in Senate Commerce and Labor Committee 12-Y 3-N)

• Requires the Virginia Employment Commission to establish and administer a paid family and medical leave program with benefits beginning January 1, 2024. Under the program, benefits are paid to eligible employees for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning in 2023. 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 measure caps the duration of paid leave at 12 weeks in any application year. The bill provides self-employed individuals the option of participating in the program.

Tax

SB 1398 - Norment - Retail sales and transient occupancy taxes on room rentals. (House Finance Subcommittee #2 recommends reporting with amendments 8-Y 2-N)

• Provides that retail sales and hotel taxes on transient room rentals shall be computed on the basis of the total charges or the total price paid for the use or possession of the room.
• For those cases in which a hotel or similar establishment contracts with an intermediary to facilitate the sale of the room and the intermediary charges the customer for the room and such facilitation efforts, the bill requires the intermediary to separately state the taxes on the bill or invoice provided to the customer and to collect the taxes based upon the total charges or the total price paid for the use or possession of the room.
• The bill provides that an estimated amount equivalent to the sales tax revenue attributable to the charge for the service provided by the intermediary shall be dedicated to the Virginia Tourism Authority to administer grants for tourism promotion.

SB 1403 - Pillion - Sales tax; exemption for personal protective equipment; emergency. (Passed the House 100-Y 0-N)

• Establishes a retail sales and use tax exemption for personal protective equipment, as defined in the bill.
• The exemption would be available to any business that has in place a COVID-19 safety protocol that complies with the Emergency Temporary Standard promulgated by the Virginia Department of Labor and Industry and that meets other criteria.
• The exemption would sunset one day after the first day following the expiration of the last executive order issued by the Governor related to the COVID-19 pandemic and the termination of the COVID-19 Emergency Temporary Standard and any permanent COVID-19 regulations adopted by the Virginia Safety and Health Codes Board.
• The bill contains an emergency clause.

Paid Leave

As you saw in our report last week, several paid leave bills have been introduced this session in both the House and the Senate. Senate Commerce and Labor Committee heard all of the bills on the issue, other than SB 1159 which went by for the day. The only bill that passed so far was Senator Favola’s study on the sale of individual and group paid leave plans in Virginia. Senator Boysko’s legislation, which would have established a Paid Family and Medical Leave Insurance program was defeated.

• SB 1159 - Favola - Use sick leave for the care of immediate family members. 

Requires employers with a sick leave program to allow an employee to use his or her sick leave for the care of an immediate family member. The measure applies only to employers that have 25 or more employees and that provide paid sick leave that allows an employee to be absent from work in the event of the employee's own incapacity, illness, or injury. The measure applies only to employees who work at least 30 hours per week, and it caps the amount of sick leave that may be used for the care of immediate family members at five days per calendar year.

• SB 1219 - Favola - Bureau of Insurance; paid family leave; report. Passed the Senate, will now be heard in the House.

Directs the State Corporation Commission's Bureau of Insurance (the Bureau) to review and make recommendations, including any necessary statutory and regulatory changes, to authorize the State Corporation Commission to approve the sale of individual and group paid family leave plans in Virginia.The bill requires the Bureau to also identify options and make recommendations for encouraging or incentivizing employers to voluntarily offer 12 weeks of paid family leave. The bill requires the Bureau to convene a stakeholder group to participate in the process, which is required to include representatives from the insurance industry and the business community, advocates for paid family leave, and other interested parties.The bill requires the Bureau to report its findings and recommendations to the Senate Committees on Commerce and Labor and Finance and Appropriations and the House Committees on Labor and Commerce and Appropriations by November 30, 2021.

• SB 1330 - Boysko - Paid family and medical leave program. Passed by Indefinitely (defeated)

Requires the Virginia Employment Commission to establish and administer a paid family and medical leave program with benefits beginning January 1, 2024. Under the program, benefits are paid to eligible employees for family and medical leave.Funding for the program is provided through premiums assessed to employers and employees beginning in 2023. 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 measure caps the duration of paid leave at 12 weeks in any application year. The bill provides self-employed individuals the option of participating in the program.

Equal Pay Bill

Senator Boysko’s Equal Pay bill was defeated in Senate Commerce and Labor by a pretty substantial margin. This legislation was extremely broad in the way it was enforced and what it applied to, and would have created a huge mandate on businesses across Virginia. You can find a full summary of the legislation below.

• SB 1228 - Boysko - Virginia Equal Pay Act; civil penalties. Passed by indefinitely (defeated) in Senate Commerce and Labor Committee.

Prohibits public and private employers from discriminating between employees on the basis of membership in a protected class in the payment of wages or other compensation, including benefits, by paying wages or other compensation to employees who are members of a protected class at a rate less than the rate at which it pays wages or other compensation to employees who are not members of the protected class for substantially similar work.The measure also prohibits an employer from discriminating between employees by providing less favorable employment opportunities on the basis of membership in a protected class, limiting an employee's right to discuss wages, relying on the wage history of a prospective employee in considering the prospective employee for employment or determining the wages that the prospective employee is to be paid by the employer upon hire, or taking certain retaliatory actions against an employee.The measure also establishes criteria for when wage differentials between employees are permitted, but requires an employer to (i) provide a prospective employee with the wage range for the position for which the prospective employee is applying upon request or prior to inquiring about the prospective employee's wage expectations or providing an offer of compensation and (ii) maintain records of the wages and wage rates, job classifications, and other terms and conditions of employment for a period of three years.The measure gives an employee who is the subject of a violation a right of action to recover, for certain violations, the greater of compensatory damages or $10,000, liquidated damages, punitive damages, and attorney fees. Violations are also subject to civil penalties.

Mandatory Retirement Program

Delegate Torian’s legislation to create a State run retirement program has passed House Appropriations Committee and will now be heard on the House floor. This legislation requires all employers, with five or more employees, and who do not offer an eligible retirement program, to participate.The bill was amended in full committee to make it clear that participating employers will not be required to contribute. Employees of participating employers, will be automatically enrolled in the program unless they opt out. If this bill passes, enrollment in the program will begin no later than July 1, 2023. You can find a full summary of the legislation below.

• HB 2174 - Torian – Virginia Saves Program; established. (On House Floor)

Directs the governing board of the Virginia College Savings Plan (the Board) to establish an automatic enrollment payroll deduction individual retirement account (IRA) retirement savings program, to be known as the VirginiaSaves Program (the Program). The Board shall administer the Program and develop requirements, procedures, and guidelines for the Program, including default contribution rates, procedures for enrollment and withdrawal, and procedures for noncompliance. Moneys in the Program shall be invested in a manner deemed appropriate by the Board.

Participation in the Program is mandatory for eligible employers, defined in the bill as self-employed individuals, sole proprietors, and nongovernmental employers having five or more employees that do not offer a qualified retirement plan to their employees. Each eligible employee, defined generally as an individual employed by an eligible employer, shall be enrolled in the Program unless the employee elects not to participate in the Program.

The bill contains provisions limiting the liability of the Board, the Plan, and the Commonwealth or any of its political subdivisions, for obligations associated with the Program. The Commonwealth shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the Program.Participating employers shall not (i) have any liability for an employee's decision to participate in or opt out of the Plan, (ii) be a fiduciary over the Program, or (iii) have any liability or responsibility related to the operation of the Program.

The Program shall be established, and enrollment shall begin, no later than July 1, 2023.

Retaliatory Discharge

Delegate Carter’s legislation regarding the discharge or retaliatory actions against employees who have filed or intend to file a Workers Compensation claim is now on the House Floor. The concern with this legislation is that it could cause an issue for employers who are disciplining an employee for poor performance, but just happen to have filed a Worker’s Compensation Claim. You can find a full summary of the legislation below.

• HB 1754 - Carter - Employer or other person; retaliatory discharge of employee prohibited (Passed House Labor and Commerce Committee, and is now on the House Floor)

Prohibits an employer or other person from discharging or taking other retaliatory action against an employee if such action is motivated by the knowledge or belief that the employee has filed a claim or taken or intends to take certain actions under the Virginia Workers' Compensation Act. Currently, retaliatory discharges are prohibited only if the employer discharges an employee solely because the employee has taken or intends to take such an action.

President Biden's American Rescue Plan

From our partners at National Retail Federation: 

Last week, now President Biden unveiled a $1.9 trillion economic relief package. The top-line points are that the plan will deliver critical economic relief by (1) establishing and funding a national vaccination program, (2) delivering immediate relief to working families through $1,400 stimulus checks in addition to the $600 already enacted in December, and (3) supporting struggling communities that have been hard hit by COVID-19.

NRF PPP Webinar

Last week National Retail Federation held a webinar to discuss some of the changes associated with the new COVID-19 relief bill as it pertains to retailers. 

• View the full webinar here.
• View the slide deck here. 

Virtual Small Business Day   I   January 21, 2021   I   7:30-9:30am 

Join VRF at Virginia’s Small Business Day with NFIB, where many of the state’s leading business organizations will gather virtually to help educate policymakers on the issues most important to their business. Now is the time to tell legislators how the pandemic has impacted your business and what they should be doing to help Virginia’s economic recovery. Don’t miss your opportunity to be part of this important conversation in 2021.

Topics to be discussed include Paid Sick Leave, Tax Reform, Unemployment Insurance, and Right to Work. 

Featured Speakers:

• Sen. Stephen Newman (R), District 23
• Sen. Chap Petersen (D), District 34
• Del. Kathy Byron (R), District 22
• Del. Alfonso Lopez (D), District 49
  
  

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New Mitigation Measures to Slow COVID-19 Spread

Virginians should stay at home from 12 a.m. to 5 a.m., wear masks in indoor and outdoor settings, limit social gatherings to 10. 

About Virginia Retail Federation

VRF is stronger with your voice as a part of it. Join today to participate in the legislative process through a baseline, free membership level geared at activating your voice in policy decisions. At no cost, you will get access to decoded bill information, our engagement platform that connects you directly with your representatives, and legislative updates that keep you informed throughout the General Assembly and beyond. 

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Clarification & FAQs on the New Virginia Statewide Measures to Contain COVID-19 

Friday, November 20, 2020

This week, new measures went into effect designed to mitigate the spread of COVID-19. In addition to these measures, it is important for retailers to note that there will be increased and strengthened enforcement with regard to essential retail businesses. Violations will now be enforceable through the Virginia Department of Health as a Class One Misdemeanor, regardless of whether or not your business is typically inspected by the Virginia Department of Health. 

Please see below to view all of the new measures as well as Frequently Asked Questions for additional clarification. 

New Statewide Measures to Contain COVID-19 Take Effect Sunday

Friday, November 13, 2020

UPDATE November 20, 2020: Clarification & FAQ on New Regulations

Governor Northam announced today new measures being taken to mitigate the spread of COVID-19 in Virginia. Beginning Sunday, November 15 at midnight, the following will take effect:

• View the full press release here. 
• The amended versions of Executive Orders 63 and 67, as well as Order of Public Health Emergency Five, will be made available here. 

Special Session 2020: Tracked Bills

As you are aware, the 2020 Special Session began Tuesday, August 18^th, and so far, we have seen several pieces of legislation introduced that will have an impact on our members if passed. A full list of the bills is below. 

Read More 

REPORT: Special Session 2020

August 25, 2020

As you are aware, the 2020 Special Session began Tuesday, August 18^th, and so far, we have seen several pieces of legislation introduced that will have an impact on our members if passed. We summarized a few of the major bills below. To view a full list of bills we are tracking, please click here.

How this impacts you:

You will see four major issues below: Paid Leave, Workplace Safety, Unemployment Compensation, and Civil Liability Immunity. The legislation that has been introduced in the first three categories creates additional burdens and mandates on business, which has an even greater negative impact during such a trying economic crisis. The last category of Civil Liability Immunity could be very helpful to our members if it were to pass. We consider this legislation business-friendly legislation.

Read More 

WEBINAR: New Labor Laws (Part 1 & 2)

These webinars will be a review of new laws and amended laws will include new anti-discrimination state law, wage and hour laws, and non-compete agreements particularly for “low-wage employees.”

PART ONE |  View Archived Video

PART TWO |  View Archived Video*
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PRESENTERS

David E. Nagle
Jackson Lewis | Principal, Richmond
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Crystal Tyler
Jackson Lewis | Of Counsel, Richmond
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Read New Laws

Upcoming 2020 Special Session

August 17, 2020

As many of you are aware, the General Assembly will begin a Special Session on Tuesday, August 18th to address Criminal Justice Reform and COVID-19 relief. Much of the legislation that will be considered during this session has not hit the system as of the time of dissemination of this email. We have received the priority list for the House Democratic Party which you can find HERE.  

 
PAID LEAVE
 
Of note is the priority that all employers provide paid leave for employees. While we are still waiting to see details of the Paid Leave legislation, in general Virginia Retail Federation opposes a paid leave mandate on businesses. Here’s why:

• Many of our members offer some form of leave for their employees and work with their employees to care for their health, especially in a situation such as the COVID-19 pandemic.
• Currently, many members already have to comply with the Paid Leave portion of the Family First Coronavirus Response Act at the federal level, so we are concerned with how the proposed state legislation will overlap with that.
• Retail businesses need flexibility when it comes to the benefits they offer their employees, and mandates such as this tend to eliminate that flexibility. It cannot be a one size fits all approach especially in the economic situation retailers are facing today due to the Pandemic. 

COVID-19 CIVIL CLAIMS
 
On the other hand, we are anxiously awaiting to see the proposed legislation that would provide immunity from civil claims related to COVID-19 when businesses have complied with health guidance. This could be a welcome relief to retailers and businesses in general who are following all the guidelines in good faith.
 

STAY ENGAGED
 
This Special Session will be very different from those in the past, with the majority of the meetings taking place virtually over several weeks. It will be more important than ever for our members to engage in action alerts sent on specific issues as they are sent out. Please keep an eye out for action alerts and make sure to engage on those specific issues!
 
We will send out a more detailed report on all legislation that impacts the Retail Industry once all legislation is in the system. Should you have any questions, please reach out.

Virginia Institutes New Regional Sales and Use Tax in Central Virginia

August 14, 2020

Effective Oct. 1, 2020, a new .7% regional retail sales and use tax will be imposed in Central Virginia to include city of Richmond, as well as Charles City, Chesterfield, Goochland, Hanover (including the town of Ashland), Henrico, New Kent, and Powhatan. This will bring the total sales tax to 6% - inclusive of the 4.3% sales tax, the new .7% regional state tax, and the 1% local option tax. This additional sales tax will be allocated to the Central Virginia Transportation Authority, and puts Central Virginia in line with Northern Virginia and Hampton Roads with regard to Sales Tax rate. This does not apply to food purchased for home consumption and qualifying essential personal hygiene products which will remain at the current 2.5% rate statewide. 

• View the full tax bulletin HERE.

    

Virginia Launches COVIDWISE Exposure Notification App to Help Contain COVID-19

August 7, 2020

Governor Ralph Northam announced this week the launch of COVIDWISE, an innovative exposure notification app that will alert users if they have been in close contact with an individual who has tested positive for COVID-19.

Virginia is the first state in the country to design a COVID-19 app using Bluetooth Low Energy technology developed by Apple and Google, which does not rely on personal information or location data. Users opt-in to download and utilize the free app.
  

COVIDWISE works by using random Bluetooth keys that change every 10 to 20 minutes. iOS and Android devices that have the app installed will anonymously share these random keys if they are within close proximity for at least 15 minutes.

Each day, the device downloads a list of all random keys associated with positive COVID-19 results submitted by other app users and checks them against the list of random keys it has encountered in the last 14 days. If there is a match, COVIDWISE may notify the individual, taking into account the date and duration of exposure, and the Bluetooth signal strength which is used to estimate proximity. 

• To learn more about COVIDWISE and the download the app, click HERE.
• To watch an informational briefing with the app developers click HERE.
• Read a one-page information sheet on COVIDWISE HERE. 

Virginia Sales Tax Holiday

July 29, 2020

August 7-9, 2020

Virginia's annual tax-exempt weekend will occur this weekend, August 7-9, 2020. During the sales tax holiday, consumers will be able to purchase qualifying school supplies, clothing, footwear, hurricane and emergency preparedness items, and EnergyStar^TM and WaterSense^TM products without paying a tax. 

Businesses will need to make sure that their POS systems are set up in order to implement the temporary change for qualifying products.  

• Learn more HERE. 

ON-DEMAND WEBINAR: Virginia’s COVID-19 Emergency Regulations

July 29, 2020

Join Courtney Malveaux of Jackson Lewis this Wednesday, July 29 at 3pm for an in-depth webinar discussing the impact of the new regulations on your business.  

Watch here
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Virginia’s Department of Labor and Industry has announced that the Virginia Occupational Safety and Health (VOSH) program has officially published the new regulations today in the Richmond Times-Dispatch, making the Virginia Safety and Health Code Board's Emergency Temporary Standards effective immediately. 

Download the full regulations here. 

NOW IN EFFECT: Virginia's Emergency Temporary OSHA Standards

July 27, 2020

Virginia’s Department of Labor and Industry has announced that the Virginia Occupational Safety and Health (VOSH) program has officially published the new regulations today in the Richmond Times-Dispatch, making the Virginia Safety and Health Code Board's Emergency Temporary Standards effective immediately. 

Download the full regulations here. 

Join Courtney Malveaux of Jackson Lewis this Wednesday, July 29 at 3pm for an in-depth webinar discussing the impact of the new regulations on your business.  

Watch here
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The Rebuild VA Grant Fund

July 27, 2020

The Rebuild VA Grant Fund is a program to help small businesses and non-profits whose normal operations were disrupted by COVID-19, including restaurants, brick and mortar retail, exercise and fitness facilities, personal care and personal grooming services, entertainment and public amusement establishments, and campgrounds.

Businesses and non-profits that are approved for a Rebuild VA grant may receive up to 3 times their average monthly eligible expenses up to a maximum of $10,000. 

THE APPLICATION WILL BE AVAILABLE ON AUGUST 10, 2020

Learn more here.

WEBINAR: Prepare for Virginia’s COVID-19 Emergency Regulations

Date: Wednesday, July 29 
Time: 3:00 pm 
Presenter: Courtney M. Malveaux, Jack Lewis

In a split vote, the Virginia Safety and Health Codes Board passed the first-in-the-nation standard to address COVID-19 in workplaces. 

Virginia Occupational Safety and Health (VOSH), the state’s version of the Occupational Safety and Health Administration (OSHA), will enforce a standard that mandates —  and, in some instances, exceeds — guidance issued by the U.S. Centers for Disease Control and Prevention (CDC) and OSHA. The new standard covers most private employers in Virginia, as well as all state and local employees. We will be joined by Courtney Malveaux of Jackson Lewis to learn how your business will be impacted and what you can do to prepare.  

About Our Presenter
Courtney M. Malveaux is a Principal in the Richmond, Virginia, office of Jackson Lewis. P.C. He co-leads the firm’s Workplace Safety and Health Practice Group. His practice focuses on representing employers cited by the Occupational Safety and Health Administration and other regulatory agencies, oftentimes following catastrophic incidents.

Get Registered

Virginia Passes First-In-Nation OSHA Standard for COVID-19

July 16, 2020

By Courtney M. Malveaux from JacksonLewis 

In a split vote, the Virginia Safety and Health Codes Board passed a first-in-the-nation standard to address COVID-19 in workplaces.  Virginia Occupational Safety and Health (VOSH), the state’s version of the Occupational Safety and Health Administration (OSHA), now will enforce a standard that mandates —  and in some instances exceeds — guidance issued by the U.S. Centers for Disease Control and Prevention (CDC) and OSHA.  The new standard covers most private employers in Virginia, as well as all state and local employees.

In addition to CDC and OSHA guidelines, the standard includes provisions that require employers to:

• Provide flexible sick-leave policies, telework and staggered shifts when feasible;
• Provide both handwashing stations and hand sanitizer when feasible;
• Assess risk levels of employers and suppliers before entry;
• Notify the Virginia Department of Health of positive COVID-19 tests;
• Notify VOSH of three or more positive COVID-19 tests within a two-week period;
• Assess hazard levels of all job tasks;
• Provide COVID-19 training of all employees within 30 days (except for low-hazard places of employment);
• Prepare infectious disease preparedness and response plans within 60 days;
• Post or present agency-prepared COVID-19 information to all employees; and
• Maintain air handling systems in accordance with manufacturers’ instructions and American National Standards Institute (ANSI) and American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards.

Continue reading on JacksonLewis, click here.

Virginia Issues Emergency Temporary OSHA Standards for COVID-19

July 20, 2020

Virginia’s Department of Labor Safety and Health Codes Board gave final approval last week to the Governor’s Workplace Safety emergency regulations pertaining to COVID-19.  

• Download the full regulations here. 

These regulations will go into effect upon publication in a Richmond newspaper which is anticipated to occur during the week of July 27, 2020. We will keep you updated on the specific date as it becomes available. 

Virginia Phase Three

Governor Northam announced that Virginia would enter Phase Three of his reopening plan on Wednesday, July 1, 2020. This means that:  

• Occupancy/capacity limits will be lifted on retail stores, restaurants, bars, and breweries, however, businesses must still maintain 6 ft social distancing. 
• Museums, zoos, and other outdoor entertainment venues will be allowed to open at 50% capacity, serving a maximum of 1,000 people.
• Gyms and fitness centers will be allowed to operate at up to 75% capacity.
• Face coverings will still be required in indoor public spaces.

July 1: Virginia to Enter Phase Three of Reopening

June 23, 2020

Governor Northam announced that Virginia would enter Phase Three of his reopening plan on Wednesday, July 1, 2020. This means that:  

• Occupancy/capacity limits will be lifted on retail stores, restaurants, bars, and breweries, however, businesses must still maintain 6 ft social distancing. 
• Museums, zoos and other outdoor entertainment venues will be allowed to open at 50% capacity, serving a maximum of 1,000 people.
• Gyms and fitness centers will be allowed to operate at up to 75% capacity.
• Face coverings will still be required in indoor public spaces.

New Law Relaxing PPP Rules: What You Need To Know

By Neil Hare

On May 27, 2020, the House passed the PPPFA by 417-1 and the Senate approved it by unanimous consent on June 3. The new law addresses the following flaws in the original PPP program created under the CARES Act:

Read More

New Laws Effective July 1

June 8, 2020

The 2020 Session wrapped up on Sunday, March 8^th with the General Assembly adopting the budget on Thursday, March 12^th. This Session was difficult for the Retail Industry with an exorbitant amount of bills that negatively impact businesses. Below you will find a list of issues that will go into law on July 1, 2020, with the exception of the minimum wage increase that has been postponed.

• Minimum Wage (delayed) 
• Felony Threshold for Larceny
• Shopping Carts
• Plastic Bag Tax
• Worker’s Compensation
• Employer Mandates/Private Cause of Action
• Environmental Issues
• Tax Issues
• Nonpayment of Wages/ Worker Misclassification
• Energy
• ABC
• See details on all new laws

Phase Two: Guidelines for All Business Sectors

June 2, 2020

Safer at Home: Phase Two

Guidelines for all business sectors, print resources, instructions, and more, click here.

Clarity Regarding Enforcement of Executive Order 63

May 28, 2020

Governor Northam Offers Clarity Regarding Enforcement of Executive Order 63

During the Governor’s press conference today, he addressed the many concerns swirling around enforcement of his face covering mandate in all public places scheduled to take effect beginning tomorrow, May 29^th.  

The Governor and his general counselor stated that businesses and their employees are not to be the enforcers or put themselves in a harmful position. The Governor encouraged businesses to clearly post his mandate at the entrance for customers and that they do mandate employees to wear masks.

The guidelines and signage for businesses to print and post at the entrance to their business will be added to the Forward Virginia website and will be available in both English and Spanish. 
  

• FAQ on Executive Oder 63
   
• VIDEO: Governor Northam's May 28th Press Conference HERE. 

UPDATE: EXECUTIVE ORDER 63

May 27, 2020

UPDATE: Virginia Retail Federation is working to obtain additional clarity from the administration regarding the enforcement of Executive Order 63. That information will be shared as soon as it becomes available. 

Governor Northam has issued Executive Order 63, mandating that face covers be worn by employees and customers while inside effective Friday, May 29, 2020. 

Executive Order 63 states that all patrons in the Commonwealth aged ten and over shall when entering, exiting, traveling through, and spending time inside the settings listed below cover their mouth and nose with a face covering, as described and recommended by the CDC: 

• Personal care and personal grooming businesses, including but not limited to, beauty salons, barbershops, spas, massage centers, tanning salons, tattoo shops, and any other location where personal care or personal grooming services are provided.
• All brick and mortar retail businesses, including both essential and non-essential brick and mortar retail businesses, as delineated in Amended Executive Order 61 and Amended Order of Public Health Emergency Three (2020).
• Food and beverage establishments, including but not limited to, restaurants, dining establishments, food courts, breweries, microbreweries, distilleries, wineries, tasting rooms, and farmers markets, when permitted to reopen for indoor dining.
• Entertainment or recreation businesses, including but not limited to, racetracks, historic horse racing facilities, theaters, performing arts centers, concert venues, museums, and other indoor entertainment centers, bowling alleys, skating rinks, arcades, amusement parks, trampoline parks, fairs, arts and craft facilities, aquariums, zoos, escape rooms, public and private social clubs, and all other places of indoor public amusement, once permitted to reopen to the public. Face coverings shall also be required when patrons are outdoors at these businesses if a distance of six feet from every other person cannot be maintained. 
• Any other indoor place shared by groups of people who are in close proximity to each other. 

Executive Order 63 also states that all employees of essential retail businesses permitted to open under Executive Order 61 or Executive Order 63 shall wear face coverings whenever working in customer facing areas. 
  

Phase One: City of Richmond

Richmond City Mayor Levar Stoney held a press conference this morning announcing that the City of Richmond would be entering Phase I of the Governor's reopening guidelines beginning this Friday, May 29, 2020.  

• View the full reopening guidelines for Virginia HERE
• Download a version of the guidelines for businesses HERE 
• View a reopening checklist and local resource guide HERE

Executive Order 63: Requirement to Wear Face Covering While Inside Buildings

"All patrons in the Commonwealth aged ten and over shall when entering, exiting, traveling through, and spending time inside the settings listed below cover their mouth and nose with a face-covering."

Read Executive Order 63

SURVEY: Virginia Mandatory Face Coverings

May 26, 2020

We’d like to hear from you on how the face coverings mandate will impact your business.
Please take a few minutes to complete the brief survey with your feedback on this mandate. 

CLICK HERE 

Mandatory Face Coverings

May 26, 2020

During the Governor's press conference held today, May 26th, he announced that he has issued a statewide mandate requiring masks or similar face coverings that will go into effect this Friday, May 29th. 

This means that businesses will be mandated to require all employees and customers to wear face coverings while inside, except while eating and drinking. The mandate will be enforced by the Virginia Department of Health, however, we do not know what that looks like at this time. We are waiting for more details on exactly how this will be enforced and will share those details once we receive them.

PHASE ONE: Reopening Virginia

May 9, 2020

During the Governor's press conference on Friday, May 8th, he announced the guidelines for Phase I of reopening Virginia beginning on May 15th.

Governor Northam announced that most non-essential retail businesses could open at 50% capacity while practicing the guidelines developed by his administration and the Covid-19 task force. Entertainment and public amusement facilities are to remain closed. 

Please click here for the established guidelines.
These guidelines include guidance for all business sectors, mandatory requirements, best practices, considerations, and print resources.

Download the pdf version here.

Governor Ralph Northam: Phase One Virginia Re-Opening

May 4, 2020

Governor’s Press Conference:

The Governor announced today during his press conference that Virginia will reopen for business in phases. The first of three phases for reopening will begin Friday, May 15^th. We are told by the administration that we will have the phase guidelines in writing to share with you all in the next couple of days. As soon as VRF has the official written guidelines, we will send those out by email and post them on our website.

Virginia Governor's Press Conference

April 24, 2020

Governor’s Press Conference:

Today, Governor Northam announced the first phase of his blueprint for re-opening the Virginia economy. The Governor made it clear that we will only move into Phase 1 once certain metrics are met. These metrics include seeing the percentage of positive tests and the number of hospitalizations both track downward for 14 days, hospital capacity must be in good shape, there must be a sustainable PPE supply, testing must be increased, and there must be contact tracing and isolation of individuals.

Only once these metrics are met, Virginia will move into Phase 1 which is described below.

Phase 1:

• Some businesses re-open with strict safety restrictions  
• Social distancing will continue
• Teleworking will continue to be recommended
• Face coverings will be recommended in public

To be clear, there has been no certain date announced for the re-opening of the Virginia Economy.

He would like to see this happen on May 8^th (the new date for Executive Order 53) but made it clear that this will only happen IF the requirements of a 14-day decline in positive tests and hospitalizations, etc. are met. VRF continues to be the voice of retail and has been in constant communication with the administration about the best way to re-open for the retail industry and will continue those conversations as we move forward with this process.

The Governor also mentioned that there will be two sets of guidance issued at a later date with regard to reopening. There will be one that is overarching rules for business in general, and another guidance that is industry-specific guidance for businesses like restaurants and non-essential retail. Once we receive those guidance documents, we will share those with our membership as well.

To view the Governor’s press release from earlier today, please click here.

Reconvened Session: Virginia General Assembly

April 24, 2020

Reconvened Session took place earlier this week, where the General Assembly comes back to vote on the Governor’s Amendments to any legislation that passed during the 2020 general assembly session. You received our report last week on all amendments that the Governor made to legislation that impacts the retail industry. One of the main issues was that of Minimum Wage. Legislation passed in the 2020 Session to increase the Minimum Wage starting January 1, 2021, however, the Governor amended that legislation to delay the enactment until May 1, 2021. The General Assembly narrowly approved the Governor’s amendment during Reconvened Session, therefore the increase will now go into effect as of May 1, 2021.

PPP Loan: New Guidance

April 24, 2020

As you may already be aware, Congress passed, and the President has signed, the latest stimulus that infused additional funds into the Payroll Protection Program. Anyone that is seeking a loan through this program and has not already filled out their application with a lender, is advised to do so as soon as possible. There is a strong likelihood that these funds will run out again, due to the high demand.

• You can find the new guidance document issued by SBA with regard to the PPP by clicking here.

US Chamber of Commerce Foundation: Small Business Loans (3-20 Employees)

The US Chamber of Commerce Foundation is offering The Save Small Business Fund, a grantmaking initiative offering short-term relief for small employers in the United States and its territories.

SEE IF YOUR BUSINESS QUALIFIES
www.Savesmallbusiness.com

Northam orders recreational businesses to remain closed until May 8

April 15, 2020

Executive order 53 extended two additional weeks, now it will expire May 8^th, rather than April 23^rd. 

• You can view Executive Order 53, by clicking here. 

Executive order 55, Stay at Home Order, remains in effect until June 10^th. 

• You can find executive order 55, by clicking here.

Summary of Governor Northam’s Actions on 2020 Bills

April 15, 2020

Below is Summary of Governor Northam’s Actions on Bills from our 2020 Session Wrap-Up:

Minimum Wage:

HB 395 Minimum Wage Increase – Governor’s Amendment delays effective date to 5-1-2021

SB 7 Minimum Wage Increase – Governor’s Amendment delays effective date to 5-1-2021

Felony Threshold for Larceny:

HB 995 Grand larceny; increases threshold amount – Signed by Governor and effective 7-1-20

SB 788 Grand larceny; increases threshold amount – Signed by Governor and effective 7-1-20

Shopping Carts:

SB 631 Abandoned and stolen shopping carts; local regulation – Signed by Governor and effective 7-1-20

Plastic Bag Tax:

HB 534 Disposable plastic bag; local tax – Signed by Governor and effective 1-1-21

SB 11 Disposable plastic bag; local tax – Signed by Governor and effective 1-1-21

Worker’s Compensation:

HB 46 Workers' compensation; employer to notify employee of intent – Signed by Governor and effective 7-1-20

HB 55 Worker cooperatives; established as a category of cooperative associations – Signed by Governor and effective 7-1-20

HB 617 Workers' compensation; repetitive motion injuries – Signed by Governor and effective 7-1-20

Employer Mandates/Private Cause of Action:

HB 108 Legal holidays; Election Day – Signed by Governor and effective 7-1-20

HB 330 Employment; covenants not to compete, low-wage employees, civil penalty – Signed by Governor and effective 7-1-20

HB 622 Limiting employees' sharing of wage information; prohibited, civil penalty – Amended by Governor

HB 624 Human Rights, Division of; requirements for equal pay irrespective of sex – Signed by Governor and effective 7-1-20

HB 689 Wage payment statements; statement of earnings – Signed by Governor and effective 3-10-20

HB 798 Employment; prohibited retaliatory action – Signed by Governor and effective 7-1-20

HB 827 Virginia Human Rights Act; discrimination on the basis of pregnancy, childbirth – Signed by Governor and effective 7-1-20

HB 1049 Prohibited discrimination; sexual orientation and gender identity – Signed by Governor and effective 7-1-20

HB 1147 Epinephrine required in certain public places – Signed by Governor and effective 7-1-20

SB 480 Employment; covenants not to compete, definition of low-wage employees, civil penalty Signed by Governor and effective 7-1-20

SB 530 Possession and administration of epinephrine; restaurant employee – Signed by Governor and effective 7-1-20

SB 548 Unemployment compensation – Amended by Governor

SB 601 Legal holidays; Election Day – Signed by Governor and effective 7-1-20

SB 712 Virginia Human Rights Act; discrimination on the basis of pregnancy, childbirth – Signed by Governor and effective 7-1-20

SB 868 Discrimination; prohibited in public accommodations, etc., causes of action – Signed by Governor and  effective 7-1-20

Environmental Issues:

HB 533 Expanded polystyrene food service containers; prohibition on dispensing, civil penalty – Signed by Governor, but must be re-enacted during 2021 Session

HB 1154 Litter taxes; increases annual amount of tax – Signed by Governor and effective 7-1-20

HB 1354 Plastic Pollution Prevention Advisory Council; established – Signed by Governor and effective 7-1-20

SB 590 Advanced recycling; incentives in income tax, sales tax, and machinery and tools tax – Signed by Governor

Tax Issues:

HB 486 Henry and Pittsylvania Counties and City of Danville; additional sales and use tax – Signed by Governor and effective 7-1-20

HB 785 Local taxing authority – Amended by Governor

HB 888 Sales tax exemption; gun safes – Signed by Governor and effective 7-1-20

HB 1262 Transient occupancy tax; certain counties – Signed by Governor and effective 7-1-20

SB 107 Transient occupancy tax; removes July 1, 2021, sunset date from Arlington County, etc – Signed by Governor and effective 7-1-20

SB 224 Gloucester County; additional sales and use tax, appropriations to incorporated towns – Signed by Governor and effective 7-1-20

SB 268 Retail Sales and Use Tax; exemption for certain gun safes – Signed by Governor and effective 7-1-20

SB 588 Tax authority of localities; parity between cities and counties – Amended by Governor

SB 943 Mecklenburg County; additional sales and use tax, appropriations to incorporated towns – Signed by Governor and effective 7-1-20

Nonpayment of Wages/ Worker Misclassification:

HB 123 Nonpayment of wage; private action, liability for payment of wages due under construction contracts – Signed by Governor and effective 7-1-20

HB 336 Nonpayment of wages; investigations – Signed by Governor and effective 7-1-20

HB 337 Nonpayment of wages; discriminatory actions prohibited – Signed by Governor and effective 7-1-20

HB 984 Misclassification of workers; cause of action – Signed by Governor and effective 7-1-20

HB 1199 Employee misclassification; retaliatory actions prohibited, civil penalty – Signed by Governor and effective 7-1-20

HB 1407 Misclassification of employees as independent contractors; Department of Taxation to investigate –

Signed by Governor and effective 1-1-21

SB 49 Nonpayment of wages; investigations – Signed by Governor and effective 7-1-20

SB 429 Child support; withholding from income of an independent contractor – Signed by Governor and effective 7-1-20

SB 662 Employee misclassification; retaliatory actions prohibited, civil penalty – Signed by Governor and effective 7-1-20

SB 744 Misclassification of employees as independent contractors; Department of Taxation to investigate – Signed by Governor and effective 1-1-20

SB 838 Nonpayment of wages; private action; liability for payment of wages due – Signed by Governor and effective 7-1-20

SB 894 Misclassification of workers; cause of action – Signed by Governor and effective 7-1-20

Energy:

HB 868 Electric utilities; right to shop – Signed by Governor, but must be re-enacted in 2021 Session

HB 889 Electric utilities; retail competition – Signed by Governor and effective 7-1-20

HB 1526 Virginia Clean Economy Act – Signed by Governor and effective 7-1-20

HB 1664 Electric utilities; offshore wind development, facilities located in federal waters – Amended by Governor

SB 94 Virginia Energy Plan; relating to the Commonwealth Energy Policy – Signed by Governor and effective 7-1-20

SB 851 Electric utility regulation; environmental goals – Signed by Governor and effective 7-1-20

SB 860 Electric utilities; offshore wind development – Amended by Governor

SB 998 Offshore wind generation facilities; development of facilities – Amended by Governor

ABC:

HB 390 Alcoholic beverage control; license and fee reform – Signed by Governor and effective 7-1-20

HB 923 Alcoholic beverage control; possession or consumption of alcoholic beverages by interdicted persons – Signed by Governor and effective 7-1-20

HB 1088 Alcoholic beverage control; walking tour permit – Signed by Governor and effective 7-1-20

SB 181 Alcoholic beverage control; commercial lifestyle center – Signed by Governor and effective 7-1-20

SB 389 Alcoholic beverage control; license and fee reform – Signed by Governor and effective 7-1-20

SB 395 Alcoholic beverage control; residency requirement for licensure – Signed by Governor and effective 7-1-20

SB 497 Alcoholic beverage control; mixed beverage restaurant license; mini bottles – Signed by Governor and effective 7-1-20

SB 833 Alcoholic beverage control; cocktail supply shop license – Signed by Governor and effective 7-1-20

Labeling:

HB 119 Milk; definition, misbranding product, prohibition – Vetoed by Governor

Updates from Federal Reserve, OSHA, VA Dept of Agriculture and Consumer Services

April 10, 2020

Please see below for this week's updates from the Federal Reserve, OSHA, Department of Treasury, Virginia Department of Agriculture and Consumer Services, as well as the latest from Governor Northam regarding restaurant relief.  

Federal Reserve Announcement

Yesterday, the Federal Reserve issued a statement announcing an additional $2.3 Trillion dollars in lending to enhance lender’s liquidity. The Federal Reserve stated that they hope that this will “Bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP) by supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPP provides loans to small businesses so that they can keep their workers on the payroll. The Paycheck Protection Program Liquidity Facility (PPPLF) will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value.”

To view the full announcement click here.

It is important to note that this does not provide additional money to the PPP. That must be accomplished through legislative action. Yesterday, Senator McConnell attempted a voice vote to add an additional $250 Billion dollars to the PPP, however, they did not achieve unanimous consent for the voice vote, therefore, it has stalled in the Senate until at least Monday when the Senate is next in Session.

OSHA Guidance for Retail Workers

OSHA has released a one-page guidance document for workplace safety during the COVID-19 Pandemic. That document can be found here.

The full 35-page Guidance Document Can be found here. 

Department of Treasury FAQ on Paycheck Program Loans

An updated FAQ page on the PPP Loan process was issued by the Department of Treasury and can be found here.

Additional Resources for Small Businesses with Regard to the CARES Act

• Top-line Overview of the Program
• Additional Information for Lenders 
• Additional Information for Borrowers 
• Borrower Application Form (Updated 4/2/20)
• Lender Application Form
• New Lender Application Form (Federally Insured Depository Institutions, Federally Insured Credit Unions, Farm Credit System Institutions)
• Interim Final Rule
• Interim Final Rule on Affiliation
• Applicable Affiliation Rules
• Find An eligible lender

For more information and updates, visit Treasury.gov/CARES and SBA.gov/PaycheckProtection.
 

Virginia Department of Agriculture and Consumer Services Guidance

The Virginia Department of Agriculture and Consumer Services' guidance for grocery and retail food stores regarding COVID-19 can be found here. 
 

Governor Northam Announces Additional Relief for Restaurants

Northam authorized Virginia ABC to defer annual fees for licenses and permits up for renewal through June.

In addition, he directed ABC to allow establishments with mixed beverage licenses to sell mixed beverages through takeout or delivery. To find the full press release click here.

Updates from NRF, FDA

April 7, 2020 

The National Retail Federation has provided several new resources for Retailers over the last few days. One of the most helpful ones is the link to their webinar on Small Business Loans which can be found here. We know that the process for applying for these loans has been very frustrating, but we are hopeful that things will begin run more smoothly over the next several days.

Additional information provided by the NRF in their latest memo:

Assistance for Small Businesses
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, veterans’ organizations and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

• For a top-line overview of the program click HERE.
• If you’re a lender, more information can be found HERE.
• If you’re a borrower, more information can be found HERE.
• The application for borrowers can be found HERE.

Paycheck Protection Program Resources

• SBA Paycheck Protection Program website
• Department of the Treasury CARES Act website

FDA Updated Social Distancing Guidance for Food Retail Establishments

FDA has provided updated recommendations to employers on maintaining social distancing among employees in food retail establishments and on whether employees should wear face coverings to prevent exposure to COVID-19. The information is found in the “Questions & Answers for Industry” section of FDA’s Food Safety & the Coronavirus Disease 2019 resource page.

NOW OPEN: SBA Paycheck Protection Program Applications

April 3, 2020 

As of Friday, April 3, the Small Business Administration has opened up the Paycheck Protection Program loan applications. The application can be downloaded here. 

A few things to note: 

Paycheck Protection Program Loan: LIVE April 3

April 1, 2020 

• Overview of the Paycheck Protection Program (PPP)
  The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  
  
• Sample Application Form
  The SBA has provided a sample Application Form so that you can begin to gather the information you will need for Friday, April 3.
  
  
• PPP Borrower Fact Sheet by Village Bank
  
  
  
• PPP Guide for Small Businesses by the US Chamber of Commerce

PPP Loan - vs - Economic Injury Disaster Loan

April 1, 2020 

It is important to remember that you should consult your local lender to determine which loan, the Economic Injury Disaster Loan or the Paycheck Protection Program Loan is best for your business.

• Overview of the Paycheck Protection Program (PPP)
  The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  
  
• Economic Injury Disaster Loan (EIDL) provided by the SBA
  More insights on EIDL from Village Bank, open PDF.
  
  
• SIDE BY SIDE COMPARISON
  Here is a side by side comparison of the PPP and the EIDL provided by the National Federation of Independent Business.
  
  

Paycheck Protection Program Loan: Guide & Checklist

March 31, 2020 

CARES Act: The Small Business Owner’s Guide

March 31, 2020 

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now.

View PDF Here

Governor Northam Issues Stay at Home Order Via Executive Order 55

March 30, 2020 | 3:30 pm

Governor Ralph Northam just issued a Stay at Home Oder through Executive Order 55. As of now, this order does not impact what businesses may or may not remain open. Those were outlined in Executive Order 53 and can be found here.

This order will impact our members in the sense that the Social Distancing Guidelines will be more stringently enforced, including the 10 patron limit in non-essential retail.

It is important to note that this Order runs from now until June 10, 2020.

To find the full press release, click here.

To find Executive Order 55, click here.

Families First Coronavirus Response Act

Families First Coronavirus Response Act  (HB 6201)  
Status: Passed and signed by the President  

The Families First Coronavirus Response Act (HB 6201) responds to the coronavirus outbreak by providing paid sick leave and free coronavirus testing, expanding food assistance and unemployment benefits, and requiring employers to provide additional protections for health care workers. 

Continue Reading

Summary of CARES Act as Passed the US Senate

Below is a summary of the CARES Act as it Passed the US Senate. The Bill still must pass the House and be signed by the President before it becomes law. The US House is scheduled to vote on the CARES Act tomorrow, March 27^th, and we do not expect to see much if anything changes with regard to the legislation. We will also send out a final summary once it passes the House and is signed by the President.

Summary of Key Provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act
March 25, 2020

Small Business “Paycheck Protection Program”

• Provides $350 billion to support loans through a new Paycheck Protection Program for:
  • Small employers with 500 employees or fewer, as well as those that meet the current Small Business Administration (SBA) size standards;
  • Restaurant and hospitality businesses with fewer than 500 employees per location;
  • Self-employed individuals and “gig economy” individuals; and
  • Certain nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations, and tribal business concerns with under 500 employees
    
    
• The size of the loans would equal 250 percent of an employer’s average monthly payroll. The maximum loan amount would be $10 million.
  
  
• Covered payroll costs include salary, wages and payment of cash tips (up to an annual rate of pay of $100,000); employee group health care benefits, including insurance premiums; retirement contributions; and covered leave.
  
  
• Cost of participation in the program would be reduced for both borrowers and lenders by providing fee waivers, an automatic deferment of payments for one year, and no prepayment penalties.
  
  
• Loans would be available immediately through more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions, and SBA would be required to streamline the process to bring additional lenders into the program.
  
  
• The Treasury Secretary would be authorized to expedite the addition of new lenders and make further enhancements to quickly expedite delivery of capital to small employers.
  
  
• Increases the maximum loan amount for SBA Express loans from $350,000 to $1 million. Express loans provide borrowers with revolving lines of credit for working capital purposes.

Click here to view a full summary of CARES Act. 

FAQ page on Executive Order 53

• FAQ page for Governor Northam’s Executive Order 53. 
  Click here
  
  
• Virginia Department of Health’s Guidance Document on Governor Northam’s Executive Order 53 as it relates to Restaurants. 
  Click here
  
  
• If you have questions about your business with regard to Governor Northam’s Executive Order 53, you can email This email address is being protected from spambots. You need JavaScript enabled to view it.  to get an answer directly from the administration. However, yourThis email address is being protected from spambots. You need JavaScript enabled to view it. is happy to field those questions for you as well.

Small Business Administration Economic Injury Disaster Loan

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for each affected small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The interest rate is 3.75% for small businesses and offer repayment plans up to 30 years. The governor needs to declare an economic injury disaster to get this moving in Virginia, which is expected within the week.

MORE INFORMATION

Information for Food Establishments Regarding COVID-19: Restrictions on Public Gatherings and Social Distancing

In an effort to provide guidance to food establishments on how to operate in adherence to guidelines for protecting public health, the Virginia Department of Health (VDH) provides the following key requirements and recommendations.

Virginia Department of Health Guidance

Update on Virginia's Income Tax Payment Deadlines

Governor Ralph Northam requested that the Department of Taxation extend the due date for certain Virginia income tax payments to June 1, 2020 in response to the coronavirus disease 2019 (COVID-19) crisis. The relevant filing deadlines will remain the same. The full bulletin provides additional information regarding this extension and penalty waiver program.

To view the full Tax Bulletin, click here.

DOL Guidance on Families First Coronavirus Response Act (Paid Leave)

The Department of Labor just published information that gives a small amount of guidance with regard to the Families First Coronavirus Response Act that was just enacted. This Act will take effect on April 1, 2020, and applies to employers with fewer than 500 employees. Below you will find links to the Guidance issued by the DOL. There is a Fact Sheet for Employees, a Fact Sheet for Employers, and a Questions and Answers link. This guidance is only the first round of information that will be coming from the Department of Labor’s Wage and Hour Division.

• To view the full release from the Department of Labor, click here.
• Fact Sheet for Employers, click here.
• Fact Sheet for Employees, click here.
• Questions and Answers, click here.

Webinar: Applying for SBA Disaster Loans - Economic Injury Disaster Loans

by Richmond District Office

REGISTER HERE

Henrico Approves Temporary Freeze on Penalties, Interest for Major Taxes

In response to the challenges presented by COVID-19, the Henrico County Board of Supervisors adopted an emergency ordinance enacting temporary relief from penalties and interest on several major taxes. Now through August, Henrico businesses will not be charged with any penalties or interest on meals and hotel tax payments. In addition, for the next 60 days after the June 5 due date, there will be no penalties or interest on machinery and tools, commercial and residential real estate, and personal property taxes for residents and businesses.

HENRICO PRESS RELEASE

WEBINARS: COVID-19 Help & Legal Updates

Dominion Payroll is providing webinars and legal help on topics like FMLA & COVID-19 Legislation.

Webinar Schedule • Legal Updates • Downloadable Templates • Reliable Resources

VIEW WEBINAR SCHEDULE

U.S. DEPARTMENT OF LABOR: Paid Leave

The U.S. Treasury Department, Internal Revenue Service and the U.S. Department of Labor announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act, signed by President Trump on March 18, 2020.

Key Takeaways...

EXECUTIVE ORDER

TEMPORARY RESTRICTIONS ON RESTAURANTS, RECREATIONAL, ENTERTAINMENT, GATHERINGS, NON-ESSENTIAL RETAIL BUSINESSES:

EFFECTIVE: 11:59 p.m., Tuesday, March 24, 2020, until 11:59 p.m., Thursday, April 23, 2020

Click here for the official executive order.

City of Richmond Meals Tax Amnesty

The City of Richmond has unrolled an amnesty program for restaurants “for all penalties and interest on most local taxes due between March 13 and June 30,” including payment on the city’s meals tax normally due to the city on the 20th of every month. The restaurants would still owe the city their March meals tax payment, but removing late fees would allow restaurants to pay the amount down the road without penalties so they can use their existing capital to pay staff and bills in the immediate future.

Suspension of Utility Disconnection

In response to an emergency petition the State Corporation Commission has blocked electric, gas, and water companies from disconnecting service for the next 60 days (as of March 18).

Status: Active 

MORE INFO: https://www.scc.virginia.gov/newsrel/r_noshutoff_20.aspx

Governor Mandates/Bans:

A ban on gatherings of 10 people or more, given signs of community spread. Gov. Ralph Northam’s administration issued an emergency order allowing law enforcement agencies to enforce the ban inside restaurants, gyms and theaters. Full order can be found here.

Status: Active  

Unemployment Relief

Gov. Ralph Northam said Tuesday that he has directed the commissioner of the Virginia Employment Commission to waive the one-week waiting period for people to receive unemployment benefits as well as the normal requirement that those receiving unemployment benefits must conduct two job searches a week. 

  
In addition, the governor’s office said Virginians may be eligible to receive unemployment benefits if:

• their employer needs to “temporarily slow or cease operations due to the coronavirus outbreak”;
• they have been issued a notice to self-quarantine by a medical or public health official and are not receiving paid sick or medical leave from their employer; or
• they must stay home to care for an ill family member and are not receiving paid family medical leave from their employer

Status: Actively accepting applications  

MORE INFO: http://www.vec.virginia.gov/node/11699

Economic Stimulus Package

The Treasury Department will be asking Congress for $500 billion in direct payouts for taxpayers as part of a $1 trillion stimulus package. The two rounds of direct payments to taxpayers, each a total of $250 billion, would be sent on April 6 and then the second round would be sent on May 18, according to the proposal. They would be tiered payments, with the amounts based on income level and family size, the proposal says. Both payments would be for the same amount. The Treasury is also asking for $50 billion for the airline industry, a small business interruption loan program of $300 billion, and $150 billion for other distressed sectors, the proposal said. 

Status: We expect the Senate and House to have their own proposals as well, so the final package is still unclear. See below for a more in-depth summary of this bill.