Labor & Employment

Employment; paid sick leave; civil penalties; civil actions. Requires one hour of paid sick leave for every 30 hours worked for all employees of private employers and state and local governments, with certain exceptions. The bill requires that employees who are employed and compensated on a fee-for-service basis accrue paid sick leave in accordance with regulations adopted by the Commissioner of Labor and Industry. The bill provides that employees transferred to a separate division or location remain entitled to previously accrued paid sick leave and that employees retain their accrued paid sick leave under any successor employer. The bill allows employers to provide a more generous paid sick leave policy than prescribed by its provisions and specifies that employees, in addition to using paid sick leave for their physical or mental illness or to care for a family member, may use paid sick leave to seek or obtain certain services or to relocate or secure an existing home due to domestic abuse, sexual assault, or stalking. The bill requires the Commissioner to promulgate regulations for the implementation and enforcement of the bill's provisions by July 1, 2027. The bill authorizes the Commissioner, in the case of a knowing violation, to subject an employer to a civil penalty not to exceed $150 for the first violation, $300 for the second violation, and $500 for each successive violation. The Commissioner or Attorney General may commence administrative proceedings or bring a civil action to enforce the bill's provisions. Additionally, the bill authorizes an aggrieved employee to bring a civil action against the employer in which he may recover double the amount of any unpaid sick leave and the amount of any actual damages suffered as the result of the employer's violation. Certain provisions of the bill have a delayed effective date of July 1, 2027. This bill incorporates SB 372 and is identical to HB 5.

Workforce Innovation and Opportunity Act Adult and Dislocated Worker funds; minimum allocation requirement waived. Authorizes the Department of Workforce Development and Advancement to waive the 40 percent allocation requirement of certain funding under the federal Workforce Innovation and Opportunity Act of 2014 for a local workforce development board that submits a request for a waiver and demonstrates that the board is unable to meet the requirement due to (i) a lack of available training providers in the local workforce development area, (ii) a lack of demand for training services among eligible participants, or (iii) other extraordinary circumstances. The bill requires the Department to develop and publish a process for the application and approval of such waivers.

Unemployment benefits; maximum duration. Provides that, beginning July 1, 2026, for claims effective on or after July 1, 2026, an eligible individual's weekly unemployment compensation benefit amount shall be paid for a maximum duration of 26 weeks.

Economic development incentives; wage requirements. Requires companies to pay an average wage for the jobs eligible for assistance under the component programs of the Virginia Jobs Investment Program that is no less than the prevailing average wage, defined in the bill, or, in the case of an economically distressed locality, defined in the bill, no less than 85 percent of the prevailing average wage. Under current law, to be eligible for the component programs, companies must pay a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, whichever is higher, and in areas that have an unemployment rate of 1.5 times the statewide average unemployment rate, the wage rate minimum may be waived. The bill also authorizes the payment of Virginia Investment Performance Grants if the average wage paid by the eligible manufacturer or research and development service, excluding fringe benefits, is no less than 85 percent of the prevailing average wage in localities with either (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year or (ii) a poverty rate for the most recent calendar year for which such data is available that exceeds the statewide average poverty rate for that year. Under current law, such authorization is limited to those localities meeting both the unemployment rate and poverty rate thresholds.