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HB338 • 2026

Service employees; authority of local governments, definition.

An Act to amend the Code of Virginia by adding in Article 5 of Chapter 9 of Title 15.2 a section numbered 15.2-988, relating to authority of local governments; service employees.

Education Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Lopez
Last action
2026-04-08
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The bill does not specify penalties for non-compliance, leaving it open-ended.

Local Government Authority on Service Employees

This act allows local governments in Virginia to create rules about how successor employers must treat current workers when taking over a job site.

What This Bill Does

  • Allows localities to make laws that require new service employers to keep existing employees for up to 90 days during a transition period.
  • Requires new employers to give reasons if they fire any of the kept employees, and to hire from a list based on how long people have worked there.
  • Makes it mandatory for current or awarding authorities to inform workers about changes at least one month before a successor employer starts work.
  • Necessitates that new employers provide information about existing staff to their successors.
  • Requires new employers to evaluate the performance of kept employees after 90 days.

Who It Names or Affects

  • Local governments in Virginia
  • Service employers and their workers

Terms To Know

Successor service employer
A new company that takes over providing services from an existing one.
Incumbent service employees
Workers who are currently employed by the original service provider.

Limits and Unknowns

  • The bill does not specify what happens if a locality chooses not to enact such ordinances or resolutions.
  • It is unclear how this act will be enforced and monitored at the local level.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB338ASC1

2026-02-18 • Committee

General Laws and Technology Amendment

Plain English: The amendment removes references to schools and institutions of higher education in the bill text.

  • Removes 'school' from line 19 of the bill.
  • Removes 'at school' from line 32 of the bill.
  • The amendment's text is incomplete and does not provide a full understanding of its impact beyond removing specific phrases.
HB338AS1

2026-02-19 • Committee

General Laws and Technology Amendment

Plain English: The amendment to HB338 removes references to 'school' and 'institution of higher education' in the bill text.

  • Removes mentions of 'school' where they appear.
  • Strikes out instances of 'institution of higher education'.
  • The exact impact on the meaning or application of the bill is unclear without seeing the full context and remaining text.
HB338EDOC

2026-03-02 • Senate

Senate Amendments

Plain English: The amendment modifies the bill by removing references to schools and institutions of higher education in certain sections.

  • Removes 'school' from line 19 of the bill text.
  • Removes 'at school' from line 32 of the bill text.
  • The amendment's text is incomplete and does not provide full context, making it unclear what specific sections are being modified beyond removing references to schools and institutions of higher education.

Bill History

  1. 2026-04-08 Governor

    Approved by Governor-Chapter 384 (effective 7/1/2026)

  2. 2026-04-08 Governor

    Acts of Assembly Chapter text (CHAP0384)

  3. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  4. 2026-03-14 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  5. 2026-03-12 House

    Signed by Speaker

  6. 2026-03-11 Senate

    Signed by President

  7. 2026-03-11 House

    Enrolled

  8. 2026-03-11 House

    Bill text as passed House and Senate (HB338ER)

  9. 2026-03-04 House

    Senate amendments agreed to by House (64-Y 32-N 0-A)

  10. 2026-03-02 Senate

    Read third time

  11. 2026-03-02 Senate

    Engrossed by Senate as amended

  12. 2026-03-02 General Laws and Technology

    General Laws and Technology Amendments agreed to

  13. 2026-03-02 Senate

    Passed Senate with amendments (21-Y 19-N 0-A)

  14. 2026-02-27 Senate

    Read third time

  15. 2026-02-27 Senate

    Passed by for the day

  16. 2026-02-27 Senate

    Passed by for the day

  17. 2026-02-26 Senate

    Rules suspended

  18. 2026-02-26 Senate

    Rules suspended

  19. 2026-02-26 Senate

    Passed by for the day

  20. 2026-02-26 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  21. 2026-02-26 Senate

    Passed by for the day Block Vote (Voice Vote)

  22. 2026-02-25 Finance and Appropriations

    Reported from Finance and Appropriations (10-Y 5-N)

  23. 2026-02-18 General Laws and Technology

    Reported from General Laws and Technology with amendments and rereferred to Finance and Appropriations (8-Y 6-N)

  24. 2026-02-18 Senate

    Senate committee offered

  25. 2026-02-10 Senate

    Constitutional reading dispensed (on 1st reading)

  26. 2026-02-10 General Laws and Technology

    Referred to Committee on General Laws and Technology

  27. 2026-02-09 House

    Read third time and passed House (62-Y 35-N 0-A)

  28. 2026-02-06 House

    Read second time

  29. 2026-02-06 House

    committee substitute agreed to

  30. 2026-02-06 House

    Engrossed by House - committee substitute

  31. 2026-02-05 House

    Read first time

  32. 2026-02-03 Labor and Commerce

    Reported from Labor and Commerce with substitute (15-Y 7-N)

  33. 2026-02-03 Labor and Commerce

    Committee substitute printed 26106535D-H1

  34. 2026-01-29 Subcommittee #2

    Subcommittee recommends reporting with substitute (5-Y 2-N)

  35. 2026-01-29 Subcommittee #2

    House subcommittee offered

  36. 2026-01-19 Subcommittee #2

    Assigned HCL sub: Subcommittee #2

  37. 2026-01-12 House

    Prefiled and ordered printed; Offered 01-14-2026 26104990D

  38. 2026-01-12 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

Authority of local governments; service employees.
Permits a locality to provide for certain requirements concerning successor service employers, defined in the bill, by local ordinance or resolution. For example, such local ordinance or resolution may require that successor service employers retain incumbent service employees during a transition period of 90 days. Under the bill, service employees are those who perform work in connection with the care or maintenance of property, services at an airport, or food preparation services at schools. The bill provides that an employer that violates the provisions of a local ordinance or resolution enacted pursuant to the bill may be subject to a civil action and monetary damages. This bill is identical to SB 430.

Current Bill Text

Read the full stored bill text
An Act to amend the Code of Virginia by adding in Article 5 of Chapter 9 of Title 15.2 a section numbered
15.2-988
, relating to authority of local governments; service employees.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 5 of Chapter 9 of Title 15.2 a section numbered
15.2-988
as follows:
§
15.2-988
. Service employees; transition period.
A. For the purposes of this section:
"Awarding authority" means any person that awards a service contract or subcontract to a service employer. "Awarding authority" does not include the United States or the Commonwealth but may, at the election of the governing body of a locality, include such locality.
"Covered location" means, at the election of the governing body of a locality, any one of the following, whether publicly or privately owned: (i) a multifamily residential building with more than 50 units; (ii) a commercial center, office building, or complex of contiguous commercial or office buildings occupying more than 75,000 square feet; (iii) an elementary or secondary school; (iv) a cultural center or complex, such as a museum, convention center, arena, or performance hall; (v) an industrial site or pharmaceutical lab; (vi) an airport or train station; or (vii) a warehouse or distribution center.
"Employer" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, or any other legal or commercial entity that employs service employees. "Employer" may, at the election of the governing body of a locality, include such locality. "Employer" does not include the United States or the Commonwealth.
"Service employee" means an employee employed at least 16 hours per week at a covered location performing (i) work in connection with the care or maintenance of property, including a janitor, security officer, groundskeeper, concierge, door staff, maintenance technician, handyman, superintendent, elevator operator, window cleaner, or building engineer; (ii) passenger-related security services, cargo-related and ramp services, and in-terminal, passenger handling, and cleaning services at an airport; or (iii) food preparation services at an elementary or secondary school.
"Successor service employer" means an employer that (i) is awarded a contract for service employees to provide, in whole or in part, services that are substantially similar to those provided by an incumbent service employer at any time during the previous 90 days; (ii) has purchased or acquired control of a property located in a certain locality where an incumbent service employer directly employed service employees at any time during the previous 90 days; or (iii) terminates a contract for service employees and hires service employees as its direct employees to perform services that are substantially similar to those provided during the previous 90 days within 90 days after a contract for service employees is terminated or canceled.
"Transition period" means the 90-day time period from the date the successor service employer begins work at a covered location.
B. A locality may, by ordinance or resolution, require compliance with one or more of the following provisions:
1. That successor service employers shall retain incumbent service employees during the transition period.
2. That successor service employers may dismiss retained service employees during the transition period only (i) for just cause or (ii) as a part of a reduction in its workforce if the successor service employer (a) finds that fewer service employees are required to perform the work than the incumbent service employer had employed; (b) retains service employees by seniority within each job classification; (c) maintains a preferential hiring list of those service employees not retained; and (d) hires any additional service employees from such list, in order of seniority, until all affected service employees have been offered employment.
3. That, as soon as practicable, but no later than 30 days before a successor service employer begins work at a work site, the awarding authority or incumbent service employer shall provide written notice to the incumbent service employees and their collective bargaining representative, if applicable, that a successor service employer will become the new service employer at the work site.
4. That the awarding authority or incumbent service employer shall provide a list of relevant information, including the names, positions, and contact information of any incumbent service employees, to the successor service employer. Such notice shall be given no later than 30 days prior to the start of the transition period.
5. That the successor service employer shall perform a written performance evaluation for each retained service employee at the end of the 90-day transition employment period.
6. That any service employee who suffers loss by reason of a violation of any provision of a local ordinance or resolution enacted pursuant to this section may bring a civil action against his employer to enforce such local ordinance or resolution by judicial order and to obtain back pay for each day during which the violation continues, inclusive of any benefits the service employee would have received. Any person who is successful in such action shall recover reasonable attorney fees, witness fees, and court costs incurred in bringing such action. A finding of a willful violation of the provisions of this section may increase damages by three times the actual damages sustained or $1,000, whichever is greater.
C. Notwithstanding any provision of law to the contrary, a successor service employer may retain fewer than all incumbent service employees during the transition period if it finds that fewer service employees are necessary to perform the work.