As SESCO has been reporting over the last several months, Virginia’s legislators and Governor have passed and signed into law the following sweeping employment regulations that affect all public and private employers. Please consider the following summaries of each regulation as well as SESCO staff recommendations to ensure compliance.

Expanded Definition of “Wages”

Virginia Statute HB238

This new law redefines “wages” and will become effective July 1, 2026.

Under the new definition, wages includes any renumeration an employer owes to an employee, including hourly wages, minimum wages, piece rate wages, day rates, salaries, overtime wages, legally required prevailing wages, commissions, tips and bonuses.

The most important requirement is that in Virginia, once a commission is earned, it must be paid regardless of policies such as claw backs, employment standing, employed when the commission is paid, etc.

SESCO Staff Recommendations

Pay plans and practices need to be audited for wage and hour compliance, both federal DOL as well as Virginia wage laws. Pay plans, especially within retail organizations that pay commissions and bonuses such as automotive dealerships and organizations that pay tips such as restaurants, need to ensure that their individual pay plans are reduced to writing and signed and dated.

Ensure that overtime is calculated on all non-discretionary bonuses, commissions and incentives. You can contact SESCO to ensure compliance, but this issue is the number one FLSA wage-hour compliance matter for all employers across the United States. Commissions, bonuses and incentives are wages earned for the purposes of overtime and please know that payroll providers do not ensure compliance with this requirement.

As SESCO is considered a national expert on wage and hour compliance, both federal and state, have your consultant conduct an onsite or virtual audit of all compensation practices. Retainer clients (monthly service agreement) receive these audits at no additional charge.

Wage Transparency (Job Postings)

Virginia Statue SB215

As of July 1, 2026, employers are required to disclose wage and salary ranges in all public and internal postings for each job opening, promotion, transfer with the employer.

The “wage or salary range” means the minimum and maximum wage or salary for the position as set forth in good faith by a reference to a current and applicable pay scale, any previously determined wage or salary range for the position, the actual range or wages and salaries for persons currently holding equivalent positions or the budgeted amount available for the position as current and applicable.

Any analysis of whether the wage or salary range has been set in good faith shall consider, among other items, the breadth and process of the wage or salary range analysis.

As to enforcement, applicants or employees must first notify the employer of any question or concern as to wage transparency and, further, allow a fifteen (15) business day cure on behalf of the employer before filing a lawsuit.

SESCO Staff Recommendations

Consider the following SESCO Staff Recommendations to ensure compliance:

• All employers, regardless of public or private, large or small, industry or purpose, should develop a formal compensation administration plan as labor is any employer’s largest-single controllable cost. Proactive employers will fill the void of developing, implementing and communicating sound compensation philosophies and practices. For those employers that do so, you will comply with this regulation very easily.

• The application of this wage transparency is if a position is externally or internally posted. Is the employer “advertising” for applicants or employees to apply for an open position? If so, the posting must include as noted above the current and credible wage/salary scale.

Distribution of general employment applications, receipt of unsolicited resumes or applications or websites where applicants can apply for work, and where no position is currently being advertised or promoted, would not be affected by the new law. Many employers actively seek applications and/or resumes to keep the “hopper” full in case of future turnover.

• Employers need to adopt or revise job postings as well as promotions and transfers policies.

• Employers should assess the marketplace every two (2) years through a custom wage and benefits survey. This would include the employer selecting specific organizations to participate in a confidential wage and benefits survey conducted by an outside third party such as SESCO. This will go a long way to ensure the credibility of the posted wage and salary range as well as to undergird the organization’s compensation philosophy and practices.

Ban on Requesting or Discussing an Applicant’s Pay History

Virginia Statute SB215

Effective July 1, 2026, employers are prohibited from seeking or relying on a perspective employee’s wage or salary history when making hiring or compensation decisions. Of course, if an employer has a defined compensation system to include new hire rates and ranges, this ban is easily complied with.

If a prospective employee voluntarily provides wage or salary history to an employer without the employer’s prompting the request, then:

• The employer may not rely on such wage or salary history to support a wage or salary higher than the employer’s initial offer of compensation.

• The employer may not seek to confirm the wage or salary history of the prospective employee such as through reference checks to support a wage or salary higher than the wage or salary offered by the employer.

SESCO Staff Recommendations

Please consider the following SESCO staff recommendations to ensure compliance:

• Conduct an audit of all screening and hiring practices to include interviewing questions, forms and processes to ensure compliance. This would include an immediate review of your application form, to remove any questions that refer to previous positions and subsequent wage and salary history.

SESCO has revised its current application form to comply with this new ban. This application form can be purchased by clicking here and/or by calling Tonya Roark at 423-764-4127.

• Train all those who conduct interviews so that inappropriate questions to include this ban are not asked.

• Where appropriate, such as on websites or other screening and hiring documents, include a disclaimer, in effect, summarizing the ban and the employer’s compliance thereto.

Restrictions on Non-Compete Agreements

Virginia current prohibits employers from entering into or enforcing a post-employment “covenant not to compete” those earning less than $1,507.01 per week or any other nonexempt employee under the FLSA (irrespective of their total earnings) cannot be required to enter into a post-employment non-compete agreement.

Virginia Statute SB128 and SB170

As of July 1, 2026, new restrictions apply to non-compete agreements entered into, amended or renewed on or after these restrictions include:

• Any “healthcare professional” can’t be required to enter into a non-compete agreement. “Healthcare professionals” are defined as “any person licensed, registered, or certified by the Board of Medicine, Board of Nursing, Board of Optometry, Board of Psychology, or Board of Social Work.

• No covenant not to compete between an employer and employee is enforceable if such employer discharges an employee from employment without providing severance benefits or other monetary payment to such an employee, unless the employer discharges an employee for cause. Such severance benefits or other monetary payment shall be disclosed upon execution of the non-compete agreement.

SESCO Staff Recommendations

Please consider the following for compliance:

• Have SESCO audit current non-competes for compliance or have SESCO revise and/or prepare new non-competes to ensure compliance. This new statute does not affect a non-disclosure/confidentiality or non-solicitation agreement which SESCO prepares and widely recommends for various organizations and positions.

• Severance Agreements and Releases will need to be revised to comply with this new regulation. SESCO prepares and initiates compliant Severance Agreement and Releases for our clients.

Minimum Wage

Virginia Statute SB1

The current Virginia State hourly minimum wage is $12.77 per hour which was effective January 1, 2026.

The minimum wage will increase to $13.75 per hour on January 1, 2027. On January 1, 2028, it will increase again to $15.00 per hour.

Effective January 1, 2029, and annually thereafter, the minimum wage rate will be adjusted to reflect increases in the Consumer Price Index (CPI).

SESCO Staff Recommendations

Please consider the following recommendations to ensure compliance:

• Ensure all state labor law postings are compliant. SESCO provides federal and state labor law posting kits for $29.95. You can click here to order or call Tonya Roark at 423-764-4127 to order these postings and/or other SESCO forms.

Paid Sick and Safe Leave

Virginia Statute SB199

Employers, both private and public, are required to provide paid sick and safe leave to their employees.

• Effective July 1, 2027, employers with 50 or more employees must comply.

• Effective January 1, 2028, employers with 25 or more employees must comply.

• Effective January 1, 2029, employers with at least one (1) employee must comply.

The new regulations require that one (1) hour of paid sick leave for every 30 hours worked are provided to employees of private, state and local governments and employers. This law currently applies to home health workers as defined.

This new regulation does not apply to licensed healthcare employees that work less than 30 hours per week. This includes employees licensed by the following regulatory boards: counseling, dentistry, funeral directors and embalmers, LTC, medicine and nursing, nor does it apply to employees who work for employers who are licensed by the Department of Health if the employee works less than 30 hours per week.

Employees may use accrued paid sick leave for:

• Leave related to their own personal or mental illness, injury or health condition, as well as for preventative healthcare.

• Leave to take care of a sick family member (as defined).

• Leave related to domestic abuse, sexual assault or stalking.

• Employers are not required to pay out accrued unused sick and safe leave at separation for any reason of separation of employment to include termination for cause or voluntary resignation.

Employers with a current paid leave policy such as paid time off, vacation and/or sick leave, that provides an employee with an amount of paid leave sufficient to meet the requirements of the new paid sick and safe leave requirements under the same conditions as defined are not required to provide additional paid leave time.

SESCO Staff Recommendations

Consider the following SESCO staff recommendations to ensure compliance:

• All employers should have their current handbook and related policies reviewed for compliance. SESCO retainer clients (monthly service agreement) receive these reviews at no charge. These reviews are conducted by SESCO staff attorneys.

• Know that the definition of “family member” is very broad and needs to be understood for policy application specific to these leave requirements.

• Employers will need to customize policy based on whether exemptions as noted within the law and whether the employer wants to carve out coverage for specific staff positions.

• The law does require carryover provisions, so current policy that does not allow for carryover must be revised to ensure compliance with the specific carryover provisions.

• Policy needs to include employee notification standards such as a “two (2) week notice” when possible.

• Once policy is updated, employers need to review new policy revisions to all leadership and employees for a full understanding of their rights as well as responsibilities.

Paid Family and Medical Leave Insurance Program

Virginia Statute SB2

Virginia has established a new state-administered Paid Family and Medical Leave (PFML) insurance program that applies to all employers except the “Commonwealth.” Through this program, employees will receive payment from the state (Virginia Employment Commission) not by their employer. This state-administered paid family and medical leave program will be funded by payroll premiums shared by both employers and employees. Employers may deduct up to 50% of the required contributions from employees’ pay.

Employers with more than 10 employees will be required to deduct up to 50% of the required contribution. Employers with 10 or fewer employees will be required to deduct 50% of the required contribution from employee wages and will not be required to make additional employer contributions. Any deduction may not reduce an employee’s compensation below minimum wage.

• The terms under which employees may use benefits.

• The amount of benefits available.

• The procedure for filing a claim for benefits.

• A statement of the right to job protection and benefits continuation.

• A statement that discrimination and retaliatory personnel actions are prohibited.

• A statement that the employee has a right to file a complaint for violation of the statute.

• As of December 1, 2028, employees may start receiving benefits as covered.

Up to 12 weeks of paid leave in a benefit year (as defined) can be used for the following reasons:

• To care for a new child during the first year after birth, adoption or placement through foster care.

• To care for a family member with a serious health condition (as defined).

• For an individual’s own serious health condition (as defined) that makes the individual unable to perform the functions of their position of employment.

• To care for a covered military service member who is the covered individual’s next of kin or other family members.

• Qualifying leave arising out of a family member of the covered individual on military active duty, or an impending call or order to military active duty in the armed forces.

Up to four (4) weeks of paid leave in a benefit year (as defined) to be used or to seek safety services for a covered individual or family member related to domestic violence, sexual assault or stalking.

Additional details that apply include:

• Paid leave benefits equal to 80% of the average weekly wage earnings, subject to a cap of 100% of the statewide average weekly wage of which the VEC will adjust by September 30 of each year to apply beginning on January 1 of the following calendar year.

• Employees may take continuous, intermittent or reduced schedule leave, and are required to make a reasonable effort to schedule family and medical leave such as not to unduly disrupt the operations of their employer.

• Employees who worked for the employer for at least 120 days before beginning the leave are entitled to be restored to the same or equivalent position at the conclusion of the leave.

• Employers are required to maintain an employee’s healthcare benefits while on leave as if the employee had worked continuously during the leave. The employee, however, is still required to pay their fair share of the cost of the healthcare benefits.

• Employers may seek the VEC’s approval to meet the statutory obligations when using a private plan, as long as the plan meets the specific requirements enumerated in the statute. Those employers with private plans must reapply to the VEC to renew approval of their private plans every two (2) years.

• The statute empowers the VEC to take enforcement action against employers including filing civil actions, for unpaid contributions at an interest rate of 1.5% per month from the date payment is due.

• The statute requires a posting requirement including in English, Spanish and any language that is the first language spoken by at least 5% of the employee’s workforce.

SESCO Staff Recommendations

Please consider the following staff recommendations to ensure compliance:

• Employers, as with many of these new regulations, must have their current employee handbook reviewed and revised to ensure compliance with this new paid family and medical leave law. All related policies to include paid sick leave, vacation, PTO and other related leave laws must be challenged as well. All handbook reviews are conducted by one of SESCO’s staff attorneys. SESCO retainer clients (monthly service agreement) receive these reviews at no additional charge.

• Implement new forms to ensure compliance. SESCO has developed forms and they can be obtained by calling Tonya Roark at 423-764-4127.

• Train leadership as well as employees on their rights as well as responsibilities.

• Current employers with 50 or more employees, already complying with the federal DOL’s family and medical leave will need to revise their policy to state that leave will run concurrently with Virginia’s new paid family and medical leave act.

• It is critical that SESCO clients contact us when an employee may request PMFL so that we can assist in ensuring compliance with not only leave requirements but also documentation. Other laws will come into play such as the Americans with Disabilities Act as Amended, return to work – fitness for duty and others.

Heat Safety Standard

Virginia Statute SB288

The Virginia Safety and Health Codes Board is required to develop and adopt heat illness regulations by May 1, 2028.

This law will apply to employees working indoors and outdoors and the regulations will include requirements for employers to:

• Provide water, access to shade or climate-controlled environments when practical.

• Rest periods.

• Acclimatization to working in heat.

• Effective training regarding heat illness prevention.

• Implement high-heat procedures when the temperature equals to or exceeds 80 degrees Fahrenheit.

• Establish effective emergency response procedures for heat related illnesses.

The statute will provide employer exemptions for:

• Heat exposure during the provision of emergency related services that involve emergency law enforcement, emergency medical services, firefighting services, rescue and evacuation operations or emergency restoration of essential utilities including electric and telecommunication utilities.

• Heat exposure lasting no longer than 15 consecutive minutes.

SESCO Staff Recommendations

Employers will be required to develop new policies to ensure compliance. SESCO will monitor the Virginia Safety and Health Codes Board’s final heat illness regulations and subsequently recommend policy to our clients.

We urge all retainer clients (monthly service agreement) to contact us to discuss compliance with these new and complicated regulations. We suggest that SESCO clients have their policies reviewed and, most importantly, communicate new policies and practices to all leadership and employees. There are many rumors, mostly false, surrounding these laws and regulations and the sooner employers can fill the void with the facts of policies and procedures the better.

For those employers who are not SESCO retainer clients, our monthly service agreement starts as low as $40.00 per month and provides the following:

• Unlimited telephone, research and email consulting

• Up to four (4) consulting hours per annum

• Free annual employee handbook review with follow-up report

• Discounts on requested consulting

• Employers are required to disclose in internal and public job postings the good-faith wage, salary or compensation range for any job, promotion, transfer, or other employment opportunity. For claims related to posting requirements, applicants and employees must first notify the employer and allow a 15-day cure period before filing suit.
• Employers are prohibited from seeking or relying on a prospective employee’s wage or salary history when making hiring or compensation decisions. The law provides an exception when prospective employees voluntarily disclose their wage or salary history. Under these circumstances, the employer can confirm the prospective employees’ wage or salary information and use this information to offer a higher wage or salary.

If employers have any questions or concerns, we recommend they contact us to ensure compliance.  For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com

Retainer clients receive a free HR audit.

To ensure that you are receiving the most up to date information, please subscribe to SESCO News Blasts.

BILLS THAT HAVE BEEN PASSED BY HOUSE AND SENATE AND SIGNED INTO LAW BY GOVERNOR

Minimum Wage

• The current state hourly minimum wage of $12.77 per hour (that was effective January 1, 2026) will increase to $13.75 per hour effective January 1, 2027, and to $15.00 per hour effective January 1, 2028.
• Effective January 1, 2029, and annually thereafter, the minimum wage rate will be adjusted to reflect increases in the consumer price index (CPI).

Ban on Pay History Inquiries and Wage Transparency

• Effective date is July 1, 2026.
• Employers are prohibited from seeking or relying on a prospective employee’s wage or salary history when making hiring or compensation decisions. Narrow exceptions permit employers to consider salary history only when an applicant voluntarily discloses it, after an initial offer has been made, or to support a higher salary than originally offered.
• Employers are required to disclose wage or salary ranges in all public and internal job postings.  For claims related to posting requirements, applicants must first notify the employer and allow a 15-day cure period before filing suit.

Restrictions on Non-Compete Agreements

• New restrictions will apply to non-compete agreements entered into, amended, or renewed on or after July 1, 2026.
• Virginia currently prohibits employers from entering into or enforcing a post-employment “covenant not to compete” with “low-wage workers,” i.e., those earning less than $1,507.01 per week or any other non-exempt employee under the FLSA (irrespective of their earnings). Any “health care professional” can’t be required to sign a non-compete agreement. “Health care professionals” are defined as “any person licensed, registered, or certified by the Board of Medicine, Board of Nursing, Board of Optometry, Board of Psychology, or Board of Social Work.”
• As of July 1, 2026, employers are prohibited from enforcing a non-compete against any employee who was discharged without a severance offer.

Paid Family & Medical Leave Insurance Program

• A state-administered paid family and medical leave (PFML) insurance program.
• Covered employees receive payment from the state (Virginia Employment Commission) – not their employer.
• Funded by payroll premiums shared by both employers and employees. Employers may deduct up to 50% of the required contributions from employee pay. Contributions will begin on April 1, 2028. The employer contribution rate is expected to be fixed by October 1, 2027.
• Employees may receive benefits as of December 1, 2028.
• Up to 12 weeks of paid leave in a benefit year can be used for an employee’s serious health condition, to care for a family member with a serious health condition, or to care for a new child.
• Paid leave benefits will equal to 80% of the average weekly wage, subject to a cap of 100% of the statewide average weekly wage.
• Employees can receive paid family and medical leave benefits on an intermittent or reduced schedule.
• Employees are entitled to be restored to the same or equivalent position at the conclusion of the leave and employers are required to maintain an employee’s health care benefits during the leave.

Heat Safety Standard

• Virginia Safety and Health Codes Board is required to develop and adopt heat illness regulations by May 1, 2028.
• Applies to employees working indoors and outdoors.
• The regulations must include requirements for employers to: provide water, access to shade or climate-controlled environments when practicable, rest periods, acclimatization to working in heat, and effective training regarding heat illness prevention; implement high-heat procedures when the temperature equals or exceeds 80 degrees Fahrenheit; and establish effective emergency response procedures.
• Exemptions for: heat exposure during the provision of emergency services that involve emergency law enforcement, emergency medical services, firefighting services, rescue and evacuation operations, or emergency restoration of essential utilities, including electric and telecommunication utilities; and heat exposure lasting no longer than 15 consecutive minutes.

BILLS THAT HAVE BEEN PASSED BY HOUSE AND SENATE, BUT GOVERNOR SENT BACK WITH AMENDMENTS (NOT LAW YET)

Right to Work

• For the first time in history, public employees (including employees of the state and localities, teachers, firefighters, etc.) and home care workers will have the right to unionize and collectively bargain. It appears the legislation will also apply to employees of political subdivisions, such as Community Service Boards (CSBs) and Housing Authorities.
• The legislation builds on a 2020 law that lifted Virginia’s blanket ban on public sector collective bargaining by allowing workers to collectively bargain in localities that allowed for such in their regulations or voted to allow.
• The legislation creates the Public Employee Relations Board (PERB). The PERB will determine appropriate bargaining units and provide for certification and decertification elections for exclusive bargaining representatives of state employees and local government employees. The bill requires public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment.
• The legislation also establishes the Virginia Home Care Authority (VCCA). The VCCA will serve as the public employer of individual providers for purposes of collective bargaining. The legislation repeals a provision that declares that in any procedure providing for the designation, selection, or authorization of a labor organization to represent employees the right of an individual employee to vote by secret ballot. This will represent a major change in the way private duty and Medicaid personal care providers do business in the future.

Paid Sick and Safe Leave

• Effective date will likely be July 1, 2027.
• Expands legal requirements that currently require one hour of paid sick leave for every 30 hours worked for home health workers to cover all employees of private employers and state and local governments.
• Employees will begin accruing sick leave at the time of hire and employers may elect to front load an employee’s annual sick and safe leave.
• Employers must permit employees to carry over at least 40 hours of accrued but unused sick and safe leave to the following year.
• Employers are not required to pay out accrued but unused sick and safe leave at termination.

Workplace Menopause and Perimenopause Protections

• The Virginia Human Rights Act (“VHRA”) would be expanded to include menopause and perimenopause as protected characteristics, prohibiting employer discrimination and requiring reasonable accommodations for known limitations unless doing so would impose an undue hardship.

Employers should begin budgeting for potential increased labor costs, reviewing non-compete agreements and severance practices, and evaluating leave policies for compliance with anticipated new requirements. Proactive monitoring and preparation will help employers ensure compliance, minimize risk, and maintain a competitive edge in this evolving regulatory environment.

OSHA added 22 new industries to its list of industries targeted for random inspections, including:

• Manufacturing of metalworking machinery, electrical equipment, furniture, steel, plastic, clay, cement, and certain agricultural products
• General freight trucking
• Electric power generation, transmission, and distribution
• Telecommunications carriers
• Department stores
• Employment services

In the meantime, Virginia is moving to join eight states (California, Kentucky, Maryland, Michigan, Minnesota, Nevada, Oregon, and Washington) with state-level heat illness standards. Legislation directs the Virginia Safety and Health Codes Board to enact a standard to govern workplace indoor and outdoor heat exposure by May 1, 2028. The bill directs the Board to require employers to develop a standard that follows more prescriptive models with heat illness prevention plans.

Arizona, Georgia, Illinois, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, and Rhode Island are proposing heat illness standards as well. Illinois, for example, is considering the Workplace Extreme Temperature Safety Act, which would direct the state to adopt a formal heat (and cold) illness standard. No such Illinois-specific regulation is currently in effect. New Mexico initiated formal rulemaking through its Occupational Health and Safety Bureau to adopt a comprehensive heat illness prevention rule — with requirements such as written plans, exposure assessments, and training — but the standard is not yet finalized or in effect.

 Please do not hesitate to contact us with questions at 423-764-4127 or at sesco@sescomgt.com

• The U.S. Bureau of Labor Statistics (BLS) has reported that real average hourly earnings for all employees decreased 0.6 percent from February 2026 to March 2026. This result stems from an increase of 0.2 percent in average hourly earnings combined with an increase of 0.9 percent in the Consumer Price Index (CPI).
• Real average weekly earnings decreased 0.9 percent over the month due to the change in real average hourly earnings combined with a decrease of 0.3 percent in the average workweek.
• From March 2025 to March 2026, real average hourly earnings increased 0.3 percent.

Paying an Employee a Salary Does Not Automatically Mean “No Overtime”

• Paying an employee a salary does not automatically eliminate the requirement to pay the employee overtime. Too often, we hear that, “the employee is paid a salary, so overtime doesn’t apply.”
• Under the Fair Labor Standards Act, for the executive, administrative, or professional exemptions from the requirement to pay overtime to an employee to apply, an employee must satisfy the following three requirements: (1) the employee must be paid on a salary basis, meaning a fixed, predetermined amount that is not reduced because of variations in the quality or quantity of the employee’s work (the “salary basis test”); (2) the employee must meet the minimum salary threshold of at least $684 per week (the “salary test”); and (3) the employee’s actual job must meet the requirements of the applicable exemption (the “duties test”).
• Each exemption sets forth a set of “duties” that must be met for the particular exemption to apply. When considering the applicable duties test, the most crucial step is evaluating the employee’s actual job duties as performed in practice. Job titles and job descriptions do not determine if an employee is eligible for overtime. Additionally, state wage and hour laws may impose different or more stringent requirements, including higher salary thresholds or narrower duties tests, which must also be satisfied. In short, if an employee’s day-to-day work does not align with the duties test for the exemption being applied, the employee must be treated as an overtime eligible employee even if they are paid a salary.

NLRB Rules in Favor of Hospital That Discharged Employee for HIPAA Violations During Union Campaign

• The National Labor Relations Board (“NLRB” or “Board”) has held that a hospital lawfully discharged a radiology technician because the employer demonstrated that it would have terminated the employee even absent her protected union activity.
• Importantly, the Board emphasized that the investigation was triggered by a manager who had no knowledge of the employee’s union activity and no apparent motivation to fabricate a complaint. Further, the hospital’s audit corroborated the complaint because it showed that the employee had, in fact, accessed the patient’s electronic file, including ICU records, and that this was outside the scope of a radiology technician’s typical duties.
• Also worth noting is that the Board found the employer acted in accordance with its disciplinary practices and procedures. The employer was able to establish that it had terminated other employees for comparable HIPAA violations.

If you are not a retainer client, contact us to learn about our services by calling 423-764-4127.

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For more information or registration, contact tonya@sescomgt.com

]]> https://www.sescomgt.com/sescos-weekly-update-4-16-2026/feed/ 0 https://www.sescomgt.com/breaking-legislation-in-virginia-public-employees-and-home-care-workers-can-now-unionize/ https://www.sescomgt.com/breaking-legislation-in-virginia-public-employees-and-home-care-workers-can-now-unionize/#respond Tue, 24 Mar 2026 19:59:33 +0000 https://www.sescomgt.com/?p=3548 For the first time in history, public employees (including employees of the state and localities, teachers, firefighters, etc.) and home care workers have the right to unionize and collectively bargain. It appears the legislation will also apply to employees of political subdivisions, such as Community Service Boards (CSBs) and Housing Authorities.

• The legislation builds on a 2020 law that lifted Virginia’s blanket ban on public sector collective bargaining by allowing workers to collectively bargain in localities that allowed for such in their regulations or voted to allow.
• The legislation creates the Public Employee Relations Board (PERB). The PERB will determine appropriate bargaining units and provide for certification and decertification elections for exclusive bargaining representatives of state employees and local government employees. The bill requires public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment.
• The legislation also establishes the Virginia Home Care Authority (VCCA). The VCCA will serve as the public employer of individual providers for purposes of collective bargaining. The legislation repeals a provision that declares that in any procedure providing for the designation, selection, or authorization of a labor organization to represent employees the right of an individual employee to vote by secret ballot. This will represent a major change in the way private duty and Medicaid personal care providers do business in the future.

SESCO will be monitoring closely what Governor Spanberger does to include the passage of a budget that funds the legislation.

SESCO’s 80-year history includes labor relations services including leadership training, union campaigns (98%-win rate), conducting vulnerability audits including employee satisfaction surveys, and conducting labor negotiations. SESCO is the oldest consulting firm in America today who literally wrote the book on labor relations. There isn’t another firm in America who has the experience as the SESCO team which includes consultants and Labor Attorneys. Contact SESCO to discuss our professional services

To ensure that you are receiving the most up to date information, please subscribe to SESCO News Blasts.

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• Missouri Coalition Against Domestic and Sexual Violence (MOCADSV)
• National Funeral Directors Association (NFDA)
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• Paar, Melis and Associates (PMA)
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• Shop Fix Academy
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• Technology & Manufacturing Association (TMA)
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• Time & Pay
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• Virginia Association for Home Care and Hospice (VAHC)
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• Virginia Automotive Association (VAA)
• Virginia Community Healthcare Association (VCHA)
• Virginia Network of Private Providers, Inc. (VNPP)

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Ensure all Policies and Procedures and/or Employee Handbooks are compliant to Federal and State employment regulations as well as effective communication tools. As the cornerstone of the employer-employee relationship, the Employee Handbook above all HR systems must be compliant and effective.

Federal and State Posters – Members can purchase a federal and state law poster kit.

Reduced Project Fees – You will receive reduced fees (10%) on requested project work. The following is a sample listing of SESCO services that are available on a per diem or quoted fee basis for VNPP members:

• Applicant Screening — Workplace Reference Checks/Background Checks       
• EEOC Investigations/Representation
• Employee Satisfaction Surveys
• Compensation Systems
• Employee Coaching/Counseling
• Employee Discipline Programs
• FMLA (Family and Medical Leave Act) Compliance Services
• Federal Wage-Hour Investigations/Representation
• Handbook Development
• Personnel Forms and Folders
• Job Descriptions/Job Evaluation
• Management Development Seminars and Workshops
• Harassment Awareness Training/Investigations
• Executive Recruitment
• Team Development/Conflict Resolution
• Union Vulnerability Audits/Union Campaigns and Contract Negotiations
• Wage-Benefit Surveys
• Employment Law Audits

In 1941, Joseph W. R. Lawson, Sr. was employed by the U.S. Department of Labor, Federal Wage-Hour and Public Contracts Division.  His assigned office for initial training as a Federal Wage-Hour Compliance Officer was Richmond, Virginia.  This was also the office for his immediate manager and the Regional Director of the Federal Wage-Hour Division in the 1940’s.

He studied and trained as a Federal Wage-Hour Compliance Officer to investigate and enforce the Fair Labor Standards Act of 1938.  The law applied to those employers “engaged in interstate commerce” or “in the production of goods for interstate commerce.”  The primary provisions of this new federal labor legislation was to establish a minimum wage, overtime premium pay requirements, exemption tests for salaried personnel, compensable work time regulations, and child labor restrictions in business and industry.   The first minimum wage passed was $.25 an hour with time and one-half premium pay over 40 hours in a workweek.

Compliance Officer Joseph W. R. Lawson, Sr. resigned his position with the U. S. Department of Labor, Federal Wage-Hour and Public Contract Division, on February 1, 1945, after four years of service.  It was apparent to Lawson, Sr. that the federal government was not the arena for individuals like himself who were dedicated and committed to success, professional growth, and competency in this new technical frontier of federal law that regulated wages, salaries, hours of work, certain employee benefits, and discretionary and non-discretionary bonuses.

Another reason he resigned from federal government service was based on a suggestion from a federal judge in Welch, West Virginia, who had ruled on several of Lawson, Sr.’s cases.  The judge suggested that Lawson, Sr. should consider specializing in this new law and its many provisions and provide employers with the knowledge and understanding necessary to comply with the regulations.

His desire to establish his own firm, a Federal Wage-Hour and Labor Relations Consulting Practice, became a reality on February 1, 1945.  Not only had he become a specialist in the Federal Wage-Hour Law, but he was also one of the first Labor Relations Consultants specializing in union avoidance, labor negotiations, strike settlements, and arbitration services.  This was especially significant since following the end of the Second World War in 1945; unions were once again free to begin unionization activities and were no longer restricted to federal wage and price freezes that had been established by Congress under the Wage Stabilization Board during the war years.

The initial client base for the new firm of J.W. Lawson & Employees was the same employers that Lawson, Sr. had investigated as a Compliance Officer.  Because these employers knew him from previous investigations and he was familiar with the employers and their previous problems with compliance, he was able to quickly identify and assess their consulting needs and make recommendations that would enable them to meet the compliance standards of the Fair Labor Standards Act as amended.

The first “retainer agreement” was primarily focused on complying with the Fair Labor Standards Act and all its provisions.  In addition, he provided clients with recommended personnel policies, procedures, and personnel forms to document compliance with the new federal recordkeeping requirements.   These requirements contained the basic twelve criteria for time recording, time sheets, timecards, payroll records, job descriptions to prove compliance with the exempt salary requirements, and proof of minimum age to avoid child labor violations.

Our founder’s goal was to establish an operating income base that would cover his salary needs for himself and his family of three children (later to become six), a part time secretary, and office rent.   Lawson, Sr.’s first office was located at 1605 North Walker Street, Princeton, West Virginia.   Retainer fees were quite small, ranging from $15 to $40 per month, averaging $25.   He did not charge any per diem fees or travel expenses and would provide personnel forms to clients at no cost.

On-site Federal Wage-Hour Accounting Audits were performed by Lawson, Sr. with every retainer client semi-annually.  Also, the retainer provided for his assistance in preparing for and defending on-site investigations for alleged violations.

Later, J.W. Lawson, Sr. found it necessary to employ other individuals as Management Consultants in the field of Federal Wage Hour Compliance, Personnel and Employee Relations, and Labor Relations Services.   However, until 1961, the professional staff of the firm averaged no more than four including himself, a secretary who did all the typing and secretarial work in Princeton, West Virginia and later Bristol, Virginia when the Lawson family decided to move from Princeton to Bristol.    The move was due to the very large client base that Lawson, Sr. had established at the state line between Bristol, Tennessee and Bristol, Virginia that were “engaged in interstate commerce.”

The first office in Bristol, Virginia was located on Lee Highway in a room attached to the Lawson home.  This location is now a Shoney’s Restaurant.  The second office was in three separate rooms built behind their home at 809 Euclid Avenue.   Because of growth and expansion of the professional and support staff, he purchased the property at the corner of 505 Seventh Street and Cherry Street in 1963 and remodeled the Civil War Home of Dr. John Ensor.  The Corporate Office of SESCO Management Consultants was officially established at this location in 1964. There were six employees on the professional staff and two secretarial/ accounting support staff.

The SESCO compliance services were specialized to each industry represented by the client base.  J. W.  Lawson, Sr. had developed a very extensive, detailed “Compliance Audit Checklist” for each industry following his investigation experience as a Federal Compliance Officer in the 1940’s.  Checklists were developed for each industry with unique compliance situations and unique vulnerability areas.  There were special compliance audit checklists for the coal mining, lumber and saw mills, common carriers engaged in interstate commerce, soft drink bottling and distribution, and construction industries.  These compliance audit checklists allowed the SESCO Consultant to become knowledgeable and proficient in conducting audits for a growing diverse client base.

During the first 10 years of SESCO’s history, another major federal labor law was amended in 1947 known as the Taft-Hartley Act, which was an amendment to the National Labor Relations Act of 1935.   The amendment in 1947 established for the first time the right of employees to “refrain from union activity” and gave management, for the first time, the “right of free speech.”  This new federal labor law provided J. W. Lawson, Sr. and his labor relations staff with new demand for labor relations consulting services for non-union employers who wanted to know how to effectively prevent unionization, how to communicate with employees, how to train managers on the disadvantages of unionization, and how to remain union-free in a business or industry.   For many years, SESCO’s reputation in the southeastern states was established as the very best compliance consulting firm for federal and state employment regulations, minimum wage laws, child labor laws, and other state employment guidelines and restrictions on employers.

The Fair Labor Standards Act has been amended four times by Congress since it was passed in 1938.   With each amendment, more and more employers were covered by the Act, which presented new opportunities to market SESCO’s Federal Wage-Hour Accounting Compliance and Personnel Management Compliance Audits for new client retainer services.

In 1964, Congress passed the Civil Rights Act of 1964, creating an entirely new, complex federal employment law that covered many employers for the first time.   This new federal employment law prohibiting discrimination in employment, compensation, benefits, and working conditions provided SESCO with a new compliance service to provide to present and future clients.  President Joseph W. R. Lawson, Sr. announced to all clients that the new compliance service would be provided to them under their current retainer agreements as part of the semi-annual compliance audits.  Moreover, when any SESCO client was investigated or received an allegation of discrimination for any of the prohibited reasons, SESCO would be available to assist the client with their defense.

One of SESCO’s first management books was How To Comply with the Civil Rights Act of 1964.   This compliance manual was published and distributed by Dartnell in 1965.  Dartnell also requested that the SESCO professional staff conduct Dartnell management seminars in four major cities to provide employers with the information necessary to understand and comply with the Act.  Seminars were conducted by SESCO staff, and the firm quickly gained national recognition as a compliance specialist for the Civil Rights Act of 1964.

Thus, the firm added another new federal compliance audit service and subsequently expanded the audits to include the development of Affirmative Action Plans and the Affirmative Action Progress Report for those clients who became covered under Executive Order 11246 during the Johnson Administration.

As expected, each time Congress or state legislatures pass new federal or state employment laws, new opportunities are created for SESCO to provide required compliance systems for retainer and per diem clients.

The history and development of SESCO client compliance services continued with the passage of the Americans with Disabilities Act (ADA), the new Civil Rights Act of 1991, and the Family and Medical Leave Act of 1993 (FMLA).   To help establish and continue the professional competency and image of the firm with present and future clients, SESCO has continued authorship of specialized management books and management compliance manuals published by The Dartnell Corporation, Chicago and AMACOM Books, New York.   These have included the following published books:

• How to Meet the Challenge of the Union Organizer [Dartnell]
• How to Control Absenteeism, Improve Attendance and Employee Morale [Dartnell]
• Employer’s Guide: Understanding and Complying with the Americans With Disabilities Act [Dartnell]
• How to Develop a Personnel Policy Manual [AMACOM Books]
• How to Develop an Employee Handbook [AMACOM Books]

Since its humble beginnings, SESCO Management Consultants has grown as a professional firm, staying abreast with the latest trends in human resource and employee relations management.  In addition to ensuring quality consulting to its clients across the country, the firm has also been strongly committed to surrounding itself with individuals that apply the beliefs and philosophies that the firm holds dear to its heart in the same degree and skill of its founder.

In 1995, the firm underwent a major restructuring, and a new management committee was formed.  The firm embarked on a completely new mission entitled “SESCO 21,” which was the brainchild of long time friend and SESCO Senior Vice President, David V. Tudor.  The classic book for entrepreneurs, “The E-Myth,” was the basis for the restructuring.

Aggressively pursued, SESCO 21 included an ambitious plan of reducing all of SESCO’s services to systems for ease of training and developing new consultants as well as ensuring a consistent and quality service.

It was also decided that the size and profitability of the firm was no longer limited.  To assist the firm to achieve growth, the University of Tennessee Office for Customer Responsiveness Studies was contracted to conduct a thorough management and marketing assessment of SESCO Management Consultants — the first time an assessment of this magnitude had ever been conducted for a consulting firm by the University of Tennessee.  Subsequent to the analysis, the team from the University of Tennessee was extremely excited about the potential of SESCO Management Consultants and subsequently offered specific recommendations with corresponding timetables.  SESCO 21 remains the core and backbone of the firm’s professional and administrative services and will guide the firm into the future.

In 2004, the firm, again, achieved a historical mark when it moved into its third (3^rd) generation of family ownership.  Andrea Lawson Ford, COO, and husband, Bill Ford, purchased the firm.  The basic principles and core beliefs of J.W.R. Lawson, Sr. remain at the center of all management and professional consulting efforts.