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Panel reports local-option bill to protect building-service workers when contracts or ownership change

2174443 · January 30, 2025
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Summary

HB 2,559, a local-option bill introduced by Delegate Lopez, would permit localities to enact displaced-worker protections for building-service employees when a service contract changes hands or a building is sold; the subcommittee reported the substitute 5–2 after debate between labor advocates and building-owner groups.

Delegate Lopez presented House Bill 2,559 to the House Labor and Commerce Subcommittee on Feb. 12, 2025, asking the panel to approve a local-option measure that would let localities require protections for building-service workers when their contract is transferred or a building changes ownership.

Lopez said the bill mirrors a prior local-option measure (HB 951 in a prior session) and is limited to large facilities—examples listed in the bill include multifamily apartment buildings with more than 50 units; office buildings or complexes meeting specified square-foot thresholds; elementary and secondary schools and institutions of higher education; cultural centers such as museums and arenas; industrial sites and pharmaceutical labs; airports and train stations; and warehouses and distribution centers.

Under the bill, a locality that enacts a displaced-worker ordinance could require notice to affected workers, transfer of employee contact information to the successor employer, a 90‑day transition period during which the successor employer retains existing employees (with enumerated exceptions), and written performance evaluations. The bill would also allow localities to enforce violations through fines or civil actions.

Supporters (SEIU, Virginia Interfaith Center for Public Policy, and other labor and faith groups) said abrupt job loss when contracts switch harms workers and families and can increase pressure on public assistance programs. Opponents (Apartment and Office Building Association and Virginia Apartment Management Association) said the measure could micromanage hiring decisions, impose costs on financially stressed buildings and complicate contracts.

The subcommittee considered and approved a substitute clarifying definitions and added a definition for “service contract.” After debate, the subcommittee voted 5–2 to report the bill with the substitute; committee members discussed a motion to refer the bill to Appropriations during the process and the record includes both the motion and the final reported-with-substitute result.