Panel backs local option to protect building-service workers when contracts change hands

Virginia House Subcommittee (Labor and Commerce) · January 30, 2026

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Summary

HB338 would authorize localities to adopt displaced-worker ordinances requiring notice, candidate lists and rehiring considerations when building-service contracts transfer; unions and workers provided extensive testimony and the subcommittee reported the substitute 4-2.

Chair Lopez introduced House Bill 338 as a local-option measure that would allow Virginia localities to adopt displaced-worker protections for building-service employees when service contracts change hands.

Under the substitute, local ordinances could require notice to workers, give successor contractors a list of incumbent employees for hiring consideration, provide written performance evaluations, and include local enforcement provisions such as civil fines or a private right of action. Proponents including SEIU, janitorial staff and labor federations recounted recent events where workers lost jobs after contractor changes.

Employers and the business community were represented; some employers supported amendments that added hold-harmless language and clarified definitions for covered service employees. After debate, the subcommittee reported the substitute by vote and will send the bill forward for further consideration.

The measure would give local governments an option to adopt protections but does not impose a statewide mandate.