Virginia Governor Vetoes Public-Sector Collective Bargaining Rights Bill

Quick Hits

• Virginia Governor Spanberger vetoed SB 378/HB 1263 on May 14, 2026, blocking legislation that would have extended collective bargaining rights to approximately 500,000 public employees across the Commonwealth.
• The vetoed bill would have repealed Virginia’s collective bargaining ban, established a Public Employee Relations Board, required mandatory good-faith bargaining over wages, hours, and working conditions, and imposed binding arbitration upon impasse.
• Virginia’s existing framework, which allows individual localities to opt in to collective bargaining for certain municipal employees, remains in effect while the governor has stated she will continue working with the General Assembly on a revised approach.

The bill passed both chambers of the Virginia General Assembly, after which the governor proposed amendments. After the General Assembly rejected the governor’s proposed amendments, the governor bucked speculation that she would sign the bill and ultimately vetoed the measure, stating she supported public-sector collective bargaining, but believed additional amendments were needed.

Overview of SB 378/HB 1263

The now-rejected bill would have repealed Virginia’s collective bargaining ban and significantly expanded the Commonwealth’s approach to public sector labor relations. Currently, Virginia law permits individual localities to opt in to collective bargaining for certain municipal employees. The bill would have overturned this framework and imposed mandatory collective bargaining for public employers. Key provisions included:

• the establishment of a five-member Public Employee Relations Board (PERB) with authority to certify bargaining units, conduct representation elections, and adjudicate unfair labor practice claims;
• mandatory good-faith bargaining, requiring public employees and certified representatives to negotiate over wages, hours, and working conditions, with binding arbitration if the parties reach an impasse;
• the creation of the Virginia Home Care Council, a new entity to serve as the public employer for individual care providers, solely for the purposes of collective bargaining, while preserving participants’ authority to hire, fire, and direct their providers;
• coverage and rights extended to state employees, local government employees, K–12 educators, and higher education service employees, with exclusions for elected officials, confidential employees, temporary workers, and the judicial branch; and
• mandatory binding interest arbitration upon impasse.

The Governor’s Proposed Amendments

Governor Spanberger proposed amendments on April 13, 2026, that, among other things, would have:

• delayed implementation for local governments from July 1, 2028, until January 1, 2030 (when the governor’s four-year term will expire);
• provided additional flexibility for public employers to account for existing budget timelines;
• narrowed the scope of bargaining from requiring bargaining over terms and conditions of employment to permitting bargaining over those terms and conditions; and
• transformed mandatory, binding interest arbitration upon impasse into a non-binding process.

Current Status and Outlook

Governor Spanberger has stated she remains committed to working with the General Assembly and stakeholders to develop a workable public-sector collective bargaining system. However, that is yet to be seen. As of now, Virginia’s current framework, which vests localities with the discretion to opt in to collective bargaining for certain employees, remains in place.

Ogletree Deakins’ Richmond office will continue to monitor developments and will publish updates on the Traditional Labor Relations and Virginia blogs as additional information becomes available.

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