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Northam will require state employees to get vaccinated

State employees will be required to show proof of a COVID-19 vaccine by Sept. 1 or be tested weekly, Virginia Gov. Ralph Northam announced Thursday, as the delta variant has led to rising cases.

“Today, I’m taking an important step to protect employees,” Northam said at a news conference, adding that the measure is also “to keep the people that we serve safe.” Recalling his time as an Army surgeon during the first Gulf War, Northam said he has intubated patients, much as frontline health care workers do today for COVID patients with the most severe cases, and that vaccines can prevent such serious cases in most people, even with the highly contagious delta variant.

The state employs about 122,000 people. About 72% or 73% of employees have been vaccinated, state Secretary of Administration Grindly Johnson said Thursday. She added that state employees will be required to sign a form noting their vaccination status and that there will be exemptions for religious and ADA reasons, with details to come.

If employees choose not to get tested, “obviously we’ll take the next measure,” Northam said.

The state’s Department of Human Resource Management is expected to issue policies, procedures and guidance no later than Aug. 15.

The written directive specifies that the mandate applies to the offices of the governor and lieutenant governor, the secretary of the commonwealth, executive branch agencies, institutions of higher education and others. It does not apply to state contractors.

“In order to protect the safety of Virginia’s workforce and the people we serve, it is necessary to require state employees to be vaccinated and to encourage other employers to do the same,” according to the written directive.

On Wednesday, the city of Richmond became the first Virginia locality to mandate vaccination of its employees, including those who telework, while President Joe Biden is also requiring federal employees to be vaccinated. Health systems, universities and businesses also have put in place requirements in recent weeks as rates of infection have risen among unvaccinated people.

In some places in Virginia, workers and have chafed at their employers’ vaccine requirements, including at various Valley Health hospitals in the Shenandoah Valley, where hundreds of employees have protested. Valley Health announced its employees must get vaccinated by Nov. 1 or face suspension or termination. At Virginia Tech, where students are required to be vaccinated for the fall semester, whether they are attending in person or online, some have signed a petition protesting the order.

Northam’s directive is based on Biden’s mandate, the governor’s office said in a news release. Other states, including North Carolina, California and New York, have put in place vaccination requirements for at least some of their state employees, and Maryland has required that employees working in “congregate settings” must get their shots.

According to the U.S. Equal Employment Opportunity Commission, employers can require workers to be vaccinated against COVID as long as they do not violate the Americans with Disabilities and Civil Rights acts. In many states, lawmakers have submitted bills to ban such mandates, but so far, Virginia has passed no such legislation, which would likely fail in the Democratic-controlled state legislature.

About 13,000 people a day in Virginia are getting a shot now, Northam said, and the Virginia Department of Health reported Thursday that 4.6 million people in Virginia are fully vaccinated, reflecting 54.3% of the total population, while 60.9% has received at least one dose.

When asked if Northam would mandate the general public be vaccinated, he said “I am in charge of 120,000…that is who I have control over.”

“I encourage businesses across the commonwealth to join that lead,” Northam said. “The time for waiting is over.”

In February, the General Assembly passed a law requiring school divisions to provide in-person learning. The law requires that schools offer in-person instruction five days a week and follow Centers for Disease Control & Prevention mitigation strategies, Northam said.

“The CDC guidance is that people in schools need to be wearing masks,” he said. If school divisions choose not to follow the law, “they should have a frank discussion with their legal counsel.”

In terms of vaccinations, Northam said, “We still don’t have FDA authorization to vaccinate children younger than 12, although I am hopeful that this will come this fall just in the next few weeks.”

Richmond mandates vaccinations for city employees

Richmond Mayor Levar Stoney announced Wednesday that all city employees will be required to be vaccinated against COVID-19, becoming the first Virginia locality to mandate vaccination.

Fairfax County has taken steps in recent weeks toward a vaccination mandate for its 12,000 employees, but the county executive must make the final decision. Gov. Ralph Northam has not made an announcement about state employees being required to be vaccinated, but President Joe Biden has announced a mandate for federal employees. Many universities and colleges as well as individual companies and workplaces have instituted vaccination requirements, and the issue has gained urgency in recent weeks as the Delta variant of COVID has led to higher infection, hospitalization and death rates among the unvaccinated.

Richmond city employees, including those who telework, must be fully vaccinated by Oct. 1, according to the mayor’s office, and they will be asked to prove their vaccination status through the Virginia Department of Health. Medical and religious exemptions are allowed, but religious exemptions must be notarized and medical exemptions must be signed by a licensed medical provider. Anyone who does not comply will be subject to disciplinary action in accordance with city Department of Human Resources guidelines.

“We take this step not only to ensure the health and safety of our employees and their families, but also to safeguard the comfort and well-being of residents, customers, visitors and the public at large,” said Mayor Stoney. “The vaccine is our greatest tool to save lives and truly beat this pandemic.”

Northam proposes $353M for small biz, tourism relief

Ahead of the General Assembly’s August special session, Gov. Ralph Northam said Monday he wants to spend $353 million of Virginia’s federal relief funding on small business recovery and assisting the tourism industry. Virginia received $4.3 billion in federal funds through the $1.9 trillion American Rescue Plan passed in March.

The Democratic-controlled General Assembly will reconvene on Aug. 2 for a special session focused on spending the federal windfall, including fully funding the Northam administration’s Rebuild VA small business recovery program and allocating money for the state’s unemployment trust fund, which ran out of money last October due to record-breaking unemployment claims and was reliant on federal funding.

On Monday, joined by Democratic state lawmakers in Virginia Beach, Northam proposed allocating $250 million for the Rebuild VA economic recovery fund, $50 million for the Virginia Tourism Corp. and $53 million for other small businesses through programs like the Industrial Revitalization Fund and Virginia Main Street program.

“Virginia is roaring back stronger than we could have imagined one year ago, but small businesses are the backbone of our economy, and they need additional support to get back on their feet,” Northam said in a statement. “With the American Rescue Plan, we have a once-in-a-generation opportunity to rebuild from the impacts of the pandemic, revitalize our communities and invest in our shared prosperity.”

Since launching in July 2020, the Rebuild VA economic recovery fund has awarded $120 million in federal CARES Act funding to more than 3,000 small businesses and nonprofits, according to the governor’s office. Northam and the General Assembly agreed to fund Rebuild VA with an additional $25 million in March to fulfill many of the pending applications.

“Rebuild VA has been a lifeline of support for countless Virginia businesses,” said state Sen. Janet Howell, chair of the Senate Finance and Appropriations Committee. “With so many businesses still in the queue for funding, there is no question that the General Assembly needs to approve the full amount to provide support to these businesses, and to allow new applications to be filed.”

From March 2020 to April 2021, Virginia lost an estimated $14.5 billion in total tourism spending, according to the governor. With the proposed $50 million, the Virginia Tourism Corp. would create the Virginia Tourism Recovery Program to deliver funding to 114 destination marketing organizations statewide. VTC would also boost its sports and meeting marketing programs and extend its broadcast and digital marketing into media markets in Charlotte, North Carolina, Pittsburgh, Boston and Chicago. It would also expand digital advertising to an additional 29 markets east of the Mississippi River.

Eric Terry, president of the Virginia Restaurant Lodging and Travel Association, praised Northam’s move in a statement Monday. “We are pleased that Gov. Northam has recognized the continuing crisis for Virginia’s tourism and hospitality industry and has answered our calls to assist the industry’s pandemic recovery. Given the struggles many of these businesses still face, we hope that the program will distribute funds quickly and offer flexibility to help get them back on their feet.

“Tourism and hospitality losses in Virginia have totaled $14 billion, and nearly half of the job losses caused by the pandemic statewide were in our industry. A stronger tourism and hospitality industry means a stronger Virginia, and VRLTA applauds Gov. Northam’s announcement today, which would put us on the right path to recovery.”

Del. Luke Torian, chair of the House Appropriations Committee, added in a statement that “the tourism economy has always been, and will always be, a shining light here in the commonwealth. From the Blue Ridge Mountains to the Chesapeake Bay, Virginia is the destination that countless people dream to visit. Now that our doors are open and our lights are on, I am confident that Virginia Tourism will use this funding to reboot our tourism economy and bring people in from across the nation and beyond.”

The $53 million proposed for small businesses would also support two Virginia Department of Housing and Community Development programs. The Industrial Revitalization Fund seeks to help redevelop vacant nonresidential structures, according to its webpage. The proposed funding would also support Virginia Main Street’s Technical Assistance Grant program, which would focus on providing support for minority and immigrant communities, as well as woman- and minority-owned businesses.

House Speaker Eileen Filler-Corn, Senate Majority Leader Dick Saslaw and Delegates Kelly Convirs-Fowler, Nancy Guy and Alex Askew — all Democrats — joined the event held in Virginia Beach.

“This is another example of our work to ensure Virginia’s small businesses have the support they need,” Filler-Corn said in a statement. “As we emerge from COVID-19, these continued investments will help working families and put millions back into our quickly-recovering economy.” 

“I am grateful to Democrats in Congress for providing this critical funding,” Saslaw said in a statement. “Together, we will get this relief directly into the hands of small businesses, families, and communities across the commonwealth.”

The General Assembly will convene for a special session on Aug. 2, which would be a return to the Virginia State Capitol chambers for the first time since March 2020. Under COVID-19 mitigation measures, delegates and state senators met virtually, under tents and in larger buildings that allowed physical distancing.

Va. unemployment claims down slightly last week

Virginia saw a small decrease in initial claims for the filing week ending July 3, with 6,825 people making new jobless claims, the Virginia Employment Commission reported Thursday. Continued claims also went down, totaling 37,790 last week, down by 2,435 from the previous week.

Initial claims declined by 1,371 last week compared to the previous week, and the total was down 80% compared to the same week in 2020, VEC said. Continued claims on the same week last year were at 378,607, 90% higher than last week’s continued claims. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

According to a state official leading a review of the backlog of claims at VEC, which is under a Labor Day deadline set by a federal judge to resolve more than 90,000 outstanding cases, the agency is still responding to only a “small portion” of calls by claimants who haven’t received their benefits. Lauren Axselle is part of the Joint Legislative Audit and Review Commission team conducting a study about the VEC, with an interim report due to state lawmakers in September and a final report in November.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 373,000, an increase of 2,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,391,178 initial claims during the same week last year.

Va. new jobless claims up, while continued claims decline

Virginia’s new unemployment claims rose to 8,196 in the filing week ending June 26, but continued claims decreased, the Virginia Employment Commission reported Thursday.

Last week saw an increase of 1,291 initial jobless claims from the previous week, while continued claims totaled 40,225, a decrease of 2,653 claims from a week ago.

This time a year ago, 31,955 people filed new unemployment claims, 74.3% more than last week, while 366,714 people filed continued claims, 89% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 364,000, a decrease of 51,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,426,894 initial claims during the same week last year. Virginia saw the fifth-largest one-week increase in initial claims in the country last week, as many states reported decreases in claims.

Va. new jobless claims dropped below 7,000 last week

Virginia’s new unemployment claims fell last week, as did continued claims, the Virginia Employment Commission reported Thursday.

For the filing week ending June 19, 6,905 people filed initial jobless claims, a decrease of 944 from the previous week. Continued unemployment claims totaled 42,878 last week, down 1,915 claims from the previous week.

This time a year ago, during the early months of the COVID-19 pandemic, 25,293 people filed new unemployment claims, 72.69% more than last week, while 375,579 people filed continued claims, 89% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

On Wednesday, the VEC reported that May’s unemployment rate was at 4.5% statewide, a .2% decrease from April’s rate and below the national jobless rate of 5.8%

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail trade; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 411,000, a decrease of 7,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,447,127 initial claims during the same week last year.

Va. hotel revenues increased by 178% in May

Virginia hotel revenues for May 2021 increased by 178% compared with May 2020, according to data released Tuesday by STR Inc., a CoStar Group division that provides market data on the U.S. hospitality industry.

During the same period, rooms sold went up by 96%. The average daily rate (ADR) paid for hotel rooms rose 42% from May 2020 to $102.83, while revenue per available room (RevPAR) rose to $59.62, a 66.6% increase from May 2020. However, statewide hotel revenue still lagged behind May 2019 levels by 31%, the report states, although revenue was up by 4% in Hampton Roads.

“The hotel industry continues to recover in the commonwealth as well as in Hampton Roads,” Professor Vinod Agarwal of Old Dominion University’s Dragas Center for Economic Analysis and Policy said in a statement. “With increasing vaccinations, declining COVID-19 infections, rising consumer confidence, pent-up demand, and easing restrictions we have seen significant improvement in the performance of the hotel industry over the 2020 levels and we expect the industry to continue its recovery each month through the end of 2021.”

Nevertheless, Virginia Restaurant, Lodging & Travel Association President Eric Terry says, “While these numbers seem encouraging, there is more to this story. Comparing May 2020 revenues, at the height of the pandemic, sets an extremely low threshold. A better indicator may be to look at occupancy rates in 2019 where we had a 61% statewide average. In 2020, occupancy rates were cut in half. In some places around the state we’re still sitting at 30% occupancy rates, even with restrictions beginning to be lifted. The recovery for the industry is a long road ahead — one peak travel month does not make a recovery of an industry that lost $14 billion and 90,000 jobs last year. We’re glad to see revenues rising for our hotels, but this data should be put in the context of 2020 being the worst year in recent history for many of our members.”

Hotel revenues and rooms sold increased in Virginia’s markets during May 2021, compared with May 2020, as the pandemic shutdown continued in the commonwealth. In Northern Virginia, which has seen a slower bounce back than other regions, hotel revenue increased by 168% year-to-year in May. The Charlottesville market saw a 373% increase; 845% in Williamsburg; 235% in Virginia Beach; 168% in Norfolk/Portsmouth; 95% in Chesapeake/Suffolk; and 94% in Newport News/Hampton. The number of rooms sold also increased in May, with a 349% boost in Williamsburg; 114% in Northern Virginia; 164% in Charlottesville; and 79% in the entire Hampton Roads market.

Va. initial jobless claims rise slightly

Virginia’s new unemployment claims rose slightly last week, while continued jobless claims declined, the Virginia Employment Commission reported Thursday.

For the filing week ending June 12, 7,849 people filed initial claims, an increase of 639 from the previous week. Continued claims totaled 44,793 last week, down 5,468 claims from the previous week.

This time a year ago, during the early months of the COVID-19 pandemic, 27,186 people filed new unemployment claims, 71.1% more than last week, while 386,893 people filed continued claims, 88% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in these industries: accommodations/food service; administrative and waste services; retail trade; and health care and social assistance.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Nationwide, the advance figure for seasonally adjusted initial claims last week was 412,000, an increase of 37,000 from the previous week’s revised level, according to the U.S. Department of Labor. There were 1,457,102 initial claims during the same week last year.

State program would incentivize new workers with up to $1,000

To combat Virginia’s tight labor market, the state plans to invest $3 million in a program to provide new employees of qualifying small businesses with up to $1,000 to support their transition back into the workforce, Gov. Ralph Northam announced Friday.

The Virginia Return to Earn grant program will match up to $500 from eligible small businesses that are paying new hires at least $15 an hour and employ fewer than 100 people. The program will be funded through Virginia’s federal Workforce Innovation and Opportunity Act (WIOA) funding, and additional COVID-19 pandemic recovery funds may be allocated based on demand, the governor’s office said.

“Many Virginians who lost their jobs as a result of the COVID-19 pandemic still face a variety of barriers to returning to work like access to affordable child care, transportation and a living wage,” Northam said in a statement. “These bonuses will serve as an incentive for unemployed workers to get back into the workforce while also helping employers fill vacant jobs. The Virginia Return to Earn grant program is about empowering the true catalysts of our economic comeback — Virginia’s workers and small businesses.”

To qualify for the state’s matching fund of up to $500 per person, businesses must pay that amount directly to a new employee hired after May 31, either as a lump sum or in installments to offset ongoing costs of child care, transportation or other barriers to re-employment. Funds will be reimbursed only to businesses that pay at least $15 per hour for jobs that qualify as W-2 employment, either full time or part time.

Virginia has seen a staffing crisis this year, part of a national trend, as businesses that were shut down or at limited capacity during the pandemic are now fully reopening for businesses — or would if they had enough employees. There are a variety of reasons for the labor shortage, among them state and federal unemployment benefits extended through Sept. 4 and a lack of child care options. Businesses are offering signing and referral bonuses, as well as free meals and end-of-shift cocktails at some restaurants.

Hotels and restaurants have been hit particularly hard, notes Eric Terry, president of the Virginia Restaurant, Lodging & Travel Association, who estimates that about 56,000 hotel jobs were lost in Virginia last year, prompting some workers to move on to other career fields. Another pressure point for some employers is Virginia’s minimum wage raise from $7.25 to $9.50 per hour in May, a first step toward $12 an hour by January 2023, and the fact that Northam has set the grant program eligibility at a $15-per-hour minimum.

In response to the governor’s announcement, Terry said, “We are very disappointed that the wage level was set so far above the state minimum wage of $9.50, which was just increased last month. This will do very little to ease the labor crisis our members are feeling as the tourism and restaurant industry tries to recover.”

Va. unemployment claims continue to decline

Virginia’s number of new and continued unemployment claims dropped again last week, with 8,090 initial claims filed during the week ending May 29, a decrease of 1,753 claims from the previous week, the Virginia Employment Commission reported Thursday.

Continued claims totaled 52,228 last week, down 1,935 claims from the previous week. This time a year ago, during the early months of the COVID-19 pandemic, 31,379 people filed new unemployment claims, 74% more than last week, while 398,411 people filed continued claims, 87% more than last week. People receiving unemployment benefits through the VEC must file weekly unemployment claims in order to continue receiving benefits.

On Tuesday, the VEC started requiring unemployment benefit recipients to apply for at least two jobs a week and report details of job search activity, a requirement that was waived during the height of the pandemic.

More than half of the claimants who filed for benefits last week (and the prior four weeks) reported being in the accommodation/food service, administrative and waste services, retail trade and health care and social assistance industries, according to the VEC.

The regions of the state that have been most impacted continue to be Northern Virginia, Richmond and Hampton Roads. 

Below are the top 10 localities, listed by number of initial unemployment claims, for the week ending May 29:

  • Norfolk, 381
  • Fairfax County, 344
  • Richmond, 343
  • Virginia Beach, 257
  • Prince William County, 222
  • Newport News, 203
  • Portsmouth, 181
  • Alexandria, 168
  • Chesapeake, 164
  • Chesterfield County, 156

Nationwide, the advance figure for seasonally adjusted initial claims last week was 385,000, a decrease of 320,000 from the previous week’s revised level, according to the U.S. Department of Labor, the lowest number of initial claims since March 14, 2020, the week before the COVID pandemic prompted mass layoffs. There were 1,611,720 initial claims during the same week last year.