NFIB Virginia Director Julia Hammond writes that small businesses owners helped stop or delay several bad bills in this year’s session of the General Assembly, but several big challenges remain.

Virginia’s small businesses came out of this year’s General Assembly session in decent shape — not great, not terrible, but OK.

That may not sound exciting, but in a year filled with costly new taxes and mandates, “OK” counts as a win.

Small business owners helped stop or delay several measures that would have made it harder to operate in Virginia. Still, a few expensive bills made it to the governor’s desk.

One of the biggest early victories: lawmakers dropped plans to raise taxes and extend the sales tax to more services. Supporters called it a “luxury tax,” but that label didn’t fit.

Car repairs, haircuts, and online backup aren’t luxuries. They’re everyday services that people depend on, and small local businesses provide them in every corner of the state.

At a time when elected officials say they want to make life more affordable — and with Virginia sitting on a $2.7 billion budget surplus — taxing these services would have sent the wrong message and squeezed businesses already working on thin margins.

Lawmakers say they’ll revisit the idea later this year or next session. If they do, they should think carefully. Policies that look simple on paper can have real consequences for the people who create jobs and serve their communities.

Small businesses also helped fend off efforts to repeal Virginia’s right-to-work law. The law is part of what makes the state attractive to growing and relocating businesses. It also protects workers’ right to decide whether to join a union.

Not every outcome was positive, though.

The General Assembly passed a mandatory paid leave bill and legislation establishing mandatory paid medical leave tax. There are issues with both bills that we are trying to work out with the Governor’s office, but it’s clear that employers will be burdened without another costly mandate.

Small business owners understand the value of supporting their employees, and many already offer paid leave when they can. But a one-size-fits-all requirement creates real challenges for businesses with just a few workers. When someone takes paid leave, the work still has to get done.

Owners may need to hire temporary help or ask others to pick up extra shifts, effectively paying twice for the same work. That’s a cost many small businesses can’t absorb.

This wasn’t the only costly piece of legislation to make it through the General Assembly.

House Bill 238 expands employer liability for wage violations, weakens at-will employment, and increases the cost of doing business in Virginia. Wage and hour laws are already complex and heavily litigated. Current law strikes a careful balance between protecting workers and providing clear rules for employers. This bill risks upsetting that balance, leading to higher costs, more litigation, and greater uncertainty for businesses across the Commonwealth.

Lawmakers also passed Senate Bill 229 and House Bill 449, legislation that would allow class-action lawsuits in Virginia courts. While presented as a reform, these measures would significantly change the state’s civil justice system. As written, they expose businesses, nonprofits, and other organizations to broader and less predictable legal risks—adding another layer of cost and uncertainty.

On balance, though, Virginia’s small businesses held their ground this session.

Over the years, the Commonwealth has built a reputation as a good place to own, operate, and grow a small business. But proposals to raise taxes or weaken long-standing policies like right-to-work risk chipping away at that foundation.

Our work is far from over, but, all things considered, small business owners see “OK” as a win.