Between June and July, residents of Maryland and Virginia will see new legislation taking effect across various sectors, which could have a significant impact on businesses, communities, and people traveling between all jurisdictions in the DMV. Here is a look at some of these laws that could impact business owners, regional professionals, and growing communities in the region.
(Washington D.C. laws typically take effect in January. The Board of Trade will continue to proactively monitor the legislation’s impact on business communities in Greater Washington.)
Virginia:
As we head into the summer months, several important new laws will take effect across Virginia, impacting everything from workforce agreements to road safety. These changes reflect the state’s ongoing efforts to protect employees, enhance public safety, and promote fairness in the workplace. These laws discussed below in Virginia take effect on July 1.
Non-Compete Agreements: Expanded Worker Protections
Virginia will prohibit employers from enforcing non-compete clauses with non-exempt employees, those eligible for overtime pay under federal law. This shift is designed to give workers greater freedom to change jobs and encourage a more dynamic labor market. Employers may need to rethink retention strategies in a more mobile and competitive labor market.
Sexual Assault Employer Accountability Act
Another significant change focuses on employer accountability. The Sexual Assault Employer Accountability Act allows victims to hold employers civilly liable for misconduct committed by their employees, especially when vulnerable individuals—such as patients or residents in long-term care—are involved. This law underscores the state’s commitment to protecting those who may be at greater risk and ensuring organizations maintain safe environments. Employers must ensure robust safeguards and oversight in their workplace environments.
Christopher King Backseat Law: Seatbelt Requirement for All Adults
On the road safety front, Virginia is expanding its seatbelt laws to require all adults riding in the backseat to buckle up. Beginning July 1, those who fail to wear a seatbelt in the backseat may face a $25 fine. This measure, known as the Christopher King Backseat Law, is a vital step toward reducing injuries and fatalities on Virginia’s roads. Companies with rideshare programs, shuttle services, or delivery fleets must ensure drivers and passengers follow this law. Businesses may need to incorporate road safety reminders into onboarding or safety briefings. Failure to comply could result in citations that reflect poorly on a company’s safety culture.
Criminal Records Sealing: Supporting Second Chances
The state is advancing criminal justice reform by allowing individuals to petition for the sealing of certain criminal convictions. This change will open doors for many Virginians seeking new employment or housing opportunities, supporting reintegration and second chances. Employers may have less visibility into candidates’ full criminal history, making risk assessment more difficult. Also, employers must ensure hiring decisions don’t discriminate against applicants with sealed records, while still complying with other regulatory requirements.
Maryland:
As of June 1, several new laws are in effect in Maryland that could have a direct impact on businesses—particularly in sectors like energy, tourism, transportation, legal services, and hospitality. This includes new tax changes and rate changes for certain people and businesses.
Maryland Tax Changes
Maryland’s updated budget includes a 3% sales tax on certain tech services—such as data storage—targeted at IT companies. Notably, this tax does not apply to mobile phone services.
The budget also introduces new income tax brackets for top earners: individuals making $500,000 annually will face a 6.25% rate, while those earning $1 million or more will be taxed at 6.5%.
Additionally, a 2% capital gains tax now applies to individuals with incomes over $350,000, and tax rates have increased on both cannabis sales and sports betting.
Next Generation Energy Act
This legislation includes providing two $40 energy rebates to consumers in Fisical Year 2026 and also ends public subsidies for waste-to-energy incinerators, signaling a shift toward more sustainable energy sources. Utilities, energy companies, and large-scale energy consumers should prepare for both administrative burdens around rebates and longer-term transitions in energy policy. This law reinforces Maryland’s move toward greener infrastructure. Businesses with sustainability goals or those operating in the clean energy space may find new opportunities, but traditional energy providers may see changes in incentive structures.
Speed Camera Expansion on I-83
Baltimore City is authorized to double the number of speed cameras on the Jones Falls Expressway (I-83), increasing from 2 to 4. This may seem minor, but for logistics companies or anyone relying on that corridor, increased enforcement can mean higher ticket volumes, stricter route planning, and greater need for driver training. It’s a reminder to prioritize traffic law compliance, especially for regional operations.
Portable Toilet Regulations for Agritourism and Craft Beverage Venues
Wineries, breweries, farms, and other agritourism businesses must now provide portable toilets equipped with soap, clean water, and drying tools. For businesses hosting events, tastings, or public visits, this could mean new capital and operating costs for sanitation equipment, maintenance, and inspections. It also represents Maryland’s continued focus on aligning agritourism with public health standards. If you’re expanding or investing in on-site visitor experiences, this should be part of your planning and permitting strategy.
Abuse Lawsuit Settlement Caps
This law sets financial limits on the amount of damages that can be awarded in abuse-related lawsuits. This is a cap of $400,000 for claims against public institutions and a cap of $700,000 for claims against private entities. Caps on attorney fees will also be set at 20-25%. Organizations, especially schools, nonprofits, religious institutions, and private employers, should take note. These limits may reduce exposure to catastrophic settlements, but they also emphasize the importance of robust internal safeguards, incident reporting mechanisms, and legal risk management practices. While this could offer more predictability in litigation, it won’t replace the need for due diligence and compliance.
