Richmond's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Richmond, Virginia, there are 3 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Hotel Living Wage

Richmond does not impose a hotel-specific living wage. Hospitality workers receive Virginia's statewide minimum wage of $12 per hour, scheduled to rise toward $13.50 in 2025 and beyond under General Assembly law.

Key details: City living wage: Not adopted. State minimum: $12 rising to $13.50. Authority: Virginia preempts local wage. Tipped wage: Lower with tip credit.

No city living wage law applies. Failure to pay Virginia's state minimum wage exposes employers to Department of Labor and Industry enforcement and back-pay claims.

Richmond is more permissive than most cities when it comes to hotel living wage. That said, there are still limits.

Transient Occupancy Tax

Richmond imposes an 8% city transient occupancy tax on lodging stays under 90 continuous days, layered atop Virginia's 5.3% state sales tax for combined ~13.3% on hotel, motel, B&B, and short-term rental room charges citywide.

Key details: City rate: 8% on lodging. State rate: 5.3% Virginia sales tax. Combined: Approximately 13.3% total. Threshold: Under 90 continuous days. Filing: Monthly remittance required.

Failure to collect, file, or remit the 8% occupancy tax triggers penalties, interest charges, and potential revocation of the operator's Richmond business license under Chapter 6.

Hotel Worker Retention

Richmond has not adopted hotel worker retention rules requiring new owners to keep existing staff after ownership changes. Virginia's Dillon's Rule limits city authority over private employment, so transitions follow standard at-will employment law.

Key details: City rule: None adopted. State framework: Virginia at-will employment. Dillon's Rule: Limits local authority. Federal floor: WARN Act for 100+ staff.

No city worker retention ordinance exists, so no Richmond-specific violations occur during hotel ownership transitions.

Richmond is more permissive than most cities when it comes to hotel worker retention. That said, there are still limits.

The Bottom Line

Compared to many U.S. cities, Richmond gives residents more room on hotels & lodging. 2 of the 3 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

All of the above reflects Richmond's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.