Virginia State Legislative Update

May 14, 2026

Employee Benefits

Virginia is moving toward changes in paid leave requirements. Below is a high‑level overview of HB 1207 / SB 2, which establishes Paid Family and Medical Leave, and HB 5 / SB 199, a pending bill that would expand paid sick leave.

HB 1207 / SB 2 – Virginia Paid Family Medical Leave (PFML)

HB 1207 / SB 2, which was enacted and signed into law on April 22, 2026, establishes Virginia’s first statewide Paid Family and Medical Leave (PFML) insurance program. Once fully implemented, the program will allow eligible individuals to receive partial wage replacement when taking time away from work for certain qualifying reasons. An employee is a covered individual if they meet a minimum monetary eligibility requirement based on wages earned, using the same framework applied for Virginia unemployment insurance. Eligibility is not based on a minimum length of employment or hours worked with a specific employer. Self‑employed individuals may also elect coverage if they meet the applicable requirements. The Virginia Employment Commission (VEC) will further define and administer eligibility as it builds the program by January 1, 2028.

Covered Reasons for Leave

Paid leave may be taken for the following qualifying events:

• The birth, adoption, or foster care placement of a child
• Caring for a family member with a serious health condition
• The employee’s own serious health condition
• Caring for a covered service member
• A qualifying exigency related to a family member’s military service
• Seeking safety services related to domestic violence, harassment, sexual assault, or stalking

Key Features of the Virginia PFML

Benefit Amount: 80% of an individual’s average weekly wages, subject to a maximum tied to the state average weekly wage. The statewide average weekly wage will be updated each year.

Duration: Up to 12 weeks of paid leave per year. Limited to 4 weeks for safety services reasons.

Program Funding: PFML is funded through payroll contributions from employers and employees.

1. Employers with more than 10 employees remit both the employer and employee portions of the contribution, with up to 50% of the total contribution permitted to be deducted from employee wages.
2. Employers with 10 or fewer employees are exempt from the employer portion and remit employee‑only contributions.

Leave may be taken on an intermittent basis and will run at the same time as federal FMLA leave when applicable. Employees who have been employed for at least 120 days are entitled to return to the same or an equivalent position following PFML leave. Employers must continue group health coverage during any covered leave, and employees must continue paying their share of the cost.

Implementation Timeline for PFML

1. January 1, 2028: VEC formally establishes and begins administering the PFML program.
2. April 1, 2028: Payroll contributions begin for covered employers and employees.
3. December 1, 2028: PFML benefits become payable to eligible individuals.

Private Plan Option for PFML

Employers may apply for approval of a private plan exemption if they offer paid leave benefits that are equal to or greater than those provided under the state program. Private plans may be offered on either a fully insured or self‑funded basis, subject to approval by the Virginia Employment Commission.

HB 5 / SB 199 Expanded Paid Sick Leave

Status: Awaiting Governor Action

Governor’s Deadline: May 23, 2026

If enacted, HB 5 / SB 199 would expand paid sick leave requirements for private employers across Virginia, with phased implementation based on employer size.

Key Features of Expanded Paid Sick Leave

Employer Coverage: All private employers, with phased effective dates:

1. July 1, 2027: 50+ employees
2. January 1, 2028: 25+ employees
3. January 1, 2029: 1+ employees

Employee Eligibility: All Virginia‑based employees, including part‑time and exempt employees.

Accrual & Use: One hour of paid sick leave for every 30 hours worked, up to 40 hours per year. Employers may frontload 40 hours annually and cap use at 40 hours per year. Unused accrued time must carry over year to year.

Permitted Uses:

1. The employee’s own medical needs
2. Care for a family member
3. Leave related to domestic violence, sexual assault, or stalking

What to Watch

HB 5 / SB 199 has not yet been enacted, and details could change if it is approved. Employers should continue monitoring developments and be prepared to review policies and payroll practices if the bill becomes law.

Many aspects of Virginia’s paid leave laws, particularly the Paid Family and Medical Leave program under HB 1207 / SB 2, will continue to be clarified through future regulations and agency guidance prior to implementation. As a result, details related to administration, contributions, exemptions, and coordination with existing employer policies may change before the program becomes operational. Employers should view current information as preliminary and continue monitoring updates as the Commonwealth issues additional guidance.

Note: This information is provided for general awareness only and may change as additional guidance is issued. It should not be relied on as legal advice.