Last Updated April 27, 2026

By: HUB's Absence Management Team

Employers in Virginia — start preparing. The Old Dominion now has an updated statutory requirement starting next year for employers to provide paid leave. Virginia’s legislature has passed both a paid family and medical leave (PFML) program and a paid sick leave law, sending both bills to Governor Abigail Spanberger’s desk. Governor Spanberger signed both bills into law on April 13, 2026. Virginia is now the first Southern state to enact statewide paid leave and will join a growing number of states with comprehensive paid leave programs. We think this is the first of many exciting updates this year for paid leave.

Key dates at a glance

  • April 13, 2026: Governor Spanberger signed both bills into law
  • July 1, 2027: Paid Sick Leave takes effect
  • October 1, 2027: PFML premium rates to be set by the Virginia Employment Commission
  • April 1, 2028: PFML premium contributions begin for employers and employees
  • December 1, 2028: PFML benefits become available to covered workers

Part 1: Virginia Paid Sick Leave (HB 5 / SB 199)

Overview

Effective July 1, 2027, Virginia’s paid sick leave law will expand the state’s existing paid sick leave requirement — which currently covers only home health workers — to nearly all employees of private employers and state and local governments. This represents a significant expansion of paid sick leave in the Commonwealth.

Accrual and caps

Under the new law, employers will be required to provide one hour of paid sick leave for every 30 hours worked by an employee, capped at 40 hours of accrued paid sick leave per year. Employees may carry over unused sick leave from year to year, and employees who transfer to a separate division or location, or who continue under a successor employer, retain their previously accrued paid sick leave.

Important: Employers who already offer paid time off are not required to provide additional paid sick leave if employees can use that existing PTO for the same purposes and under the same conditions outlined in the new law.

Permitted uses of paid sick leave

Employees may use accrued paid sick leave for the following reasons:

  • Personal illness, injury, medical appointments, or preventative care
  • Caring for a family member with an illness, injury, or medical appointment
  • Absences related to domestic violence, sexual assault, or stalking — including obtaining medical care, legal services, counseling, or relocation

Employer penalties

The law carries escalating civil penalties for employers who knowingly violate its provisions:

  • First violation: Civil penalty not to exceed $150
  • Second violation: Civil penalty not to exceed $300
  • Each successive violation: Civil penalty not to exceed $500

In addition, the Commissioner of Labor and Industry may institute proceedings on behalf of employees to enforce compliance. Aggrieved employees may also bring a private civil action against their employer and may recover double the amount of any unpaid sick leave, plus actual damages. The law also prohibits employer retaliation or interference with an employee’s exercise of their sick leave rights.

Part 2: Virginia Paid Family and Medical Leave (SB 2 / HB 1207)

Overview

Virginia’s PFML program will establish a state-administered insurance program providing up to 12 weeks of paid leave per benefit year. The program will be managed by the Virginia Employment Commission (VEC) and funded through payroll premiums shared between employers and employees. With enactment, Virginia becomes the 14th state (along with the District of Columbia) to enact a PFML program.

Qualifying reasons for leave

Covered workers may take paid leave for the following reasons:

  • An employee’s own serious health condition that prevents them from working
  • Caring for a family member with a serious health condition
  • Bonding with a new child following birth, adoption, or foster care placement
  • Obtaining safety services related to domestic violence, sexual assault, or stalking
  • Caring for a covered service member or qualifying exigency leave

The law takes a notably broad definition of family, including children, parents, siblings, grandparents, and “any individual whose close association with a covered individual is the equivalent of a family relationship.” This chosen-family provision ensures workers can care for loved ones to whom they may not have a legal or biological relationship.

Benefit amounts

Covered workers will receive 80% of their average weekly wages, subject to a cap equal to the statewide average weekly wage (adjusted annually). Leave may be taken on an intermittent or reduced schedule basis. Employers may require that PFML benefit payments run concurrently with or be coordinated with other employer-provided leave benefits or collective bargaining agreement provisions.

Funding and premiums

The PFML program will be funded through payroll premiums shared evenly between employers and employees. Key details on the funding structure:

  • Premium rates: Contribution rates will be set annually by the VEC. The initial employer contribution rate is expected to be fixed by October 1, 2027.
  • Small employer exemption: Employers with 10 or fewer employees are not required to pay the employer share of the contribution. The fund absorbs that cost, though employees at small employers still pay the same employee share as those at larger employers.

Who is covered

Nearly all Virginia workers will be covered by the PFML program, including part-time and self-employed individuals. All employees have the right to job reinstatement to the same or an equivalent position following leave, regardless of employer size, duration of employment, or hours worked per week. Employees who receive employer-sponsored health insurance will maintain their coverage while on leave. The law also prohibits employers from interfering with employees’ rights or retaliating against employees for using their PFML benefits.

What employers should do now

With both bills now signed into law, employers with employees in Virginia should begin preparing immediately:

  • Review existing PTO and sick leave policies to determine whether current offerings satisfy the new paid sick leave requirements or whether policy updates are needed before July 1, 2027.
  • Update employee handbooks to reflect both the new paid sick leave entitlement and the upcoming PFML program.
  • Assess payroll system readiness for tracking sick leave accrual (1 hour per 30 hours worked) and for processing PFML premium deductions when contributions begin in April 2028.
  • Evaluate private plan alternatives for PFML. Employers who prefer to self-administer benefits may wish to explore VEC-approved private plans as an alternative to the state program.
  • Train HR staff and managers on the new sick leave accrual rules, permitted uses (including domestic violence and safe leave provisions), and anti-retaliation protections.
  • Monitor VEC guidance as the Virginia Employment Commission develops regulations, premium rates, and implementation details throughout 2027.
  • Communicate with employees about the new benefits as details are finalized, particularly around sick leave rights that take effect in mid-2027.

View more Absence Management updates on the Absence Management Bulletins page.

NOTICE OF DISCLAIMER

Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore, they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s specific circumstances. You should consult an attorney, accountant or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your organization’s particular needs.