Virginia employers are standing at the edge of one of the most consequential shifts in workplace regulation the Commonwealth has seen in decades. During the 2026 General Assembly session, lawmakers enacted two sweeping paid leave measures — the Paid Family and Medical Leave (PFML) insurance program and a new statewide paid sick leave mandate — that together reshape how Virginia businesses must approach employee leave, payroll administration, and risk management moving forward.

These laws do more than merely expand employee benefits. They signal a structural change in how Virginia regulates leave, moving decisively away from employer‑discretion models and toward statutorily guaranteed, enforceable rights administered by state agencies and backed by significant enforcement tools. While some obligations take effect as early as July 2027, others ramp up through 2029, with payroll contributions and benefit payments beginning in 2028. That staggered timeline gives employers time, but not much, to prepare.

Historically Virginia has lagged behind the growing number of states that already require paid sick leave or paid family and medical leave. With the passage of these 2026 laws, the Commonwealth is no longer an outlier. Instead, Virginia now joins a national trend toward mandatory paid leave regimes, while still preserving some features designed to limit disruption to employers, particularly small and mid‑sized businesses that plan early.

What follows is a practical guide for Virginia employers: who is covered, how the new paid leave programs work, when obligations begin, how Virginia’s approach compares to other states, and, most critically, what employers should be thinking about now to avoid being caught flat‑footed as these changes move from legislation to enforcement.

The Paid Family and Medical Leave Program: A Statewide Insurance Model

Virginia’s Paid Family and Medical Leave program (PFML) establishes a state-administeredinsurance system, overseen by the Virginia Employment Commission (VEC), that provides wage‑replacement benefits for employees taking qualifying family or medical leave.

Who Is Covered?

The PFML law applies broadly to nearly all private‑sector employers in Virginia, regardless of industry. Self‑employed individuals may elect coverage. Employer workforce size does not determine whether employees are eligible for PFML benefits—but it does affect who pays into the system:

• Employers with more than 10 employees must remit both the employer and employee portions of PFML contributions (up to 50% may be withheld from employees).
• Employers with 10 or fewer employees are exempt from paying the employer share but must still withhold and remit employee contributions.

What Leave Does PFML Cover?

Eligible employees may receive up to 12 weeks of paid leave per benefit year for qualifying events, including:

• The birth, adoption, or foster placement of a child
• The employee’s own serious health condition
• Caring for a family member with a serious health condition
• Certain military‑related exigencies
• Seeking safety services related to domestic violence, sexual assault, or stalking (currently capped at four weeks per year)

PFML benefits run concurrently with FMLA leave where both laws apply and include job restoration and continuation of health benefits similar to the federal FMLA.

How Much Will Employees Be Paid?

PFML provides wage replacement equal to 80% of an employee’s average weekly wages, subject to a statutory cap tied to the statewide average weekly wage. The law also establishes minimum weekly benefits for low‑wage workers.

Benefits are paid directly by the Commonwealth from a newly created Family and Medical Leave Insurance Trust Fund, not by the employer, unless the employer opts for an approved private plan.

When Does PFML Take Effect?

The PFML timeline is critical for business planning:

• Program development: 2026–2027
• Payroll contributions begin: April 1, 2028
• Benefits become available: December 1, 2028

The VEC must finalize regulations governing contributions, claims processing, employer notice requirements, and private plan approvals by April 1, 2028.

How Virginia’s New Paid Leave Laws Compare to Other States

Virginia’s 2026 paid leave legislation places the Commonwealth firmly within a national movement, with some notable distinctions that employers should understand.

For paid family and medical leave, Virginia’s PFML program closely resembles insurance‑based systems adopted in states such as California, New Jersey, New York, Massachusetts, Connecticut, Washington, and Colorado. Like those programs, Virginia’s PFML relies on payroll contributions, provides partial wage replacement for qualifying family and medical events, and is administered by a state agency rather than individual employers. In that respect, Virginia employers with multi‑state operations may find the framework familiar, even if the specific contribution rates and administrative mechanics differ.

At the same time, Virginia struck a more employer‑friendly balance than some early‑adopter states. Small employers (those with 10 or fewer employees) are exempt from paying the employer share of PFML contributions, and all employers retain the option to satisfy PFML obligations through an approved private plan, a feature that allows businesses with robust existing leave programs to avoid duplicative costs if they plan carefully.

Virginia’s paid sick leave law, however, represents a broader shift. Once fully phased in by January 1, 2029, Virginia will join jurisdictions such as Maryland, New York, California, Arizona, Colorado, and the District of Columbia in requiring nearly all employers to provide paid sick leave that accrues by statute. As in those states, Virginia’s law restricts employee documentation requirements, prohibits retaliation, limits the use of attendance policies, and authorizes both administrative enforcement and private lawsuits.

One key difference is Virginia’s phased‑in coverage, which gradually extends obligations based on employer size. Many other states imposed paid sick leave mandates more abruptly, leaving smaller employers little time to adapt. Virginia’s gradual approach gives employers a planning runway—but only if they use it.

The bottom line is this: while Virginia’s paid leave laws are not the most aggressive in the country, they are fully modern, legally enforceable, and designed to function as long‑term structural features of the Commonwealth’s employment landscape. Employers who have relied on Virginia’s historically limited leave mandates should view these laws not as temporary adjustments, but as a permanent recalibration.

The New Paid Sick Leave Law: A Direct Employer Mandate

Separate from PFML, Virginia also enacted a standalone paid sick leave law that directly requires employers to provide paid sick leave to employees.

Phased Coverage by Employer Size

Paid sick leave obligations will apply progressively based on employer workforce size:

• Employers with 50+ employees: July 1, 2027
• Employers with 25–49 employees: January 1, 2028
• All employers (1+ employees): January 1, 2029

Accrual and Use of Paid Sick Leave

Employees accrue paid sick leave at the rate of one hour for every 30 hours worked, capped at 40 hours per year, unless the employer elects to offer employees more generous benefits. Accrued leave carries over year to year, though annual use of accrued leave may be capped.

Paid sick leave may be used for:

• An employee’s physical or mental illness, injury, or preventive care
• Care of a family member with a health condition
• Absences related to domestic violence, sexual assault, or stalking

Employers may front‑load leave instead of tracking leave accrual. Existing PTO policies can satisfy the law if they meet all statutory requirements.

Enforcement and Risk Exposure

The paid sick leave statute includes robust anti‑retaliation provisions, recordkeeping mandates, and enforcement mechanisms, including:

• Administrative enforcement by the Virginia Commissioner of Labor and Industry
• Civil penalties for violations
• A private right of action allowing employees to sue employers directly
• Mandatory attorneys’ fees for prevailing employees

For employers using attendance‑based discipline systems, these provisions may require careful recalibration to comply fully with the new paid sick leave law.

Final Thoughts

Virginia’s new paid leave laws represent one of the most significant expansions of workplace protections in decades. For employers, they also introduce a more complex, compliance‑driven leave environment that will demand planning, coordination, and sustained attention well before the first paycheck deduction is taken or the first benefit is paid. Thoughtful preparation now will help Virginia businesses adapt smoothly—and avoid unnecessary disruption—when these sweeping changes fully arrive.

If you have questions about Virginia’s new paid family and medical leave or paid sick leave requirements or need help with a specific employment law issue in Virginia, Maryland, or the District of Columbia, please contact Doug Taylor at (703) 525-4000 or rdougtaylor@beankinney.com.

This article is for informational purposes only and does not constitute legal advice. If you have questions about how these laws apply to your business, consulting counsel early is strongly recommended.