Part 3: Virginia Employers Should Prepare Now for New Employee Leave and Benefits Requirements

Written by: Kristina Keech Spitler

Virginia is entering a period of significant change in the leave and benefits landscape, with new laws that will expand employee protections and increase employer compliance obligations in the coming years. From mandatory paid sick leave to a new state-administered paid family and medical leave program, these developments signal a clear shift toward more comprehensive workplace benefits for employees. Employers should begin by understanding these new laws and evaluating their practices and policies to ensure they are prepared for these phased-in laws.

Mandatory Paid Sick Leave

One of the major developments is a new required paid sick leave law, which is effective July 1, 2027, but which will be phased in over several years. The law will apply on a phased-in basis depending on the size of the employer as follows:

• employers with 50 or more employees starting July 1, 2027;
• employers with 25 or more employees starting January 1, 2028; and
• employers with one or more employees starting January 1, 2029.

Full-time and part-time employees must accrue one hour of paid sick leave for every 30 hours worked, capped at 40 hours, unless the employer chooses to provide more. There are also a broad range of covered purposes for which an employee may use the mandated paid sick leave, including:

• the employee’s own mental or physical illness, injury, health condition, medical diagnosis, treatment, or preventive care;
• care for a family member; and
• absences related to domestic violence, sexual assault, or stalking, where the leave is needed to obtain medical care, counseling, legal services, relocation assistance, or other victim services.

Importantly, the paid sick leave law’s definition of “family member” is extremely broad, covering not only children, parents, spouses, domestic partners, grandparents, grandchildren, and siblings, but also other individuals for whom the employee is responsible for providing or arranging health or safety-related care, as well as individuals related by blood or affinity whose close association is the equivalent of a family relationship.

There are also several operational rules employers should understand, including that paid sick leave may be accrued or frontloaded, that unused required leave must be carried over to the next year (but capped at 40 hours annually), and that employers generally cannot require doctor’s notes for absences of three days or less. Further, unless the employer allows smaller increments, the leave must be usable in hourly increments. Importantly, employers may not require employees to find replacement workers or work alternate shifts as a condition of taking leave.

Employers should also pay close attention to enforcement because violations can create meaningful financial and litigation exposure. An employee may file a complaint with the DOLI Commissioner within one year, and the Commissioner may attempt mediation, determine a violation occurred, and impose civil penalties for knowing violations. An employee may also bring a civil action within two years and seek relief that includes double the amount of unpaid sick leave, double actual damages, reinstatement, lost wages and benefits, interest, and reasonable attorneys’ fees.

Even though implementation is phased, employers should begin reviewing the practices and either create a paid sick leave program for those who do not offer any paid leave and/or review their current policies and amend them if necessary to ensure that they comply with the new paid sick leave law.

Virginia Paid Family and Medical Leave

Virginia’s new Paid Family and Medical Leave program is a significant new development for employers and employees in Virginia. It is structured as a state-administered insurance program funded through both employer and employee payroll contributions and designed to provide partial wage replacement when employees take covered family or medical leave. The law is effective July 1, 2026, but benefits will not commence until 2028. The Virginia Employment Commission is tasked with establishing and administering the program by January 1, 2028, with payroll contributions beginning by April 1, 2028, and claims starting to be paid by December 1, 2028.

The program provides a benefit of 80% of the employee’s average weekly wage, up to 100% of the state weekly wage, and generally allows up to 12 weeks of leave in a 12-month period, except that only 4 weeks are available for safety services. It also describes covered reasons for leave, including bonding with a new child, caring for a family member with a serious health condition, the employee’s own serious health condition, caring for a covered military service member, qualifying exigency leave, and seeking safety services.

The program will cover all employers (there is no minimum employee number threshold).  However, contribution obligations will differ depending on size: 10 employees or more – both the employer and employee make contributions; less than10 employees – only employee makes contributions.

Employers should keep up-to-date regarding the roll-out of this new program by the VEC. They will have time to plan while the program is being created by the state but should start thinking about how the new program will affect their workforce.

Employee Child Care Assistance Pilot Program

Virginia is also investing in workforce support through a new childcare cost-sharing program. Effective July 1, 2026, Employers who contribute to employee childcare costs may receive state matching funds (subject to availability). Key features of the program are:

• Costs are shared among employee, employer, and state
• Targeted toward families earning up to 85% of the state median income
• Administered by the Virginia Early Childhood Foundation
• Operates on a first-come, first-served basis, with priority for small businesses.

Contact Kristina Keech Spitler, Esq. or Meghan M. Phillips, Esq. to make sure your organization is prepared for these leave and benefits law changes, review your employment practices, and assist with other employment-related legal issues at 703-369-4738 or kspitler@vfnlaw.com or mphillips@vfnlaw.com.

This blog post is not intended to provide legal advice or substitute for the advice of legal counsel with respect to specific facts and situations. See disclaimer