Takeaways

• Virginia is expanding employer obligations through a paid family and medical leave insurance program, with contributions beginning in 2028.

• Employers should review leave policies, update payroll systems and prepare for new notice and compliance requirements.

  Article

Virginia’s 2026 General Assembly was one of the busiest seasons for employers. On April 22, 2026, the General Assembly accepted Gov. Abigail Spanberger’s recommended amendments to legislation creating a statewide paid family and medical leave insurance program.

Paid Family and Medical Leave Insurance Program

Under SB 2/HB 1207 Virginia will be phasing in a new comprehensive paid family and medical leave insurance program (PFML), administered by the Virginia Employment Commission (VEC). Eligible employees may receive up to 12 weeks of paid leave, with wage replacement of up to 80% of the employee’s average weekly wage, subject to a statutory cap.

The program is funded through employer and employee payroll contributions. Employers with at least 11 employees must remit both the employer and employee portions of the contributions (up to 50% may be deducted from employee wages). Employers with up to 10 employees must remit only the employee portion and are exempt from the employer contribution. Employers may seek approval to satisfy their obligations through a private plan, which may suit organizations that already offer robust paid leave benefits.

Payroll contributions will begin April 1, 2028, and...

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