New Leave Laws Are on the Horizon in Virginia. Is Your Business Prepared?

By Barbara Jennings, Benefits Human Resources Consultant, SPHR

Virginia recently passed two major pieces of legislation: the Expanded Paid Sick Leave Law and the Paid Family and Medical Leave (PFML) program, which will significantly change how businesses manage leave, payroll, and employee benefits over the next several years.

With the first compliance deadline arriving in 2027, employers should already be preparing for what implementation of these two laws will require operationally.
 

Expanded Paid Sick Leave: What to Know

For most Virginia employers, the expanded sick leave law represents a significant operational shift. Beginning July 1, 2027, all private employers with 50 or more employees will be required to provide employees with one hour of paid sick leave for every 30 hours worked, up to 40 hours annually — covering everything from personal illness and preventive care to mental health needs, family caregiving, and “safe leave” related to domestic violence situations.¹

Unused hours may carry over to the following year. However, accrued sick leave is not considered a vested benefit, meaning employers are not required to pay out unused hours if an employee leaves or is terminated.

The law builds on Virginia's existing paid sick leave requirements — currently limited to home health workers — and extends them to all full-time and part-time employees, regardless of employer size.

Employers should begin reviewing their policies well in advance to ensure compliance, as many organizations may already have leave policies and procedures that will require revisions. Here are several key actions to prepare:
 

• Amend Existing Policies: Review your current sick leave policy. If it already meets or exceeds the requirements, update it to include elements that may be missing, such as safe leave. Employers should also review existing PTO programs to ensure they align with new accrual and carryover requirements.

 

• Create Policies If They Don’t Exist: Employers without formal sick leave policies should establish one that addresses accrual, usage, and eligibility requirements. Organizations may also choose to go beyond the law's minimum requirements by allowing employees to accrue more than 40 hours annually or by frontloading leave at the beginning of the year rather than requiring employees to accrue it.

 

• Work with Your Payroll Provider: The accrual model may require system updates or new tracking processes. Loop your payroll provider in early; they can tell you what information they need to implement accruals correctly and flag any required changes before the law takes effect.

 

• Communicate Early with Employees: Position these changes as both a compliance requirement and a meaningful employee benefit that supports workforce wellbeing and retention.

Don’t wait until the deadline. Begin reviewing and updating policies now to allow time for implementation, system updates, and communication.
 

Paid Family and Medical Leave Coming in 2028

Virginia employers should also prepare for the state’s Paid Family and Medical Leave program, which will be implemented in phases beginning in 2028. Like FMLA, PFML provides up to 12 weeks of job-protected leave, but with a key difference: it’s paid.

Virginia has historically been considered an employer-friendly state, with no mandated vacation time, no required lunch breaks, and significant flexibility around workplace leave policies. But as competition for talent increases, the state is beginning to align more closely with others offering broader leave protections — and PFML is a clear signal of that shift.

The program will be funded through payroll contributions shared equally between employers and employees. Contributions will begin in April 2028, with employee benefits becoming available in December 2028.

This makes Virginia the first Southern state to enact such a law and introduces several
important differences from FMLA that employers should know, including:
 

• Wage Replacement: Unlike FMLA, PFML offers income replacement of up to 80% of an employee’s wages during an approved leave period.

 

• Broader Eligibility: Virginia PFML eligibility is based on employee earnings—not tenure or hours worked—and is administered by the Virginia Employment Commission. The earnings formula, calculated across multiple calendar quarters, mirrors the eligibility framework used for unemployment benefits.

 

• No Waiting Period: Under FMLA, employees must generally have worked for an employer for at least 1 year and have accumulated 1,250 work hours before becoming eligible. PFML does not have those employer-based tenure requirements.

 

• Concurrent Leave: Employees eligible for both programs will generally take PFML and FMLA concurrently, allowing job protection and wage replacement during the same leave period.

 

• Expanded Family Definitions: PFML includes a broader range of relationships, including domestic partners, siblings, grandparents, grandchildren, and household members who rely on the employee for care.

Planning Ahead Pays Off

One of the more complex challenges ahead will be coordinating these new requirements with existing paid time-off programs—short-term disability, PTO, and sick leave—and determining how they work together.

Employers who begin planning now and work with trusted advisors will be better positioned to manage compliance as these changes take effect.

Towne Benefits can help you prepare for these changes. Contact us today to learn more.

¹ This law is being phased in based on number of employees. 1/1/28 employers with 25-49 employees,1/1/29 employers with 1 or more employees