Virginia enacts paid family medical leave program

Virginia has enacted a new Paid Family and Medical Leave (PFML) insurance program for workers, administered by the Virginia Employment Commission (VEC). Employers must start making payroll contributions on April 1, 2028, and the VEC will begin paying PFML benefits to employees on December 1, 2028.

Under HB1207, all Virginia employers and employees must participate in the PFML program, which is funded through payroll contributions:

• Large employers (defined as employers with 11 or more employees) must pay both the employer and employee share of PFML premiums, with up to 50% of the total premium allowed to be deducted from employees’ wages for their portion.
• Small employers with up to 10 employees are not required to pay a portion of the premium and will only remit the employee’s share of the premium, which is deducted from wages.
• Self-employed individuals may opt in by paying premiums to obtain PFML coverage.

Benefits and covered events

Eligible employees may receive up to 12 weeks of paid leave, with wage replacement of up to 80% of their average weekly wage, up to a statutory cap.

PFML benefits may be paid during leave for various family and medical reasons, including:

• Bonding with a new child following birth, adoption or foster care placement;
• An employee’s own serious health condition;
• Caring for a family member with a serious health condition, including a family member who is an injured service member;
• A qualifying emergency related to a family member’s active military duty; or
• Certain safety-related needs for the employee or a family member (e.g., obtaining services related to domestic violence).

Employers will be required to provide written notice to employees about PFML benefits when they are hired and annually thereafter, and whenever an employee requests PFML benefits.

“Virginia is now the first state in the South to create a paid family and medical leave program,” said Governor Abigail Spanberger. “Thanks to this landmark law, millions of Virginians will no longer be forced to give up their paycheck when they welcome a child, or when their loved one faces a serious illness.”

Takeaways

The VEC is required to issue detailed PFML regulations by April 1, 2028, to guide implementation. Employers should watch for VEC updates and the upcoming regulations and begin now to ensure all necessary policy changes, payroll adjustments and notice procedures are in place before PFML contributions begin and benefits become available.