Virginia enacts paid family and medical leave mandate 

Virginia is the first state since 2023 to enact a law (2026 Chs. 981/1093, SB 2/HB 1207) establishing a mandatory paid family and medical leave (PFML) insurance program. By October 1, 2027 (and annually thereafter), the Virginia Employment Commission (VEC) will set the contribution rate, based on wages and capped at the Social Security taxable wage base (SS Max). Contributions — evenly split between employers and employees, with an exception for certain small employers — will start on April 1, 2028. Benefits will first become available on December 1, 2028. Covered individuals may take up to 12 weeks of paid leave for medical and family reasons in a benefit year. Covered employers must participate in the state program or maintain an approved private plan.

Virginia joins 14 other states (plus Washington, DC, and Puerto Rico) that require paid leave for an employee’s own serious health condition or disability. Except for Hawaii and Puerto Rico, all of these jurisdictions also require paid leave for qualifying family or caregiving reasons.

On a historical note, four years ago Virginia established private family leave insurance. This voluntary coverage remains available for employers wishing to offer wage replacement for qualifying family leave (child bonding, care for a family member with a serious health condition, and military exigency). It is unclear, however, whether this option will remain useful once the mandatory PFML program takes effect. Virginia is the first state to transition from allowing voluntary paid family leave insurance to requiring PFML, which may present some nuances as the program is developed.

For more on Virginia’s PFML program, download the 9-page article here and the 23-page slide deck here.