Virginia has officially enacted a statewide Paid Family and Medical Leave (PFML) insurance program, creating new compliance obligations and strategic considerations for employers operating in the state.

Below is a summary of the key provisions and timelines to be aware of:

Program Overview

• The program will be administered by the Virginia Employment Commission (VEC).
• Approximately 3.2 million workers (91% of Virginia’s private workforce) are expected to be eligible.
• Eligible employees may receive up to 12 weeks of paid leave, with wage replacement of up to 80% of average weekly wages, subject to a cap.

Employer Contributions

• Employers with 11+ employees
  • Required to contribute to the program
  • May deduct up to 50% of contributions from employee wages
• Employers with 10 or fewer employees
  • Responsible for employee contributions only
  • Exempt from employer contributions
• Employers will have the option to satisfy requirements through an approved private plan, which may be advantageous for those with existing robust leave programs.

Key Dates

• April 1, 2028: Payroll contributions begin
• December 1, 2028: Benefits become available
• April 1, 2028: Final regulations due from VEC

Covered Leave Reasons

• Benefits may be used for:
• Bonding with a new child (birth, adoption, foster placement)
• The employee’s own serious health condition
• Caring for a family member with a serious health condition
• Military-related exigencies or caregiving
• Safety-related needs (e.g., domestic violence situations)

Compliance Considerations

• Leave will run concurrently with federal FMLA when applicable
• Includes job protection and continuation of benefits during leave
• Employers must provide written notices at hire, annually, and upon leave-related events

What This Means for Benefit Professionals

• This legislation represents a significant expansion of mandated paid leave and introduces new administrative and funding requirements. Benefit professionals should begin to:
• Evaluate workforce size and contribution obligations
• Review current leave policies for alignment or private-plan opportunities
• Plan for payroll and HR system updates
• Prepare communication strategies for employees

We will continue to monitor regulatory developments and provide updates as additional guidance is issued. Please reach out if you would like assistance in evaluating your organization’s readiness or exploring private plan options.

This alert is for general informational purposes only and is not legal advice. If legal advice, counsel, or representation is needed, the services of a legal professional should be sought.