What Virginia’s New Paid Family and Medical Leave Law Means for Your Business

Virginia quietly made history in employment law and if you run a business in the Commonwealth, you need to know about it. Governor Abigail Spanberger has signed amended Senate Bill 2 into law, establishing a statewide Paid Family and Medical Leave program. The legislation makes Virginia the first Southern state to enact paid leave for all of its workers. Now is the time for employers to prepare.

I. A Law Employers Cannot Ignore

SB 2 is a large, permanent expansion of state-mandated employment benefits, financed through payroll contributions and structured to grow. Its headline terms are straightforward: the program provides up to 12 weeks of paid leave in a benefit year for an employee’s serious health condition, to care for a family member with a serious health condition, to care for a new child, to obtain safety services, to care for a covered service member, and for qualifying exigency leave. Workers receive 80 percent of their average weekly wages, up to a cap equal to the Virginia state average weekly wage, adjusted each year.

But the details buried beneath those headlines are where employers need to pay close attention.

II. What the Law Actually Requires of Employers

Every Virginia employer needs to understand three things: who is covered, how the program is funded, and what the compliance timeline looks like.

On coverage, the law is nearly universal. It applies to private sector workers and local government employees regardless of employer size and includes both full-time and part-time workers. If you have employees in Virginia, this law applies to you.

Employers and employees will both contribute to a fund established by Virginia’s state treasury. Contribution rates will be set by the state every year. Employers with more than ten employees may deduct up to 50 percent of the required contribution directly from an employee’s wages and must pay the remaining 50 percent. Employers with ten or fewer employees must deduct 50 percent from wages but are not required to provide any additional funding. Small employers do not escape the law — they simply pay less into it.

And critically, SB 2 directs the Virginia Employment Commission to adjust contribution rates to ensure the trust fund maintains a minimum projected balance of 40 percent — effectively guaranteeing that if utilization exceeds projections, payroll contributions will rise. As an alternative to this fund, employers may opt for private plans that meet or exceed the state benefits.

Contributions begin April 1, 2028, and workers can start taking leave on December 1, 2028. That may feel distant, but the Virginia Employment Commission is required to have all implementing regulations in place by July 1, 2027, leaving employers roughly a year from that point to update payroll systems, revise policies, and train managers before the first dollar is due.

III. The Details That Will Catch Employers Off Guard

Two provisions of SB 2 deserve special attention because they go well beyond what most employers expect from a standard leave law.

First, the definition of “family member” is broader than the federal law. The law extends eligibility beyond spouses, parents, and children to include grandparents, grandchildren, siblings, and individuals who reside in the same home and regularly depend upon the employee for care or who have an expectation of care.

Second, the law covers “safety services,” but this leave is capped at 4 weeks. Employees may receive paid time off for a wide range of activities related to domestic violence, sexual assault, stalking, or harassment, including relocation, legal proceedings, counseling, and security measures. Certification can be provided through a signed statement by the worker alone. Employers will have limited ability to verify or challenge these claims, which means having clear internal procedures in place before the program begins is essential.

IV. Practical Steps for Virginia Employers

The benefits do not begin until December 2028, but the compliance work begins now. Here is where to start.

1. Know your headcount. Whether you have ten employees or one hundred, SB 2 applies to you. The size of your business affects how much you contribute, not whether you are covered at all. Confirm your employee count and understand which tier of contribution obligations applies to you.
2. Plan your payroll and budgeting adjustments now. Contribution rates will not be set until closer to the start date of April 2028, but you should build a line item for this cost in your financial planning today. Other states’ experience with similar programs suggests that initial cost estimates can prove overly optimistic.
3. Review and revise your leave policies. Your current employee handbook almost certainly does not address SB 2. It will need to be updated to explain the new program, how employees access benefits, and how this interacts with existing leave policies — including the federal Family and Medical Leave Act, which remains in place alongside Virginia’s new law.
4. Train your managers. Leave requests under SB 2 will look different from what your managers are used to handling. The broad definition of “family member” and the self-certification option for safety services leave will generate judgment calls that untrained managers will be ill-equipped to make.
5. Retain qualified employment counsel. The implementation rules are still being written. Working with an attorney who monitors developments from the Virginia Employment Commission will keep you ahead of your obligations rather than scrambling to catch up.

Summary

SB 2 may be the most significant expansion of mandatory employment benefits in Virginia in a generation. It is now law, and the clock is running. Employers who treat the 2028 effective date as a distant problem will find themselves underprepared and potentially liable.

Our firm represents employers and businesses navigating Virginia’s employment laws. If you have questions about how SB 2 affects your business, what you need to do to prepare, or how to update your leave policies and employee agreements, contact Simms Showers today for a confidential consultation.

Disclaimer: This memorandum is provided for general information purposes only and is not a substitute for legal advice particular to your situation. No recipients of this memo should act or refrain from acting solely on the basis of this memorandum without seeking professional legal counsel. Simms Showers LLP expressly disclaims all liability relating to actions taken or not taken based solely on the content of this memorandum.