Virginia Joins the Paid Leave Movement — Employers and Brokers Can Start Preparing Now

Contributor: Sarah Hipp, Centro Absence Management Consultant

After a previous failed attempt, Virginia has done it. On April 22, 2026, the Virginia General Assembly accepted Governor Abigail Spanberger’s recommended amendments to House Bill 1207, creating a statewide Paid Family and Medical Leave program and making Virginia the first state in the South to enact a comprehensive PFML law.

The passage of Virginia PFML is significant not just for the 3.6 million workers who will eventually benefit from it, but for what it signals about the direction of the national paid leave landscape. The South has long been the largest remaining gap in state-level paid leave coverage. Virginia’s law changes that — and could possibly accelerate legislative momentum in neighboring states.

For employers and brokers, the most important thing to understand right now is that while the law does not require payroll contributions until April 2028 and benefits do not launch until December 2028, the preparation window opens today. Here is what you need to know.

What the Law Provides

Virginia PFML will provide eligible workers with up to 12 weeks of paid leave per benefit year for qualifying reasons including the birth, adoption, or foster placement of a child; the employee’s own serious health condition; caring for a family member with a serious health condition; qualifying military exigency leave; and safety leave related to domestic violence, sexual assault, or stalking.

The benefit amount is 80% of the employee’s average weekly wage, capped at the Virginia State Average Weekly Wage — $1,507.01 in 2026, adjusted annually. 

One of the more progressive features of the law is its broad definition of family. Virginia’s PFML covers not just immediate biological and legal family members but also any individual whose close association with the covered worker is the equivalent of a family relationship — a chosen family provision that is increasing in popularity amongst recent states to pass PFML programs.The program also includes job protection and benefit continuation rights. Employees who take PFML will be entitled to reinstatement and to continuation of any employer-provided health insurance during the leave period. PFML will run concurrently with FMLA where both apply to avoid “stacking” of time.

How It Will Be Funded

Virginia PFML will be funded through payroll contributions shared between employers and employees. The specific contribution rate will be set by October 1, 2027 — giving employers and payroll vendors a defined window to prepare before contributions begin.  The wage base subject to contributions is capped at the Social Security taxable wage base ($184,500 for 2026).

The funding structure has two tiers based on employer size:

• Employers with 11 or more employees: Must remit both the employer and employee shares of the contribution. Up to 50% of the required contribution may be deducted from employee wages.
• Employers with 10 or fewer employees: Required to remit only the employee portion and are exempt from the employer contribution share.

Coverage Options

Participation in Virginia PFML is mandatory for all employers with employees working in Virginia. That said, the law does include a private plan substitution option, meaning employers may elect coverage through an approved insurance carrier or self-administer benefits for their organization. Any private plan must receive state approval and provide benefits that are equal to or better than the state program — full compliance is required regardless of which path employers choose.

What Employers and Brokers Can Do to Prepare

The two-year runway to contribution start does not mean two years of inaction. Employers and brokers who approach the Virginia program the way many have approached other recent PFML launches — waiting until six months before benefits go live — will find themselves scrambling on policy, payroll, and communication all at once.  Instead, taking a phased approach could make for a smoother experience:

The Bottom Line

Virginia’s PFML law is a meaningful milestone — both for the workers who will benefit from it and for the broader trajectory of state-level paid leave in the United States. For the leave and benefits community, it is a signal that the expansion of state PFML is not slowing down.

For employers with Virginia employees, the message is straightforward: the timeline is real, the preparation window is open, and the employers who use the next two years wisely will be far better positioned than those who treat this as tomorrow’s problem.

Centro’s Absence Consulting Team works with brokers to navigate state PFML programs, coordinate leave administration, and build leave strategies that work — for employers and the employees who depend on them.