On April 22, 2026, Gov. Abigail D. Spanberger signed SB 2/HB 1207 into law, making Virginia the first state in the South to adopt a comprehensive Paid Family and Medical Leave Insurance (PFML) program. The law goes well beyond the federal Family and Medical Leave Act (FMLA), and it applies to virtually every employer in the Commonwealth — regardless of size. Payroll contributions kick in on April 1, 2028, and employees can start drawing benefits on Dec. 1, 2028. That may feel like a comfortable runway, but the compliance groundwork starts now.

The Big Picture: From Unpaid to Paid Leave

Under the FMLA, eligible employees can take up to 12 weeks of unpaid, job-protected leave. Virginia's new PFML program changes that equation entirely. Covered individuals will receive 80% of their average weekly wages, subject to a cap of 100% of the statewide average weekly wage (currently about $1,507 per week) and a minimum weekly benefit of $100.

Who's Covered? Just About Everyone

The PFML program dramatically expands both employer and employee coverage compared to the FMLA.

All employers are covered. The FMLA applies only to employers with 50 or more employees within 75 miles of the worksite. Virginia's PFML covers every employer in the state. Small employers with 10 or fewer employees get a partial break — they are exempt from paying the employer share of contributions — but they must still withhold and remit the employee portion.

Employee eligibility is broader, too. Forget the FMLA's 12-month tenure and 1,250-hour requirements. Under the new law, an employee is eligible if they meet the minimum monetary threshold for Virginia unemployment benefits — currently $3,000 earned across at least two quarters. That means many part-time workers will qualify.

A Much Wider Definition of "Family"

The FMLA limits covered family members to a spouse, a minor child, and a parent. Virginia's PFML goes significantly further. The new definition of "family member" includes:

• Children of any age

• Grandchildren and grandparents

• Siblings

• Domestic partners

• Any individual who regularly resides in the employee's home with an expectation that the employee will provide care

This expanded definition will likely increase the frequency of leave requests, and employers should plan accordingly.

A Brand-New Leave Category: Safety Services Leave

The law introduces an entirely new type of qualifying leave with no federal equivalent. Employees — or their family members — affected by domestic violence, harassment, sexual assault, or stalking may take up to four weeks of paid leave per benefit year under this provision. Employers should be prepared to handle these requests with appropriate sensitivity and confidentiality.

Job Protection Kicks In Sooner Than You Think

Under the FMLA, an employee must work for the same employer for 12 months before job restoration rights apply. Virginia's PFML drops that threshold to just 120 days. Once that mark is reached, returning employees are entitled to reinstatement to the same or an equivalent position. Employers must also continue health care benefits during the leave period — a requirement that mirrors the FMLA but now reaches a much larger pool of workers.

How It's Funded: The Payroll Contribution Model

The program is financed through mandatory payroll contributions, split between employers and employees, and deposited into the Family and Medical Leave Insurance Trust Fund. The Virginia Employment Commission (VEC) will administer the fund.

Here's what employers need to know about the mechanics:

• The VEC must set the initial contribution rate by Oct. 1, 2027.

• Employers with 11 or more employees must remit both the employer and employee shares of the contribution.

• Employers may deduct up to 50% of the total premium from employee wages.

• Small employers (10 or fewer employees) remit only the employee portion.

Anti-Retaliation Rules and Non-Waiver Protections

The law includes strong guardrails for employees. Employers may not retaliate against any individual who requests or uses PFML benefits. Additionally, any agreement that purports to waive an employee's PFML rights — including collective bargaining agreements entered after January 1, 2027 — is void and unenforceable. Employers should review existing employment agreements and policies to ensure compliance.

The Private Plan Alternative

Employers who would prefer not to participate in the state-run program have an option: they may apply to the VEC for approval of a private plan, either self-insured or fully insured through a carrier. The catch is that the private plan must offer benefits that are equal to or greater than those provided under the state program, at no additional cost to employees. Approved private plans must be recertified every two years.

For larger employers with existing leave or disability programs, this route may offer more flexibility and administrative control — but it requires careful plan design and ongoing compliance.

Open Question: Residence vs. Work Location

This is a particularly important question for employers in the D.C. metro area and other border regions. Hundreds of thousands of Virginians commute to jobs in Washington, D.C., Maryland, and other neighboring states — and the statute does not squarely address whether PFML coverage follows the employee's state of residence or the location where the employee performs work. The law defines a "covered individual" by reference to Virginia's unemployment insurance eligibility framework, and it defines "employer" by incorporating existing unemployment insurance definitions.

Because the PFML program is built on top of Virginia's unemployment insurance infrastructure, coverage will likely track the same rules — which generally look to where wages are reported and the employer's connection to the state, not solely where the employee lives. Virginia's unemployment law typically covers services performed within the Commonwealth.

For employers with employees who live in Northern Virginia but commute into D.C. or Maryland — or who employ out-of-state residents at Virginia worksites — this ambiguity matters in a big way. The VEC's forthcoming regulations, expected by April 1, 2028, should provide clarity. In the meantime, employers with cross-border workforces should keep a close eye on regulatory developments and begin reviewing their payroll and benefits systems for readiness.

What Employers Should Be Doing Now

Although benefits do not begin until late 2028, the compliance clock is already ticking. Employers should consider taking the following steps:

• Audit your workforce. Understand how many employees will be covered, including part-time workers who meet the monetary eligibility threshold.

• Review existing leave policies. Identify gaps between your current benefits and the new PFML requirements, and begin planning updates.

• Evaluate the private plan option. If you have an existing short-term disability or paid leave program, assess whether it can be adapted to meet the statutory requirements.

• Update payroll systems. Prepare for contribution withholding and remittance ahead of the April 1, 2028, start date.

• Train managers and HR teams. Make sure supervisors understand the new leave categories, expanded family member definitions, and anti-retaliation obligations.

• Monitor VEC guidance. Watch for the initial contribution rate (due Oct. 1, 2027) and implementing regulations that will answer open questions, including the residence-versus-work-location issue.