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Virginia's Paid Family Leave Program

Virginia has passed legislation to create a Paid Family and Medical Leave program. This state-administered benefit will cover leave compensation for a qualifying life event, paid for through modest employee and employer contributions. The program will make paid family and medical leave more affordable and accessible to small business owners and their employees.

Who will benefit?

Nearly all Virginia employees will benefit, including:

  • Private sector and local government employees
  • Full-time and part-time employees regardless of employer size 
  • Self-employed individuals, if they voluntarily opt in to coverage

How will the program work?

The program will be funded through mandatory employee and employer payroll contributions.

  • Employers with fewer than 10 employees are not required to contribute for their workers to claim this benefit.
  • To be eligible, workers will need to have earned at least $3,000 – the minimum amount required to be eligible for unemployment insurance in Virginia.
  • Workers will receive 80% of their average weekly wages, up to a maximum amount equal to the state’s average weekly wage. In 2026, this average is $1,507.01 and is adjusted annually.
  • Workers will be able to take up to 12 weeks of leave per year.
What is the timeline?
  • Workers and employers will begin contributing to the program on April 1, 2028.
  • Workers can begin taking leave and receiving benefits starting December 1, 2028.
What are the benefits of the program for small business owners?

Implementing Paid Family and Medical Leave in Virginia will benefit small employers by:

  • Reducing turnover costs – Replacing an employee costs approximately 21% of the employee’s annual salary. Employees with access to paid leave are significantly more likely to return to the labor force following the birth of a child or serious health event.
  • Improving productivity and morale – Businesses in states with paid family leave laws report increased productivity after the state’s paid leave implementation. 
  • Reducing workplace injuries and deaths – When workers with serious health conditions take paid leave, they are more likely to be fully recovered when they return to work, decreasing risks of medical emergencies or relapses on the job. This protects employees, customers and business owners from liabilities associated with workplace accidents and injuries.
  • No additional expense or small savings – Most businesses report no cost increase, and one study in California found that small firms experienced a 14% reduction in average labor costs per employee when workers used paid leave.