VirginiaHB12072026 Regular SessionHouseWALLET

Paid family & med. leave insurance program; definitions, notice requirements, civil action, report.

Sponsored By: Briana D. Sewell (Democratic)

Signed by Governor

Summary

Paid family and medical leave insurance program; notice requirements; civil action. Requires the Virginia Employment Commission to establish and administer a paid family and medical leave insurance program with benefits beginning April 1, 2028. Under the program, benefits are paid to covered individuals, as defined in the bill, for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning April 1, 2028. The bill provides that the amount of a benefit is 80 percent of the employee's average weekly net earnings, not to exceed 100 percent of the statewide average weekly net earnings, which amount is required to be adjusted annually to reflect changes in the statewide average weekly wage. The bill caps the duration of paid leave at 12 weeks in any application year and provides self-employed individuals the option of participating in the program. This bill is identical to SB 2.

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 5 benefits, 2 costs, 8 mixed.

Virginia workers gain paid leave coverage

Virginia must establish its paid leave program by January 1, 2028, and begin claims and payments by December 1, 2028. Coverage includes non-Commonwealth employees who meet the program’s earnings and eligibility requirements and are authorized to work when applying. Covered reasons include bonding during a child’s first year after birth, adoption, or foster placement. Leave also covers your own serious health condition that prevents work, family caregiving, service-member care, and military-related needs. Children of any age, including adult children, count for family caregiving. Leave to seek safety services for yourself or family is limited to four weeks per benefit year.

Workers get up to 12 paid weeks

Eligible workers get up to 12 weeks per benefit year, starting on the first day they qualify. Weekly benefits replace 80% of average wages, or average net earnings for covered self-employed people. The minimum is $100; workers averaging less than $100 receive their full average weekly wage. The maximum equals state average weekly net earnings, updated by September 30 for the next January 1. First payment is due within two weeks after the later of claim approval or leave starting; later payments arrive at least every two weeks. A benefit year lasts 52 weeks from leave starting, or 53 when a new claim’s earnings-period quarter overlaps an earlier claim. Claims require at least eight leave hours in one workweek unless the Commission sets a lower threshold.

False claims bring penalties and repayment

Willfully making a false statement to defraud the program brings a Class 1 misdemeanor and five-year benefit disqualification. Reckless material misstatements or willfully withholding material facts to obtain benefits bring three-year disqualification after a Commission finding. The Commission can seek repayment for benefits paid by mistake, through willful misrepresentation, or before a claim was rejected.

Self-employed workers gain coverage with waiting

Self-employed people, including sole proprietors and partners, can choose coverage by filing written notice and providing requested income information. Initial coverage lasts at least three years. Choosing coverage within 26 weeks of becoming self-employed avoids a waiting period; choosing later requires a 52-week wait for benefits. Withdrawal is allowed within 30 days after the initial period ends, or at other times the Commissioner sets. Withdrawal takes effect no sooner than 30 days after written notice.

State employees keep stronger leave benefits

Virginia must update Commonwealth employee leave policies, including parental leave, by December 1, 2028. State employee family and medical leave benefits must equal or exceed the new program’s benefits. Existing leave and benefits cannot be reduced when they are more generous.

Workers gain job protection and remedies

Benefit recipients with at least 120 days at their employer must return to the same or an equivalent job. Equivalent jobs must preserve seniority, benefits, and employment terms. Employers must maintain existing health coverage during protected leave; employees keep paying their previous share. Employers cannot interfere with leave rights, retaliate, or count program leave toward attendance discipline, including after good-faith mistaken complaints. Workers can seek lost pay, benefits, actual monetary losses, interest, usually matching additional damages, and court-ordered relief. Lawsuits generally must start within one year of the last violation, or three years for willful violations. Matching damages can be reduced for proven good faith and reasonable grounds; the labor Commissioner can investigate and pursue remedies.

Late-paying employers face interest and lawsuits

Overdue contributions accrue 1.5% monthly interest until the Commission receives the payment and accrued interest. After notice, the Commission can sue defaulting employers for contributions, interest, and penalties; employers found in default pay case costs. Individuals can face personal liability only if they knew of the failure or attempted payment and had authority to prevent it. Continued default after an unsatisfied court collection effort can lead to a ban on doing business in Virginia. The Commissioner can compromise assessed amounts, and collected interest goes into the leave fund.

Private leave plans match benefits, pay fees

Employers can use Commission-approved private plans instead of the state plan and must reapply every two years. Plans must match or exceed covered reasons, weeks, wage replacement, payment limits, intermittent leave, and rights without adding unauthorized restrictions. Worker contributions cannot be higher, and workers retain statutory rights and can appeal benefit decisions to the Commission. Self-insured employers must prove financial capacity; insured plans need qualifying approved policies, and material violations can end approval. Employers pay certification and renewal fees, reimburse Commission costs from their plans, and face fines for violations. Fees and fines go into the leave fund; the law does not specify their amounts.

Workers and employers fund paid leave

Contributions begin April 1, 2028; the law does not set a fixed contribution rate. Employers with more than 10 employees remit the full amount and deduct 50% from wages, or a smaller agreed share. Employers with 10 or fewer employees remit only the 50% employee share and owe no added employer contribution. Covered self-employed people pay the employer share and must document work authorization when contributions begin. Contributions stop at the yearly Social Security earnings limit, and deductions cannot push wages below minimum wage. Rates use actuarial estimates for 2028–2029; from 2030, rates must support a projected fund balance of at least 40% of projected spending. Annual rate decisions and financial figures are published by October 1, with adjustments effective January 1.

Workers can split paid leave schedules

Covered workers can take paid leave in separate blocks or work a reduced schedule. Benefits are prorated, and only leave actually taken counts against the total allowance. Employees must coordinate schedules with employers and reasonably try to avoid undue disruption. They must give advance schedule notice when practical.

Virginia protects leave funding and reporting

Virginia creates a dedicated trust fund for leave contributions, appropriations, and other authorized receipts. Money and interest stay in the fund for benefits, administration, and startup costs; payroll contributions cannot fund unrelated purposes. Startup appropriations must be repaid to the general fund by January 1, 2034. A public dashboard must launch by the first benefit payments and show claims, approvals, processing times, and grouped leave reasons. Annual legislative reports begin no later than April 1, 2030, covering participation, demographics, payments, rates, fund balances, and outreach.

Leave claimants provide documents with privacy

Claimants must document their leave reason: provider certification for medical claims, birth records, or dated adoption or foster-placement records. Military, service-member care, and safety claims need the documents required by law or program officials. Certifications cannot require disclosures that violate health-information privacy laws. Claim files are generally confidential; claimants or representatives can review them with signed authorization, and officials can access them for duties. Health information requires claimant permission unless disclosure is required by law. If the IRS determines benefits are federally taxable, new claimants must receive estimated-tax and withholding guidance, including changing withholding choices.

Workers get notices and must notify

Employers must explain benefits, claims, job protections, retaliation protections, and complaint rights when hiring and each year. They must provide information again when workers request leave or employers learn of plans for potentially covered leave. Workplace posters must be accessible and in English, Spanish, and languages spoken first by at least 5% of workers. Employees seeking leave must notify their employer as soon as practical. The Commission must run ongoing outreach, including to small businesses, about benefits, contributions, eligibility, and timelines. Public outreach must use English, Spanish, and languages spoken by more than 5% of Virginia’s population.

Workers keep rights while leave overlaps

State paid leave and federal family and medical leave run at the same time when both cover the leave. Employers can require coordination with disability, family-care payments, or workplace leave, but must give written notice. The law preserves more generous leave obligations, and workers cannot waive their rights under this law. Workplace policies and labor agreements adopted, retained, entered, or renewed after January 1, 2027, cannot reduce these rights. Employers and employees covered by the federal railroad unemployment insurance definitions are excluded from this program.

Leave insurers gain access, face oversight

Life insurers can also obtain licenses to sell paid family and medical leave insurance. Insurers must file policy forms and related documents with Virginia’s State Corporation Commission for required review and approval. Before delivering policies, insurers must file rate manuals showing rates, rules, and risk classifications. Agents holding only limited-lines life, health, or property-casualty authority cannot use that authority to sell private family or paid medical leave insurance.

Sponsors & Cosponsors

Sponsor

  • Briana D. Sewell

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 387 • No: 286

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 64 • No: 36

House vote • 3/13/2026

Conference report agreed to by House

Yes: 62 • No: 33

Senate vote • 3/13/2026

Conference report agreed to by Senate

Yes: 21 • No: 18

Senate vote • 3/11/2026

Senate insisted on substitute Block Vote

Yes: 40 • No: 0

House vote • 3/10/2026

Senate substitute rejected by House

Yes: 0 • No: 99

Senate vote • 3/9/2026

Passed Senate with substitute

Yes: 21 • No: 19

Senate vote • 3/9/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/9/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/6/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Reported from Finance and Appropriations with substitute

Yes: 8 • No: 5

Senate vote • 3/2/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 8 • No: 6

House vote • 2/17/2026

Read third time and passed House

Yes: 62 • No: 34

House vote • 2/13/2026

Reported from Appropriations with substitute

Yes: 15 • No: 7

House vote • 2/11/2026

Subcommittee recommends reporting with substitute

Yes: 5 • No: 2

House vote • 2/3/2026

Reported from Labor and Commerce with substitute and referred to Appropriations

Yes: 15 • No: 7

House vote • 1/29/2026

Subcommittee recommends reporting with substitute and referring to Appropriations

Yes: 5 • No: 2

Actions Timeline

  1. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (64-Y 36-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1093)

    4/22/2026Governor
  4. Reenrolled bill text (HB1207ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1093 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by House

    4/13/2026Governor
  11. Fiscal Impact Statement from Department of Planning and Budget (HB1207)

    3/31/2026House
  12. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  13. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026House
  14. Signed by Speaker

    3/31/2026House
  15. Bill text as passed House and Senate (HB1207ER)

    3/30/2026House
  16. Enrolled

    3/30/2026House
  17. Signed by President

    3/30/2026Senate
  18. Fiscal Impact Statement from Department of Planning and Budget (HB1207)

    3/17/2026House
  19. Conference report agreed to by Senate (21-Y 18-N 0-A)

    3/13/2026Senate
  20. Conference report agreed to by House (62-Y 33-N 0-A)

    3/13/2026House
  21. Conference Report released

    3/13/2026
  22. House Conferees: Sewell, Sullivan, Bloxom

    3/12/2026House
  23. Conferees appointed by House

    3/12/2026House
  24. House acceded to request

    3/12/2026House
  25. Conferees appointed by Senate

    3/12/2026Senate

Bill Text

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