VirginiaSB22026 Regular SessionSenateWALLET

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

Sponsored By: Jennifer B. Boysko (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 HB 1207.

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 5 benefits, 1 costs, 8 mixed.

State workers get matching leave benefits

Virginia's human resources department must update Commonwealth employee leave policies by December 1, 2028. State workers must receive family and medical leave benefits at least as good as the state insurance program. These benefits come through Commonwealth leave policies rather than coverage under that program.

Workers get twelve weeks of benefits

Beginning December 1, 2028, eligible people get up to 12 weeks of benefits per benefit year, generally 52 weeks. Weekly payments replace 80% of average weekly wages, or average weekly net earnings for self-employed people, during the base period. The minimum is $100; workers averaging less than $100 weekly receive their full wage. The maximum equals 100% of state average weekly net earnings, with annual adjustments calculated by September 30 and effective January 1. The first payment is due within two weeks after claim approval or approved leave starts, whichever is later. Later payments come at least every two weeks; claims generally require at least eight hours of leave per workweek unless the Commission lowers that threshold.

Workers can recover leave violation losses

Workers can recover wages, benefits, or other compensation lost because employers violate job or anti-retaliation protections. Without those losses, workers can recover actual money losses up to 12 weeks of wages or salary. Courts can also award interest, usually an equal amount in added damages, and relief such as job restoration. Courts can reduce added damages when employers prove good faith and reasonable grounds. Lawsuits generally must start within one year of the violation, or three years for a willful violation.

Workers keep jobs and health coverage

Workers who receive program benefits and worked for their employer at least 120 days must regain the same or equivalent job. Employers must continue existing health coverage during leave; workers keep paying their usual share. Employers and others cannot deny leave rights or retaliate for requests, complaints, helping with cases, or sharing rights information. Covered leave cannot count toward absence-based discipline, and good-faith mistaken complaints are protected. Rights cannot be signed away; union agreements made or renewed and employer policies adopted or kept after January 1, 2027, cannot reduce them.

False claims bring benefit bans

Willfully lying to obtain benefits with intent to defraud is a Class 1 misdemeanor and brings a five-year benefit ban. Reckless material false statements or willfully hiding material facts to obtain benefits bring a three-year ban. The Commission can seek repayment of benefits paid by mistake, through willful misrepresentation, or before a claim is rejected.

Virginia workers gain paid leave coverage

Virginia must establish its paid leave program by January 1, 2028; claims and payments begin December 1, 2028. Workers must meet earnings requirements and be authorized to work in the United States when applying. Covered reasons include bonding within one year of birth, adoption, or foster placement; serious illness; family care; military needs; and domestic-violence safety services. Family includes listed relatives, domestic partners, and qualifying household members who depend on the worker for care. Safety leave is capped at four weeks per benefit year. Commonwealth employees and federally defined railroad employers and employees are excluded from this program. The state must launch a public dashboard when payments begin and annual reports by April 1, 2030, alongside ongoing multilingual outreach.

Self-employed coverage requires three-year commitment

Self-employed people, including sole proprietors and partners, can choose paid leave coverage through written notice and required income information. The first coverage period must last at least three years. Elections within 26 weeks of becoming self-employed have no benefit waiting period; later elections require a 52-week wait. Withdrawal is allowed within 30 days after the initial period ends, or at other times set by rule. Coverage ends no sooner than 30 days after withdrawal notice is filed.

Workers gain flexible, coordinated leave

Workers can take paid leave in smaller blocks or on a reduced schedule, with payments adjusted for time taken. Only leave actually used counts against their total entitlement. Workers must coordinate schedules with employers, give advance notice when practical, and reasonably avoid undue disruption. Leave that also qualifies under the federal Family and Medical Leave Act runs at the same time, not afterward. Employers can require coordination with employer or union disability and family-care benefits after written notice, but must preserve more generous leave obligations.

Employers can choose regulated private plans

Employers can use Commission-approved private plans instead of the state program. Plans must match or exceed state benefits, covered reasons, duration, wage replacement, intermittent leave, coverage, and rights. Employee contributions cannot be higher; workers keep job protections and benefit-appeal rights. Self-insured employers must show financial capacity, while insured plans require insurer-issued policies and Commission approval. Plans need recertification every two years, reports, benefit-change disclosures, fees, and reimbursement of administration costs. Violations can bring fines or loss of approval, including failures to pay promptly, misuse of funds, or reporting failures.

Workers pay; small employers get relief

Contributions begin April 1, 2028, with annual rates set by October 1 for the following year. Employers with more than 10 employees remit the full contribution and deduct 50% from wages, or a lower agreed share. Employers with 10 or fewer employees deduct and remit 50%, but owe no additional employer share. Deductions cannot reduce pay below minimum wage, and earnings above the annual Social Security contribution limit are exempt. Self-employed people pay the employer share on self-employment income and must document U.S. work authorization when contributions begin. From 2030, rates must support a projected fund balance of at least 40% of program spending. Employers alone owe 1.5% monthly interest on contributions they remit late.

Paid leave money stays protected

The law creates a separate state trust fund for paid leave contributions, appropriations, gifts, and interest. Unspent money stays in the fund rather than returning to the general budget. Money is limited to benefits, administration, startup costs, and repayment of state startup appropriations. Startup appropriations must be repaid to the general fund by January 1, 2034.

Claimants submit proof with privacy protections

Beginning December 1, 2028, claimants must provide proof matching their leave reason, such as medical, birth, placement, military, or safety records. Health information is confidential, with permission-based disclosure and legal exceptions. Claimants need not provide health-care-provider information when doing so breaks the cited privacy laws. If the IRS determines benefits are federally taxable, the Commission must tell new claimants about estimated taxes and withholding. Claimants can choose federal withholding at the amount set by federal tax law and later change that choice.

Workers receive notices and report leave

Employers must give written paid leave information at hiring, every year, and when workers request or appear to need qualifying leave. Notices must explain benefit amounts, claims, job and health protections, anti-discrimination rights, and complaints. Employers must post information in English, Spanish, and any first language used by at least 5% of their workforce. Workers seeking leave must notify their employer as soon as practical.

Leave insurers gain options and oversight

Life insurers can obtain annual licenses to offer paid family and medical leave insurance. Life and annuity agents can sell that coverage and private family leave insurance, but limited-lines licenses do not authorize paid family and medical leave sales. Insurers must file policy forms and applicable rate manuals; forms require written approval unless an authorized exemption applies. Out-of-state individuals with a Virginia main business location can choose resident treatment when home-state law prevents resident licensing there. Qualifying out-of-state business entities need a Virginia main business location and no resident agent license elsewhere. Nonresident agents cannot handle insurance types beyond their home-state authority when that authority is narrower than Virginia's.

Sponsors & Cosponsors

Sponsor

  • Jennifer B. Boysko

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 502 • No: 292

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 63 • No: 34

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

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 • 3/12/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote • 3/12/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote • 3/11/2026

Delegate Bloxom Floor amendment passed by

Yes: 64 • No: 35

House vote • 3/11/2026

Delegate Bloxom Floor amendment passed by

Yes: 64 • No: 35

House vote • 3/11/2026

Passed House with substitute

Yes: 64 • No: 35

House vote • 3/6/2026

Reported from Appropriations with substitute

Yes: 15 • No: 7

House vote • 3/3/2026

Reported from Labor and Commerce with substitute and referred to Appropriations

Yes: 15 • No: 7

Senate vote • 2/17/2026

Read third time and passed Senate

Yes: 21 • No: 19

Senate vote • 2/16/2026

Commerce and Labor Substitute rejected

Yes: 0 • No: 0

Senate vote • 2/16/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/13/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 35 • No: 0

Senate vote • 2/12/2026

Reported from Finance and Appropriations with substitute

Yes: 10 • No: 5

Senate vote • 2/2/2026

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

Yes: 7 • No: 6

Actions Timeline

  1. House concurred in Governor's recommendation (63-Y 34-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP0981)

    4/22/2026Governor
  4. Reenrolled bill text (SB2ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 981 (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 Senate

    4/13/2026Governor
  11. Fiscal Impact Statement from Department of Planning and Budget (SB2)

    3/31/2026Senate
  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

    3/31/2026Senate
  14. Signed by Speaker

    3/31/2026House
  15. Bill text as passed Senate and House (SB2ER)

    3/30/2026Senate
  16. Enrolled

    3/30/2026Senate
  17. Signed by President

    3/30/2026Senate
  18. Fiscal Impact Statement from Department of Planning and Budget (SB2)

    3/17/2026Senate
  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. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate
  25. House requested conference committee

    3/12/2026House

Bill Text

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