Virginia lawmakers have sent a paid family and medical leave bill to Gov. Abigail Spanberger after final votes on March 13, setting up what would be the state’s first statewide paid leave insurance program. The bill would allow eligible workers to take up to 12 weeks of leave, with weekly benefits set at 80% of average wages, capped at the statewide average weekly wage.
The bill’s structure matters for smaller employers because it uses a payroll-funded state insurance model rather than requiring businesses to keep paying workers directly while they are out. Employers with 10 or fewer employees would still withhold the employee share of contributions, but they would not have to pay the employer share.
The bill covers caregiving, a worker’s own health condition, and a broad definition of family
Under the conference version, benefits would be available for a new child, a worker’s own serious health condition, care for a family member with a serious health condition, certain military-related needs, and other covered situations. The bill’s family definition extends beyond spouses, children, and parents to include siblings, grandparents, grandchildren, and people whose relationship is “the equivalent of a family relationship.”
Workers who use the program would have job-restoration rights and continued health coverage during leave. The bill also bars employers from treating covered leave as an absence that can trigger discipline or another adverse action.
Payroll contributions would begin in 2028, but the rollout timeline still needs a final read
The program would be run by the Virginia Employment Commission, with contributions starting April 1, 2028. The conference bill text says the commission must begin receiving claims and paying benefits by December 1, 2028.
The state’s fiscal impact statement, however, flags a drafting inconsistency: one section cites January 1, 2029, while another cites December 1, 2028. That same fiscal review estimates about $77.5 million in startup costs in fiscal 2027 and $39.0 million in fiscal 2028 for administration, with benefit payments projected at about $1.1 billion in fiscal 2029 and roughly $2.1 billion by fiscal 2031.
Spanberger has backed paid leave, but premium rates are yet to come
Spanberger backed paid family leave during the 2025 campaign and folded it into her 2026 affordability agenda, making a signature more likely than under former Gov. Glenn Youngkin, who vetoed earlier versions. What remains open is the premium rate employers and workers will actually pay: the fiscal statement says the commission would set contributions using actuarial principles, and VEC estimated that supporting the bill’s benefit level would require premiums of about 0.72% of wages, split between employers and employees unless the small-employer exemption applies.