Virginia Paid Family & Medical Leave: What Business Owners Should Know

Virginia has enacted a new Paid Family & Medical Leave program, with payroll contributions scheduled to begin in 2028 and benefits becoming available later that year.

This is not something business owners need to change immediately, but it is worth paying attention to now—especially if you have employees, run payroll, or operate in multiple jurisdictions like Virginia, DC, and Maryland.

What the Program Is Designed to Do

At a high level, Virginia’s program is designed to provide paid time off and job protection when employees face major life events.

Based on guidance from the Virginia Employment Commission, covered situations include:

• Caring for a new child after birth, adoption, or foster placement
• Recovering from a serious health condition
• Caring for a family member with a serious health condition
• Certain military family needs
• Situations involving domestic violence, sexual assault, or stalking

Key Dates Business Owners Should Know

The timeline matters because the payroll side starts before employees can actually use the benefit.

• 2026–2027: Program development
• April 1, 2028: Payroll contributions begin
• December 1, 2028: Benefits become available

So while this is not urgent today, it should eventually become part of payroll planning and compliance review.

How Much Leave and Pay?

The program is expected to provide eligible workers up to 12 weeks of paid leave.

The benefit is expected to replace approximately 80% of weekly wages, subject to a cap tied to the statewide average weekly wage.

As a current reference point, Virginia’s 2026 average weekly wage figure is $1,507.01 per week, though the actual cap used when benefits begin may be updated before 2028.

How This Compares to DC

Washington, DC is a useful comparison because DC already has a paid family leave system funded through payroll tax.

DC’s current Paid Family Leave tax rate is 0.75% of covered wages, paid by employers.

That means the rough annual cost looks like this:

• $100,000 of covered wages → approximately $750
• $1,000,000 of covered wages → approximately $7,500
• $5,000,000 of covered wages → approximately $37,500

Virginia has not finalized its contribution rate yet, but the important point is that this will become another payroll-related cost and compliance item for employers. One potential strategy we recommend review is the employee benefit package. If Virginia is covering PFL – employers will have less need or demand to offer the pricey Short Term Disability coverage. Cancelling this coverage could make up for 1/3 of the projected annual cost (based on DC figures).

What This Means for Employers

For business owners, the practical impact is less about the benefit itself and more about payroll administration.

Employers should expect this to eventually involve:

• Payroll withholding and contribution reporting
• Coordination with payroll providers
• Employee notices or communication requirements
• Review of existing leave or disability policies
• Additional compliance tracking for multi-state employers

This is especially relevant for employers with workers in both Virginia and DC, since the two systems may eventually need to be managed side by side.

Final Thoughts

Virginia’s PFML program is not something that requires immediate action, but it is something business owners should understand before payroll contributions begin.

The big takeaway is simple: this is another example of payroll compliance becoming more complex, especially for businesses operating across multiple jurisdictions.