© 2024 American Payroll Institute, Inc.
Virginia Paid Family and Medical Leave Insurance Proposal
Sent to Governor
The Virginia legislature recently passed a bill (S.B. 373) which
would provide employees with up to eight weeks of paid
family and medical leave (PFML). If signed into law by the
governor, the PFML program would cover all private employers,
with limited exclusions for public employers. Contributions
would begin on January 1, 2026 benefits would be available
beginning January 1, 2027.
In addition to the state plan, employers would have the
option to apply to the Virginia Employment Commission for
private plan coverage. Self-employed individuals would also
have the option to elect coverage under the state plan if they
meet certain criteria.
Employer contributions
If the program is approved, employers would be required
to begin withholding contributions via payroll deductions from
employees beginning on January 1, 2026. The contribution
rate would be determined by the Commission by October 1,
2025, and would be adjusted annually. Future contribution
rates would take effect on the following January 1.
Employers would have to withhold and remit to the
PFML plan 50% of the contribution from employee payroll.
Employers that have 10 or more employees could cover all
or a portion of the employee’s share of the contributions as
an additional benefit but would not be required to do so. In
addition to the employee’s share, employers with 10 or more
employees would have to remit the remaining 50% of the
contributions (plus any additional agreed-upon amount) to
the plan. Employers with fewer than 10 employees would not
be required to remit any additional contributions other than
when they withhold from employees.
Employee contributions
All employees would be required to pay 50% of the
contributions, which would be deducted from their wages
each pay period. While the initial contribution rate has not
been established, the maximum amount of wages subject to
contributions would be the same as the social security wage
base, which is currently $168,600.
Weekly benefit amount, duration of leave
The average weekly wage amount would be determined
by the Commission based on the average weekly wage paid
to workers in the planning district where the employee is
located. This amount would not include fringe benefits.
Covered employees would be able to take up to 80% of their
weekly wages during the 12-month preceding leave (or 80%
of their average weekly wages if they have worked less than 12
months). Benefits would not be less than $100 per week unless
the employee’s normal wages are less than that amount. If so,
then the employee would receive their full wages in benefits.
The maximum benefits an employee could receive would be
80% of the average weekly wage. The average weekly wage
would be adjusted yearly on September 30 and become
effective on the following January 1. Benefits would not be
payable for less than eight hours of leave in a workweek.
Covered employees would be eligible for up to eight
weeks of PFML benefits. Leave could be taken continuously,
intermittently, or in the form of a reduced leave schedule. In
the case of a reduced schedule, benefits would be prorated.
Employees would have to make a reasonable effort to take
leave that does not unduly disrupt their employer’s operations
and provide notice to the extent practicable.
If the employee qualifies for both PFML and federal Family
and Medical Leave Act (FMLA) benefits, both forms of leave
would run concurrently.
Notice requirements
Employers would be required to provide notice upon
an employee’s hiring, annually to each employee, and when
an employee requests leave or when an employer knows
an employee intends to take leave that meets the eligibility
requirements for PFML. Employers would also be required to
display a poster provided by the Commission.
Coverage
Employers. All private employers would be subject to the
PFML requirements. Employers of state employees, local school
division employees, and local officers would be excluded from
the program.
Employees. The program would cover all employees
except state employees, local school division employees, and
local officers.
Types of coverage. The program would provide coverage
beginning January 1, 2027. PFML benefits could be used
to cover the birth, adoption, or placement of a new child
through foster care with the employee during the first year
with the new child. Benefits could be used to cover a serious
health condition, either of the employee or a family member.
For an employee, the serious health condition would have to
make them unable to perform the functions of their position
to qualify. Last, PFML benefits could be used to cover caring
for a service member who is the employee’s next of kin or
other family member, or when a family member is eligible for
qualifying exigency leave.
A serious health condition would be defined as: illness,
injury, impairment, pregnancy, recovery from childbirth, or
a physical or mental condition that involves inpatient care in
a health care facility or continued treatment by a heath care
March 18, 2024 Volume 26 Issue 6
Virginia Paid Family and Medical Leave Insurance Proposal
Sent to Governor
The Virginia legislature recently passed a bill (S.B. 373) which
would provide employees with up to eight weeks of paid
family and medical leave (PFML). If signed into law by the
governor, the PFML program would cover all private employers,
with limited exclusions for public employers. Contributions
would begin on January 1, 2026 benefits would be available
beginning January 1, 2027.
In addition to the state plan, employers would have the
option to apply to the Virginia Employment Commission for
private plan coverage. Self-employed individuals would also
have the option to elect coverage under the state plan if they
meet certain criteria.
Employer contributions
If the program is approved, employers would be required
to begin withholding contributions via payroll deductions from
employees beginning on January 1, 2026. The contribution
rate would be determined by the Commission by October 1,
2025, and would be adjusted annually. Future contribution
rates would take effect on the following January 1.
Employers would have to withhold and remit to the
PFML plan 50% of the contribution from employee payroll.
Employers that have 10 or more employees could cover all
or a portion of the employee’s share of the contributions as
an additional benefit but would not be required to do so. In
addition to the employee’s share, employers with 10 or more
employees would have to remit the remaining 50% of the
contributions (plus any additional agreed-upon amount) to
the plan. Employers with fewer than 10 employees would not
be required to remit any additional contributions other than
when they withhold from employees.
Employee contributions
All employees would be required to pay 50% of the
contributions, which would be deducted from their wages
each pay period. While the initial contribution rate has not
been established, the maximum amount of wages subject to
contributions would be the same as the social security wage
base, which is currently $168,600.
Weekly benefit amount, duration of leave
The average weekly wage amount would be determined
by the Commission based on the average weekly wage paid
to workers in the planning district where the employee is
located. This amount would not include fringe benefits.
Covered employees would be able to take up to 80% of their
weekly wages during the 12-month preceding leave (or 80%
of their average weekly wages if they have worked less than 12
months). Benefits would not be less than $100 per week unless
the employee’s normal wages are less than that amount. If so,
then the employee would receive their full wages in benefits.
The maximum benefits an employee could receive would be
80% of the average weekly wage. The average weekly wage
would be adjusted yearly on September 30 and become
effective on the following January 1. Benefits would not be
payable for less than eight hours of leave in a workweek.
Covered employees would be eligible for up to eight
weeks of PFML benefits. Leave could be taken continuously,
intermittently, or in the form of a reduced leave schedule. In
the case of a reduced schedule, benefits would be prorated.
Employees would have to make a reasonable effort to take
leave that does not unduly disrupt their employer’s operations
and provide notice to the extent practicable.
If the employee qualifies for both PFML and federal Family
and Medical Leave Act (FMLA) benefits, both forms of leave
would run concurrently.
Notice requirements
Employers would be required to provide notice upon
an employee’s hiring, annually to each employee, and when
an employee requests leave or when an employer knows
an employee intends to take leave that meets the eligibility
requirements for PFML. Employers would also be required to
display a poster provided by the Commission.
Coverage
Employers. All private employers would be subject to the
PFML requirements. Employers of state employees, local school
division employees, and local officers would be excluded from
the program.
Employees. The program would cover all employees
except state employees, local school division employees, and
local officers.
Types of coverage. The program would provide coverage
beginning January 1, 2027. PFML benefits could be used
to cover the birth, adoption, or placement of a new child
through foster care with the employee during the first year
with the new child. Benefits could be used to cover a serious
health condition, either of the employee or a family member.
For an employee, the serious health condition would have to
make them unable to perform the functions of their position
to qualify. Last, PFML benefits could be used to cover caring
for a service member who is the employee’s next of kin or
other family member, or when a family member is eligible for
qualifying exigency leave.
A serious health condition would be defined as: illness,
injury, impairment, pregnancy, recovery from childbirth, or
a physical or mental condition that involves inpatient care in
a health care facility or continued treatment by a heath care
March 18, 2024 Volume 26 Issue 6
