Virginia Employers Brace For Expanded Paid Sick Leave Requirements

Takeaways

• A new Virginia law expands paid sick leave to nearly all employees, with phased coverage beginning 07/01/27.
• Employees accrue at least one hour of paid sick leave for every 30 hours worked (up to 40 hours annually), with carryover required and expanded permissible uses.
• Employers should review and update leave policies and payroll systems as well as prepare for new notice and compliance requirements.

Article

Virginia’s 2026 General Assembly was one of the busiest seasons for employers. A bill expanding paid sick leave requirements to nearly all Virginia employees by 2029 was signed by Gov. Abigail Spanberger on May 20, 2026.

Virginia first adopted paid sick leave requirements in 2021 (Virginia’s Paid Sick Leave Law) for home health workers. Now, SB199/HB5 will significantly expand coverage to all employees of private employers and state and local governments as follows:

• Beginning July 1, 2027 – Employers with at least 50 employees 
• Beginning Jan. 1, 2028 – Employers with at least 25 employees 
• Beginning Jan. 1, 2029 – All employers with at least one employee

Accrual, Carryover, Permitted Uses

Covered employees must accrue a minimum of one hour of paid sick leave for every 30 hours worked, beginning at hire. Although accrued but unused leave must carry over to the following year, employers need not allow employees to accrue or use more than 40 hours of paid sick leave in a year, unless the employer elects to offer a higher cap. The reasons for the use of leave are expanded to include services related to domestic violence, sexual assault, or stalking.

Employers may also satisfy the accrual requirement by frontloading the full 40 hours at the beginning of the year.

Notice

When the use of paid sick leave is foreseeable, an employee must make a good faith effort to provide notice of the need for such leave in advance. Additionally, an employee must make a reasonable effort to schedule the use of paid sick leave in a manner that does not unduly disrupt the operations of the employer.

If an employer requires notice of the need to use paid sick leave, the employer must provide a written policy that contains procedures for its employees to provide such notice. If an employer does not provide a copy of its written policy for providing such notice to an employee, it may not deny paid sick leave to the employee based on noncompliance with such a policy.

An employer must provide notice to employees of their rights under the law, both in writing and through a posting. Regulations on implementation and enforcement are expected.

Employers may require reasonable documentation for absences of at least three consecutive workdays.

Existing PTO Policies, Pay Out

An employer’s existing paid time off policies may satisfy these requirements if they provide at least 40 hours of leave usable for the same purposes and on the same conditions as the statute.

Employers are not required to pay out accrued but unused paid sick leave at termination.

Takeaways for Employers

Virginia employers should review their leave and accommodation policies, adopt their practices to the new requirements, assess payroll readiness, and monitor coming agency guidance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.