Legislation to establish a paid family and medical leave program in Virginia is moving through the General Assembly. Senate Bill 2 (SB2) and House Bill 1207 (HB1207) would create a new state-administered leave insurance program funded through payroll contributions from employers and employees.
We are deeply concerned that this proposal is neither sustainable nor workable for both employers and employees and would prefer this legislation not pass. However, these bills appear to have the support of the majority in both the House of Delegates and the State Senate, along with the Governor.
Next Steps for Members
Chamber members are encouraged to review the legislation and consider how the proposed program may affect their operations, workforce planning, and long-term financial outlook. If you believe certain provisions should be clarified or amended, please consider sharing your perspective with your elected officials and let them know how paid family and medical leave would affect your business. Constructive input from employers can help ensure that final legislation reflects operational realities. Check the Chamber’s Legislative Directory to find your representatives and click the name below to email:
- Senator Scott Surovell
- Senator Dave Marsden
- Senator Jennifer D Carroll Foy
- Senator Stella Pekarsky
- Delegate Garrett McGuire
- Delegate Paul Krizek
- Delegate Kathy Tran
- Delegate Rozia Henson
- Delegate Laura Jane Cohen
- Delegate Vivian Watts
We are partnering with the NVChamber and other business organizations to try to amend this legislation with the following proposed amendments:
1. Cap Payroll Deductions: The legislation should include a clear cap on payroll deductions for both employers and employees. Northern Virginia is home to a highly competitive labor market and a diverse business community that includes startups, small businesses, nonprofits, and large employers.
Without a statutory cap, payroll tax rates could increase unpredictably over time, creating financial uncertainty for employers and reducing take-home pay for workers.
2. Raise the Employer Coverage Threshold from 10 to 100 Employees: Current proposals exempt small businesses with less than 10 employees and we strongly recommend increasing this exemption to businesses with 100 employees.
Small businesses are the backbone of Northern Virginia’s economy. Employers with fewer than 100 employees often operate with narrow margins and limited staffing flexibility. Requiring very small businesses to absorb the administrative and operational impacts of extended leave mandates can create significant disruption, particularly when replacing specialized or skilled workers is already difficult.
3. Prohibit “Stacking” Leave with Federal FMLA: Clarify that leave under the state program may not be stacked on top of leave available under the federal Family and Medical Leave Act (FMLA).
Allowing employees to stack state and federal leave would dramatically extend total leave durations beyond what many employers can reasonably accommodate. For smaller and mid-sized employers especially, extended absences can create workflow disruptions, increased overtime costs, reduced productivity, and challenges in maintaining client service and project continuity.
Now is the time to contact your elected officials in Richmond and let them know your thoughts about paid medical and family leave.