By Keiter CPAs
Employers should begin preparing for phased implementation
Virginia recently enacted legislation expanding paid sick leave requirements to most workers across the Commonwealth. The new law builds on Virginia’s existing paid sick leave requirements for home health workers and creates a broader statewide standard for private employers, as well as state and local governments.
The law will be phased in over time based on employer size.
- Businesses with at least 50 employees must comply by July 1, 2027
- Businesses with at least 25 employees must comply by January 1, 2028
- All businesses with at least one employee must comply by January 1, 2029
Under the new law, covered employees will generally accrue paid sick leave at a rate of one hour for every 30 hours worked, up to 40 hours per year. Employers may also be able to satisfy the requirement through existing paid time off policies if those policies meet or exceed the law’s requirements.
Paid sick leave may be used for an employee’s own health needs, to care for certain family or household members, and for certain circumstances related to domestic violence, sexual assault, or stalking.
Key considerations for employers
Although implementation is still more than a year away for larger employers, organizations should begin reviewing their current leave and paid time off policies to determine whether changes may be needed.
Employers may also want to evaluate payroll and HR systems to confirm they can track accruals, carryover, usage, and notice requirements. Businesses with employees in multiple states should also consider how Virginia’s new requirements may interact with existing state-specific leave policies.
Because additional implementation guidance is expected, employers should monitor future updates and work with legal counsel or an employment advisor before making significant policy changes.
Preparing for what is ahead
As the law moves toward implementation, employers can take several preliminary steps, including:
- Reviewing current paid time off and sick leave policies
- Evaluating how leave accruals are currently tracked
- Identifying which employee groups may be affected as the law phases in
- Monitoring guidance from state agencies
- Consulting with legal counsel regarding compliance obligations
Virginia’s expanded paid sick leave law represents another significant change for employers in the Commonwealth. While more guidance is expected, early planning can help organizations better understand potential operational, payroll, and compliance impacts.
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.