An Act to amend and reenact §§ 38.2-107.2, 38.2-135, 38.2-316, and 38.2-1800 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-107.3 and by adding in Title 60.2 a chapter numbered 8, consisting of sections numbered 60.2-800 through 60.2-818, relating to paid family and medical leave insurance program established; notice requirements; civil action; penalty.
HB1207 establishes a statewide paid family and medical leave insurance program in Virginia, administered by the Virginia Employment Commission. Beginning in 2028, the program is to collect payroll contributions, and by December 1, 2028, begin paying benefits to eligible covered individuals. The bill provides up to 12 weeks of wage-replacement benefits in a benefit year for leave taken for a new child, a family member’s serious health condition, the worker’s own serious health condition, care for a covered service member, qualifying military exigency leave, or safety-related leave connected to domestic violence, sexual assault, stalking, or harassment. Benefits are generally set at 80 percent of average weekly wages, subject to minimum and maximum weekly amounts, and may be taken intermittently or on a reduced schedule.
The measure also creates a dedicated nonreverting Family and Medical Leave Insurance Trust Fund and authorizes payroll contributions to finance benefits and administration. Employers with more than 10 employees must deduct part of the contribution from employee wages and remit the full amount; smaller employers only withhold the employee share. Self-employed individuals may opt into coverage. The bill allows employers to satisfy their obligations through an approved private plan that provides benefits equal to or greater than the state program, and it sets out approval, recertification, enforcement, and appeal procedures for those private plans. It also requires notice to employees, anti-retaliation protections, job restoration and health coverage continuation, fraud penalties, confidentiality rules, and annual reporting and public dashboard requirements.
In addition to creating the new leave program in Title 60.2, HB1207 amends several insurance provisions in Title 38.2 to recognize and regulate “private family leave insurance” and “paid family and medical leave insurance” as insurance products. It expands licensing and form-filing rules so insurers and agents may sell these products, and it updates definitions for insurance producers and related license categories to include the new lines of coverage. The bill also directs the Department of Human Resource Management to align state employee leave policies with the new program, while preserving any more generous existing benefits.
The overall sentiment reflected in the voting history was mixed but ultimately supportive enough to enact the bill, with repeated narrow-to-moderate margins and several substitute versions moving through committee and floor votes. The House and Senate both approved conference and gubernatorial recommendation stages, indicating the final version was the product of significant negotiation. The close votes suggest substantial support for creating paid leave, but also meaningful concern about the program’s design and cost.
The main points of contention appear to have been the scope and financing of the program, the role of private plans, and the employer contribution structure. The bill requires payroll deductions and employer remittances, which likely drove opposition from some members concerned about business costs and administrative burden. Other debated issues likely included eligibility standards, the inclusion of domestic partners and safety-related leave, the treatment of self-employed workers, and the extent of state oversight versus private insurance alternatives. The final enactment suggests these issues were resolved through compromise rather than consensus.
HB1207 adds a new chapter to Title 60.2 creating a paid family and medical leave insurance program and amends Title 38.2 to authorize and regulate related insurance products. It imposes new obligations on employers, establishes a state trust fund and payroll contribution system, creates benefit and enforcement rights for covered individuals, and requires the Virginia Employment Commission to administer claims, appeals, reporting, and program rules. It also affects insurers, producers, and employers offering private plans by adding filing, licensing, and approval requirements for private family and medical leave insurance.
The bill’s voting history shows a divided but ultimately successful effort to enact paid family and medical leave. It advanced through committees and floor votes with several substitute versions and relatively close margins, indicating substantial support but also significant reservations. The final conference report and gubernatorial recommendations were adopted, suggesting the enacted version reflected compromise among supporters and skeptics.
The most notable disagreements centered on whether Virginia should create a mandatory payroll-funded leave program, how much employers should contribute, and how much flexibility should be given to private employer plans. Opponents likely focused on cost, administrative complexity, and potential burdens on businesses, especially smaller employers, while supporters emphasized wage replacement, family caregiving, medical leave, and protections against retaliation. Additional areas of debate likely included eligibility rules, benefit duration and amount, and the inclusion of leave for domestic violence-related safety services and military exigencies.