Virginia Paid Sick Leave Law: What Employers Need to Know

Summary — Virginia has enacted a new statewide paid sick leave law, signed by Governor Abigail Spanberger on May 20, 2026, requiring employers to provide paid sick leave to employees through a phased rollout beginning July 1, 2027. Employees will accrue one hour of paid sick leave for every 30 hours worked, up to 40 hours annually, and may use the leave for personal or family health needs, as well as issues related to domestic violence, sexual assault or stalking. The law also creates significant enforcement mechanisms, including employee lawsuits, state investigations and financial penalties for noncompliant employers.

Paid sick leave for Virginia workers was one of the most talked about employment bills in this year’s General Assembly. That is because a very similar bill passed both chambers last year, with bipartisan support, only to be vetoed by then-Governor Glenn Youngkin. Days after Governor Spanberger decisively won her election for Governor, this bill was pre-filed in the House of Delegates and the bill again quickly passed both chambers. Governor Spanberger signed it into law on May 20, 2026. 

The key aspect of the law is that, after a ramp up period, it will require all employers to provide all employees with paid sick leave. Employees will earn leave at a rate of not less than one hour of leave for every thirty hours worked. Leave will be capped at forty hours per year, and it will be carried over year-to-year, provided that the amount of leave in an employee’s leave bank will never exceed forty hours. In practice, this means that an employee may accrue up to forty hours and keep all forty hours as long as they want, but they will not start accruing new leave until they use some of those forty hours. The law provides that accrued but unused leave is forfeited at time of separation from employment. 

Employees can use this paid sick leave to address their own physical or mental illnesses, injuries, or health conditions or those of a family member. They can also use it to address the repercussions of being the victim of domestic violence, sexual assault, or stalking or to assist a family member with the same. 

The most notable change between the pre-filed version of this bill and the final version is in the definition of “employer.” Rather than immediately apply to all employers, the General Assembly opted for a phased approach. On July 1, 2027, when the law goes into effect, “employer” will only mean employers with fifty or more employees. On January 1, 2028, that threshold will drop to 25 employees. Finally, on January 1, 2029, there will be no more thresholds, and all employers, regardless of size, will be required to offer paid sick leave.

As with other Virginia employment laws, employees can sue their employers directly for alleged violations of this new paid sick leave act, and the potential financial penalties are not insignificant. If the employer loses in court, the employer must pay at least twice the amount of uncompensated sick leave to the employee, twice the amount of any actual damages suffered by the employee, and any lost wages the employee incurred. Further, the employer must pay the attorney fees and costs that the employee incurred in bringing the suit.

Alternatively, employees may file a complaint with the Commissioner of Labor and Industry, and both the Commissioner and the Attorney General of Virginia are authorized to bring proceedings against employers who violate the paid sick leave statute. Knowing violations are subject to financial penalties, which begin at $150 and increase with each successive violation.

In sum, this paid sick leave law is another victory for Virginia’s workers in a string of victories during this 2026 legislative session. It goes hand-in-hand with the paid family leave insurance program which Governor Spanberger signed into law last month, see more here. The difference with this law is that employers will be responsible for paying the employee directly as though they worked the hours for which leave was taken. The paid family leave insurance requires that employers grant employees leave for the reasons in the statute, but the benefits will be paid by the state using funds from mandatory payroll contributions. In short, this law obligates employers to create their own paid leave policies, whereas the family leave insurance benefit is managed by the Commonwealth. Furthermore, the paid family leave insurance benefit only covered a portion of the employee’s pay whereas paid sick leave is intended to cover full pay for the number of hours of leave used by the employee. Lastly, employees will begin accruing paid sick leave under this statute July 1, 2027; the paid family leave insurance benefits will not be available until December 1, 2028.