What Virginia’s New Paid Sick Leave Law Means for Your Business

By: Kristen Duffeler

Virginia employers are facing one of the most significant changes to workplace leave law in more than a decade. In the 2026 legislative session, the Virginia General Assembly passed a statewide paid sick leave law that, once signed by the governor, will require most employers to provide paid sick leave to their employees. To help you navigate these updates, here is a straightforward guide to what is changing, why it matters for your business, and how to prepare so you can stay ahead of the curve.

A Shift From Limited to Broad Coverage

For years, Virginia’s paid sick leave requirement was narrow in scope. It applied primarily to home health workers under specific conditions; a modest, targeted provision that few employers outside the healthcare and home services industries needed to navigate.

That is changing. The new legislation approved by both chambers of the General Assembly in mid-March 2026 would expand paid sick leave requirements to most employees of private employers and public entities. While the bill still requires the governor’s signature before becoming law, its passage marks a significant change in how leave rights are likely to be structured in Virginia going forward.

At its core, the law requires employers to allow eligible employees to accrue paid sick leave at a rate of one hour for every 30 hours worked, with unused leave rolling over from year to year, up to a maximum of 40 hours per year unless the employer chooses a higher limit. Employers who already offer generous leave benefits can meet the new standard through their existing policies if they comply with the accrual and usage requirements.

Who Is Covered and Who Is Not

The law’s broad language means that most private employers and governmental employers are included. That said, as with many labor and employment laws, there are exceptions and special rules:

Some highly specialized categories of healthcare workers may be treated differently under separate rules, but the basic leave requirement applies broadly.
Independent contractors and certain gig workers may fall outside the definition of “employee,” depending on how the implementing regulations and legal tests are applied.
Employers who already offer leave benefits that meet or exceed the statutory requirements may be able to satisfy compliance through their current policies, but proper documentation and clear policies are essential.

Accurately identifying which employees are covered will be one of the first steps for employers. Classifying employees correctly, including distinctions like exempt versus non-exempt or salaried versus hourly, will affect how accrual, carryover, and use of leave are handled.

Accrual, Use, and Record keeping

Under the proposed law, eligible employees accrue paid sick leave as they work, at a rate tied to hours worked, with a cap on annual accrual. While straightforward in principle, the administrative implications are not trivial:

Employers must track hours worked and leave accrued separately.
Leave accrual, usage, and carryover rules need to be reflected in employee handbooks or official policies.
Employees may use paid sick leave for their own physical or mental illness, injury, treatment, or preventive care, to care for a family member with similar physical or mental health needs, or to address situations related to domestic violence, sexual assault, or stalking, including seeking medical or mental health care, counseling, legal help, relocation, or other victim services for themselves or a family member.
Anti-retaliation protections make it unlawful to discipline or penalize employees for using leave lawfully.

Maintaining accurate records of accrual and usage will be critical, particularly for businesses that have not historically tracked this information.

Steps That You Can Take Now

Even before the governor signs the bill, employers can take action to prepare:

Review current leave policies to identify gaps and determine which employees will be covered under the new rules.
Audit payroll and timekeeping systems for compliance readiness. Employers should ensure payroll and timekeeping systems can accurately track accrual and usage, whether handled internally or through a third-party provider.
Update employee handbooks and leave policies to align with the law.
Train supervisors and HR staff on documentation, accrual tracking, and anti-retaliation obligations.

Looking Ahead

This new law, once/if enacted, will standardize paid sick leave for most employees in Virginia and represents a major change for small and midsize businesses. While the changes bring additional administrative responsibilities, they also offer an opportunity to build more resilient, engaged, and supported teams. Staying proactive, updating policies, and ensuring your systems are ready will make compliance straightforward and help your business adapt smoothly.