Virginia employers should prepare for a major change to workplace leave requirements after Governor Abigail Spanberger signed Senate Bill 199 (“SB199”) into law on May 20, 2026. The new law establishes a statewide paid sick leave mandate for some employers beginning July 1, 2027.
For businesses that already provide paid time off (PTO), the impact may be minimal if current policies meet the law’s minimum standards. However, employers without formal paid sick leave policies, or those with limited PTO structures, should begin planning now for compliance.
What Does the New Law Require?
Under SB199, employees must accrue paid sick leave at a rate of:
- 1 hour of paid sick leave for every 30 hours worked
- Up to at least 40 hours (5 days) per year
The law generally applies to both full-time and part-time employees.
Employers may choose to provide more generous benefits than the law requires, and many existing PTO plans may already satisfy the minimum standards if structured appropriately.
The law phases in by employer size: employers with 50 or more employees are covered beginning July 1, 2027; employers with 25 or more employees beginning January 1, 2028; and employers with at least one employee beginning January 1, 2029.
Limited exceptions apply for certain health care workers, PRN/as-needed health care employees, rail carrier employees, and existing Longshore Act CBA situations.
What Can Employees Use Sick Leave For?
Employees may use accrued paid sick leave for a variety of qualifying reasons, including:
Personal Health Needs
- Illness or injury
- Mental health needs
- Preventive care appointments
- Medical diagnosis or treatment
Family Care
Employees may also use leave to care for family or household members experiencing health-related issues.
Safety-Related Leave
The law also permits employees to use leave for matters involving:
- Domestic violence
- Sexual assault
- Stalking
This may include time needed to seek medical care, counseling, legal services, relocation assistance, or other safety-related accommodations.
Penalties and Enforcement
Employers should also be aware that SB199 includes significant enforcement provisions for noncompliance. Employees may file complaints with the Virginia Department of Labor and Industry or pursue private legal action for alleged violations of the law, including failure to provide required leave, retaliation, or improper denial of leave usage. Potential consequences may include payment of unpaid sick leave, liquidated damages, civil penalties, attorneys’ fees, and other equitable relief. Given these potential liabilities, employers should carefully review policies, payroll systems, and recordkeeping practices well before the law’s effective dates.
What Should Employers Do Now?
Review Existing PTO Policies
Employers should determine whether current PTO or sick leave programs already satisfy:
- Minimum accrual requirements
- Eligible uses of leave
- Employee eligibility rules
Evaluate Payroll and HR Systems
Businesses may need system updates to:
- Track leave accruals
- Monitor employee balances
- Maintain required records
- Handle part-time employee calculations
Update Employee Handbooks
Policies should clearly outline:
- Accrual methods
- Procedures for requesting leave
- Documentation requirements
- Anti-retaliation protections
Assess Financial Impact
For employers that do not currently offer paid sick leave, the law may increase:
- Payroll costs
- Administrative burdens
- Scheduling and staffing challenges
Industries with large hourly or part-time workforces may experience the greatest operational impact.
Additional Guidance Expected
Virginia regulators are expected to release additional guidance before the law becomes effective, including clarification on:
- Carryover requirements
- Employer notice obligations
- Recordkeeping standards
- Enforcement procedures
Businesses should continue monitoring developments to ensure timely compliance.
How We Can Help
Our team can assist businesses with:
- PTO policy reviews
- Financial impact analysis
- Multi-state leave coordination
- M&A due diligence involving accrued leave liabilities
If you have questions about how Virginia’s new paid sick leave law may affect your business, please contact our team.