We previously detailed the increase in state and local legislation for paid sick leave in our blog post, Payroll Best Practices for Managing Paid Sick Leave. Since then, paid sick leave mandates have continued to expand across the United States, with new laws taking effect in Alaska and Nebraska in 2025 and Connecticut broadening coverage requirements beginning in 2026.
On May 20, 2026, Virginia joined the trend by enacting a universal statewide paid sick leave program. By the time the law is fully implemented, it will extend paid sick days to an estimated 1.2 million private-sector and public-sector workers across Virginia who currently lack coverage.
Recognizing that an immediate, universal mandate could strain small business operations, Virginia is rolling out the new paid sick leave law using a multi-year, phased approach based on employer size:
50 employees or more: July 1, 2027
25-49 employees: January 1, 2028
1-24 employees: January 1, 2029
Here are some of the rules that Virginia employers will have to follow under this new law:
1 to 30 Rule: Employees must accrue a minimum of one hour of paid sick leave for every 30 hours worked, beginning on their very first day of employment.
The 40 Hour Cap: Employers are allowed to limit an employee’s total annual accrual and usage to 40 hours per year, though businesses can choose to offer higher limits.
The Frontloading Alternative: To bypass tracking hourly accruals on every weekly paycheck, employers can choose to frontload the entire 40 hours of paid sick leave at the start of each calendar year.
No Termination Payout Required: Unlike standard vacation time in certain states, Virginia employers do not legally have to pay out accrued, unused paid sick leave balances when an employee quits or is terminated. However, if a separated employee is rehired within 12 months, their old unused sick leave balance must be completely reinstated.
The new law does not just protect an individual worker when they catch a cold. Employees can also utilize their accrued sick time to care for family members including children, parents, spouses, grandparents, grandchildren, and siblings.
Beyond standard medical visits, preventative care, and physical or mental illnesses, Virginia's law also allows employees to use their sick time as Safe Leave. If the employee or their family member is a victim of domestic violence, sexual assault, or stalking, they can use their sick time to relocate, seek legal advice, visit counseling centers, or work with victim aid services.
1) Review Current PTO Policies: If you already offer a comprehensive PTO policy of 40+ hours, you may not need to grant extra time, but your handbook must be updated to state that those 40 hours can be used for the same family and safe leave purposes outlined by the law.
2) Coordinate with Payroll: Ensure your time-tracking systems are configured to accurately track, accumulate, and roll over hourly balances based on your company's upcoming compliance tier deadline.
3) Verify Notice Policies: Ensure you provide employees with written procedures on how to request leave. Under the law, if you fail to distribute a clear, written notice policy to an employee, you cannot legally deny them sick leave for failing to notify you properly.
Please let us know if you have any questions about paid sick leave or choosing the best payroll and HR software for your business. We’re happy to help!
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📧 Email us at payroll@paysteady.com