Virginia has enacted House Bill 5, establishing a statewide paid sick leave law that will be phased in over several years. The law creates a new article (Article 2.1:1 (§§ 40.1‑33.6:1 through 40.1‑33.6:7)) within the Virginia Code and significantly expands employee leave protections while introducing compliance obligations, enforcement mechanisms, and private litigation risk for employers.
Phased Implementation Based on Employer Size
HB 5 adopts a tiered rollout schedule based on employer size:
- July 1, 2027: Employers with 50 or more employees must comply;
- January 1, 2028: Employers with 25 or more employees become covered;
- January 1, 2029: The law applies to all employers, including those with a single employee.
This phased approach provides smaller employers additional time to prepare while establishing a clear timeline for statewide coverage.
Paid Sick Leave Accrual and Usage
Under HB 5, covered employers must provide paid sick leave that accrues at a rate of at least one hour for every 30 hours worked, up to a minimum of 40 hours per year, unless the employer chooses a higher cap.
Employees may use accrued paid sick leave for a broad range of purposes, including:
- Their own illness, injury, or medical care;
- Caring for a family member’s health condition;
- Absences related to preventive care; and
- Leave associated with domestic violence, sexual assault, or stalking, including related legal or safety‑planning needs.
The law’s broad definition of permissible uses aligns with trends in other jurisdictions requiring flexible, employee‑driven leave use.
Employer Obligations and Administrative Requirements
HB 5 directs the Commissioner of Labor and Industry to issue implementing regulations governing:
- Employee notice requirements;
- Employer recordkeeping systems; and
- Compliance and enforcement procedures.
Employers will need to establish systems to accurately track hours worked, leave accrual, usage, and carryover, and to ensure employees are properly informed of their rights.
The law includes certain limited exemptions, including for specific healthcare workers and employees covered by qualifying collective bargaining agreements, though most employers and employees will ultimately fall within its scope.
Enforcement and Private Right of Action
HB 5 introduces both administrative enforcement and private litigation risk. Employers may face civil penalties of:
- Up to $150 for a first violation;
- Up to $300 for a second violation within two years; and
- Up to $500 for subsequent violations.
In addition, employees may bring private civil actions, with potential remedies including:
- Twice the amount of unpaid sick leave;
- Double actual damages;
- Attorney fees and costs; and
- Equitable relief such as reinstatement or back pay.
Courts are also authorized to issue injunctive relief, further increasing compliance risk.
Employer Takeaway
HB 5 represents a major expansion of leave obligations in Virginia and positions the state alongside others with comprehensive paid sick leave requirements. As the law phases in beginning July 1, 2027, employers should begin preparing now by:
- Reviewing and updating leave policies and PTO structures;
- Implementing or upgrading time‑tracking and accrual systems;
- Training HR and management teams on permissible leave uses and anti‑retaliation protections; and
- Planning for increased recordkeeping and litigation exposure.
With both regulatory enforcement and a robust private right of action, early compliance planning will be critical to mitigating risk under Virginia’s new paid sick leave framework.