Effective July 1, 2027, paid sick leave (PSL) benefits for most employees will take effect in Virginia [H.B. 5/S.B. 199, L. 2026]. Employees will be entitled to take up to 40 hours of PSL per year.
The law will phase in coverage for small employers. Effective July 1, 2027, employers with 50 or more employees will be covered. Effective January 1, 2028, employers with 25 or more employees will be covered. Effective January 1, 2029, employers with one or more employees will be covered.
Employers in certain industries are excluded from coverage, including employers of home health care workers covered by the preexisting PSL law.
Employees will accrue 1 hour of PSL for every 30 hours worked and may accrue up to 40 hours in a year. Any accrued and unused PSL will carry over from one year to the next. Employers may also front-load an employee’s expected accrual for the year.
PSL is paid at the regular rate that the employee would receive for overtime. The employee must receive at least the minimum wage without any deductions for a tip credit.
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Lorelei Abernathy, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for PayrollOrg.