January 31, 2019

Virginia House Delegate Jennifer Carroll Foy (D) introduced a bill that would provide employees with up to 12 weeks of paid family and medical leave per year for qualifying events including: birth/adoption/placement of a child in foster care; self-care or care for a family member with a serious health condition; care for a covered servicemember; and qualifying exigency leave for individuals on active duty or being called to active duty, beginning 1/1/2022. Additionally, the bill would:

• By 1/1/2021, require employers and employees to pay an unspecified payroll tax. As currently drafted, it’s unclear whether employers, employees or both would be subject to the tax;
• Pay eligible individuals up to maximum of $850 per week that would be annually adjusted to 80% of the Commonwealth’s average weekly wage;
• Permit employees to use intermittent leave, but not in an amount less than 8 hours. Employees would be required to make a “reasonable effort” to not unduly disrupt the operations of an employer;
• Not require a waiting period;
• Provide job protection to employees using leave; and
• Require leave under this act to run concurrently with FMLA leave;

Impact on Employers and Employees

Mandating paid family and medical leave limits employers’ flexibility to design leave benefits packages for their unique workforces, raises labor costs, and increases administrative burden. State differentiation of mandated paid family and medical leave provisions further exacerbates increased administrative burden.
Employees who need leave would have access to more paid leave benefits, especially to the extent that their employer does not already offer it. However, as mandated paid family and parental leave comes online employers may alter or eliminate existing leave benefits. Additionally, employers and employees are likely to face increased payroll taxes in order to fund it.

Outlook

So far, the legislation has only been introduced in the House and has failed to draw any Republican support. Both houses of Virginia’s legislature are narrowly controlled by Republicans. Governor Ralph Northam (D) would likely support the legislation if it passed the legislature. The bill has been referred to a Subcommittee of the Commerce and Labor Committee, where it could fail. Previous legislative efforts to enact paid family leave in 2018 died in Committee. 

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