{"id":22751,"date":"2026-02-10T22:21:02","date_gmt":"2026-02-10T22:21:02","guid":{"rendered":"https:\/\/cloud04.titletapsites.com\/theoneboss\/?p=22751"},"modified":"2026-02-10T22:21:02","modified_gmt":"2026-02-10T22:21:02","slug":"upcoming-virginia-employment-law-changes","status":"publish","type":"post","link":"https:\/\/cloud.titletapsites.com\/theoneboss\/2026\/02\/10\/upcoming-virginia-employment-law-changes\/","title":{"rendered":"Upcoming Virginia Employment Law Changes: RetirePath, Minimum Wage, Paid Sick Leave, and Paid Family and Medical Leave"},"content":{"rendered":"<p><em>Part 3 of a 3-part series recapping this week&#8217;s BOSS Seminar, &#8220;Virginia Employment Law Update for Business Owners,&#8221; presented by Deb Collins of Yeng Collins Law, PLLC.<\/em><\/p>\n<p>Several Virginia employment law changes were enacted alongside the July 1, 2026 updates covered elsewhere in this series but take effect on a delayed schedule extending into 2029. This post summarizes RetirePath, the state minimum wage schedule, the paid sick leave mandate, and the paid family and medical leave program, along with their respective timelines.<\/p>\n<p><strong>RetirePath: Registration Timeline<\/strong><\/p>\n<p>RetirePath, established under Va. Code \u00a7 2.2-2744, is a state-administered retirement savings program for private-sector workers. Employers that do not already offer a qualifying retirement plan may be required to facilitate participation in RetirePath. The employer&#8217;s obligation is limited to making the program available; there is no requirement for the employer to contribute financially.<\/p>\n<p>Employees are eligible to participate if they are at least 18 years old, work at least 30 hours per week, and receive taxable wages in Virginia. Independent contractors and seasonal employees working fewer than 90 days per year fall outside the &#8220;eligible employee&#8221; definition, though they retain the option to open a RetirePath account independently.<\/p>\n<p><strong>Participation Threshold and Deadlines<\/strong><\/p>\n<p>The threshold for mandatory participation changed from 25 or more eligible employees to 5 or more. To be required to register, an employer must:<\/p>\n<ul>\n<li>Have 5 or more eligible employees.<\/li>\n<li>Have been operating for 2 or more years at the time of enrollment.<\/li>\n<li>Not currently offer a qualified employer-sponsored retirement plan, such as a 401(k), SIMPLE IRA, SEP IRA, or 403(b).<\/li>\n<\/ul>\n<p>Employers newly eligible in 2026 face the following deadlines:<\/p>\n<ul>\n<li>Employers with 10 to 24 employees: register and facilitate the program by September 30, 2026.<\/li>\n<li>Employers with 5 to 9 employees, or 25 or more employees: register and facilitate the program by October 30, 2026.<\/li>\n<\/ul>\n<p>Employers that were already eligible prior to 2026 had an earlier registration deadline and should have already received notification from RetirePath regarding registration or exemption certification. The program includes enforcement provisions, which may include financial penalties, for employers that do not comply. Employers uncertain of their eligibility status may want to confirm it directly rather than wait for a notice.<\/p>\n<p><strong>Minimum Wage Schedule<\/strong><\/p>\n<p>Virginia&#8217;s minimum wage, governed by Va. Code \u00a7 40.1-28.10, is currently $12.77 per hour. This compares to the federal minimum wage of $7.25 per hour, unchanged since July 24, 2009. The Virginia rate is scheduled to increase as follows:<\/p>\n<ul>\n<li>January 1, 2027: $13.75 per hour.<\/li>\n<li>January 1, 2028: $15.00 per hour.<\/li>\n<li>January 1, 2029 and thereafter: annual adjustments tied to the Consumer Price Index.<\/li>\n<\/ul>\n<p>Employers with hourly workforces may want to incorporate these scheduled increases into multi-year budget and staffing projections.<\/p>\n<p><strong>Paid Sick Leave: Phased Implementation<\/strong><\/p>\n<p>A new paid sick leave (PSL) requirement, under Va. Code \u00a7 40.1-33.3, will apply to employers on a phased schedule based on employee count:<\/p>\n<ul>\n<li>July 1, 2027: employers with at least 50 employees.<\/li>\n<li>January 1, 2028: employers with at least 25 employees.<\/li>\n<li>January 1, 2029: all employers with at least 1 employee.<\/li>\n<\/ul>\n<p>Once the law applies to a given employer, employees accrue at least 1 hour of PSL for every 30 hours worked, subject to a minimum annual cap of 40 hours. Employers have the option to frontload the full 40 hours at the start of the year rather than tracking accrual throughout the year. Unused PSL must carry over to the following calendar year.<\/p>\n<p><strong>Leave Use and Notice<\/strong><\/p>\n<p>Employees may use PSL for a range of personal and family health needs, as well as circumstances related to domestic violence, sexual assault, or stalking. Employers may request reasonable documentation for absences lasting three or more consecutive workdays. Employees are required to provide advance notice of their need to use leave, where feasible, if the employer has a written policy establishing that requirement. Employees are also expected to make reasonable efforts to schedule PSL use in a way that minimizes disruption to employer operations. Employers must provide notice of employee rights under the law, both in writing and via posting, and additional implementation and enforcement regulations are still pending.<\/p>\n<p><strong>Interaction With Existing PTO Policies<\/strong><\/p>\n<p>An employer&#8217;s existing PTO policy can satisfy the PSL mandate if it provides at least 40 hours of leave annually, usable for the same purposes and under the same conditions specified in the statute. Employers are not required to pay out accrued, unused PSL upon termination. The statute provides for civil fines and employee lawsuits, seeking unpaid leave and damages, in cases of noncompliance.<\/p>\n<p><strong>Paid Family and Medical Leave: Program Structure<\/strong><\/p>\n<p>Virginia&#8217;s Paid Family and Medical Leave (PFML) program, established under Va. Code \u00a7 60.2-800, follows a longer implementation timeline:<\/p>\n<ul>\n<li>April 1, 2028: payroll contributions begin for covered employers and employees.<\/li>\n<li>December 1, 2028: eligible employees may begin applying for and receiving benefits.<\/li>\n<\/ul>\n<p>Once active, the program will provide up to 12 weeks of paid leave annually for qualifying reasons, including welcoming a new child through birth, adoption, or foster care; recovering from a serious health condition; caring for a family member with a serious health condition; military family needs; and circumstances involving domestic violence, sexual assault, or stalking.<\/p>\n<p><strong>Funding Structure<\/strong><\/p>\n<p>PFML is funded through a public trust supported by payroll contributions from employers, employees, self-employed individuals, and other participating workers. Employers with 11 or more employees are required to remit both the employer and employee portions of the contribution, though employers may choose to cover part of the employee&#8217;s share. Employers with 10 or fewer employees are not required to pay the employer portion. Benefits under the program are structured to replace up to 80% of an employee&#8217;s average weekly wage, subject to a cap based on the state&#8217;s average weekly wage.<\/p>\n<p><strong>Eligibility<\/strong><\/p>\n<p>Eligible participants are expected to include full-time and part-time employees, employees of small businesses, and self-employed individuals who opt into the program. Specific eligibility criteria, documentation requirements, and application procedures are still being developed and will be released as the program&#8217;s implementation date approaches.<\/p>\n<p><strong>Planning Considerations<\/strong><\/p>\n<p>Each of these four programs has a distinct trigger, tied either to a calendar date or to employer headcount, and the applicable dates span from later this year through 2029. Businesses may find it useful to map these dates against their own employee counts: RetirePath registration this fall for newly eligible employers, minimum wage adjustments in payroll budgets each January through 2029, a PSL policy review ahead of the applicable 2027-2029 date based on headcount, and a review of PFML contribution requirements once additional regulatory guidance is issued closer to 2028.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several Virginia employment law changes were enacted alongside the July 1, 2026 updates covered elsewhere in this series but take effect on a delayed schedule extending into 2029.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-22751","post","type-post","status-publish","format-standard","hentry","category-virginia-employment-law-update"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - 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