Virginia Paid Family & Medical Leave

You know when you eat a whole large pizza all by yourself, are unbelievably full, and realize you still have a whole bag of breadsticks left to eat?

Oh… you don’t know what that’s like? Guess that’s just me. Cool.

My point is it’s overwhelming to have more when you’ve had enough. That’s true with most things. Employers can probably understand this with the various state PFML laws that have gone live in the past few years.

Employers have been munching on their own extra-large Paid Family & Medical Leave (PFML) pizza smothered in every conceivable topping. Each of the 14 PFML states has added its own piece to the PFML pizza. The employers are full, but thankfully, the pizza is seemingly close to being devoured. In the aftermath, digestion commences, and a relaxing stillness hangs in the air of the employer rec center (where these metaphorical employers hang out and eat PFML pizza, logically; think YMCA for employers).

Suddenly, a crash causes the door to fly right off its hinges. Someone forcefully kicked it in. The empty door frame reveals the state of Virginia standing powerfully with pulled back white hair that is rolled into single curls on each side of its head, Revolutionary War-style. In Virginia’s hands is a bag of PFML breadsticks to add to the employer’s meal.

All this is to say that Virginia has officially passed legislation to implement a Paid Family & Medical Leave program with contributions set to begin on 4/1/2028 and benefits available on 12/1/2028. The program will be funded via a 50/50 split of payroll contributions between employees and employers. The contribution rate has yet to be announced; however, it will be established no later than October 1, 2027. A new contribution rate will be set annually thereafter for each subsequent year.

The Virginia Employment Commission (VEC) will be responsible for the state’s administration of the program. Starting 4/1/2028, employers with 10 or more employees must deduct 50% of the contribution rate from employee wages and pay the remaining 50% themselves. Employers may pay a larger share than 50%; however, they may not charge employees more than 50%. Employers with 10 employees or fewer must only contribute the employee portion of the contribution rate.

Employers may opt for a fully insured or self-funded private plan for Virginia PFML that is compliant with the statutory requirements and approved by the VEC. A private plan employer must reapply to the commission every two years to renew the approval of their plan.

On 12/1/2028, employees will be eligible to receive up to 12 weeks of Virginia PFML benefits for the following reasons (other than safety leave, which is limited to 4 weeks):

  • To care for a new child during the first year after birth, adoption, or placement through foster care;
  • To care for a family member with a serious health condition;
  • For an individual’s own serious health condition that makes the individual unable to perform the functions of their position of employment;
  • To care for a covered service member who is the covered individual’s next of kin or other family member;
  • Qualifying exigency leave arising out of a family member of the covered individual on active duty, or an impending call or order to active duty, in the Armed Forces; or
  • To seek safety services for a covered individual or family member related to domestic violence, sexual assault, or stalking.

A Virginia PFML leave that also qualifies for unpaid leave under FMLA will run concurrently with it.

Claimants may receive up to 80% of their average weekly wages during the first four of the last five completed calendar quarters. If the employee has not completed four calendar quarters at the company, they will receive 80% of their average weekly wages in the quarters they have worked. The program has a weekly benefit cap of 100% of the state’s average weekly wage, which is planned to be updated by September 30th of each year and officially applied to benefits on January 1 of the following year. Additionally, the program benefit cannot be lower than $100 per week unless the claimant’s average weekly wage is less than that.

Employers are required to provide notice to employees upon hire, on an annual basis, and when an employee explicitly requests leave under Virginia PFML or when the employer knows that an employee’s leave may be eligible for the program benefits. The notice must include the terms under which the employees may use benefits; the amount of benefits available; the procedure for filing a claim for benefits; a statement of the right to job protection and benefits continuation; a statement that discrimination and retaliation are prohibited; and a statement that the employee has a right to file a complaint for a violation of the statute.

Additionally, a poster for the program must be displayed in English, Spanish, and any language that is the first language spoken by at least 5% of the employer’s workforce.

Maryland FAMLI Illustrative Private Plan Quoting

Would you like to potentially save money on the required contributions under Maryland’s PFML program or offer a better experience for employees? Does fear snuggle up in your heart at night, thinking about the potential deluge of claim errors that may be caused by the state’s administration of Maryland PFML? Overwhelmed by all these questions? My bad.

If you said yes to any of those questions, well, we may have some news to help evaporate that thick cloud of anxiety lounging over your head.

Insurance carriers can now offer illustrative quotes for Maryland PFML private plan coverage.

In early June, the Maryland Insurance Agency (MIA) released a bulletin providing guidance to carriers on issuing illustrative quotes for Maryland PFML fully insured and self-funded private plans. An illustrative quote means that the quoted plan is merely an estimate of the insurance product cost being proposed and not final. As of the release of the bulletin, authorized insurance carriers are only permitted to provide illustrative private plan quotes to employers. Additionally, MIA states that “insurers must provide clear disclosure that such preliminary illustrative quotes are not actual quotes, and that the final rates are subject to approval by the Administration and may be higher or lower than the illustrated rates.”

A common practice for insurance carriers is to require an employer to bundle a PFML private plan with another line of coverage, such as basic life insurance. The MIA’s bulletin announces that insurance carriers are permitted to do this for Maryland PFML private plans as long as the coverages are two distinct contracts. So, if you want a Maryland PFML private plan, purchasing an additional line of coverage may be a condition, depending on the quoting carrier.