Subcommittee advances substitute establishing state paid family medical leave insurance

Delegate Dawn M. Sewell presented a substitute on House Bill 1207 to create a state paid family medical leave insurance program administered by the Virginia Employment Commission and funded by small shared payroll contributions plus an initial treasury loan.

Sewell said the program would provide up to 12 weeks of job-protected, paid leave at roughly 80% wage replacement up to a cap and would cover care for a new child, recovery from childbirth, or serious personal or family health conditions. She framed the proposal as broadly supported by voters and as a tested model adopted by neighboring jurisdictions.

A broad coalition of labor, health, caregiving and advocacy organizations testified in favor, including AARP, SEIU, cancer and maternal-health groups and small-business employers who said paid leave helps retention. Business groups including the Virginia Chamber, airlines, retailers, manufacturers and chambers raised concerns about contribution levels, administrative burdens, and eligibility definitions; some urged narrower exemptions or structural changes.

The subcommittee adopted a substitute and reported the measure and substitute to Appropriations by a recorded vote. The measure will be reviewed for fiscal and implementation details.