Recently, Virginia passed SB15 and HB1156 (Act), which pave the way for employers to voluntarily provide paid family leave insurance to their Virginia employees. Though insurers can currently provide paid medical leave through short-term disability policies, to the Act allows insurance companies to offer insurance for paid family leave benefits.

The Act permits insurers to offer policies to employers that provide partial income replacement to employees for:

  • The birth or adoption of a child;
  • Placement of a child with the employee for foster care;
  • Care of a family member who has a serious health condition; or
  • Circumstances arising from the employee’s family member who is an active service member (or has been notified of an impending call to active duty).

The policies can be written as an amendment or rider to a group disability policy, included in a group disability policy, or written as a separate policy.

Impact on Employers

Employers who want to provide paid family leave benefits to their Virginia employees will now have the option to purchase insurance for such benefit. More information on paid family leave insurance will likely be forthcoming.

Additional Resources

Emerald Law — Emerald is a Senior Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music, and writing non-fiction.