Business groups support Virginia bill allowing private family leave plans

By Tyler Arnold

(The Center Square) – Senate Bill 15, sponsored by Sen. Barbara Favola, D-Arlington, passed the House unanimously, 99-0, last week after passing the Senate with strong bipartisan support, 37-2. The legislation now heads to Gov. Glenn Youngkin’s desk.

Rather than establishing a mandatory state-run paid family leave law, the legislation allows businesses to voluntarily purchase insurance plans that provide this coverage. Business groups support the legislation because it gives businesses the opportunity to provide these benefits as an incentive for workers but does not put any additional burdens on businesses that are unable to afford these benefits for employees.

“This bill is unique and the first of its kind in the country,” Julia Hammond, the Virginia state director for the National Federation of Independent Business, said in a statement. The NFIB is the largest small business association in the country.

“It’s a great example of how lawmakers can work across the aisle to get something done for small business owners that makes sense,” Hammond said. “The option for private insurance versus government mandated [programs] gives our small business owners the flexibility to provide family leave insurance for their employees. One of the biggest issues for our members right now is making sure that legislators pass sensible regulations. We are grateful that members on both sides of the aisle understand how hard it is for our mom and pop shops right now to keep their doors open.”

Robert Melvin, the director of government affairs at the Virginia Restaurant, Lodging & Travel Association, told The Center Square the legislation is a “game changer” that provides options to businesses that have not been available in the past. He said a voluntary option will allow employers to attract workers during the labor shortage and prevent the burdensome requirements of a mandatory state-run paid family leave regulation, which would have been difficult for some businesses suffering from supply chain issues and inflation.

“It will allow them to have another … benefit that they can provide to their employees,” Melvin said.

The legislation would be very helpful to the hospitality industry, which could use this new option to attract new workers into the field, Melvin said.

Some Democratic lawmakers sought to pass legislation that would have established mandatory paid family leave, but those efforts have been defeated. Senate Bill 1, sponsored by Sen. Jennifer Boysko, D-Herndon, would have established such a mandate, but the proposal was pushed back for reconsideration in 2023.