Paid Family Medical Leave Legislation and CNBC Rankings

ABBA, Steve Miller Band, and the silky disco vibe of Van McCoy

One of the more controversial pieces of legislation working its way to the Governor’s pen is SB2 - a bill to create new Paid Family Medical Leave Insurance Program.

This is not new to the folks inside Capitol Square as Governor Youngkin has already vetoed the bill.

Governor Spanberger has indicated that she will sign this legislation.

Virginia will join these states and DC who already have this program:

CNBC Ranking in BOLD

* California - 22

* Colorado - 11

* Connecticut - 28

* Delaware - 29

* Maine - 43

* Massachusetts - 20

* Maryland - 32

* Minnesota - 10

* New Jersey - 30

* New York - 23

* Oregon - 39

* Rhode Island - 49

* Washington - 14

Average CNBC Ranking - 27

Reminder - Virginia fell dramatically last year from #1 ALL THE WAY to #4. Another “I’ll never forget where I was” moment.

• SB2 creates a new payroll tax on workers, not employers, requiring every employee to pay into the Paid Family and Medical Leave program regardless of whether they ever use it.

• The tax is mandatory and not optional, meaning single, childless, or low-risk workers subsidize extended leave for others.

• Payroll deductions are likely to increase over time as claims rise and premiums hit statutory caps, based on experiences in other states.

• SB2 expands leave eligibility far beyond federal FMLA, adding at least 10 new categories, including grandparents, siblings, and people with a “close association.”

• Employees could stack state and federal leave, taking up to six months away from work, creating major staffing and operational disruptions for employers.

• Vague eligibility definitions invite abuse and make workforce planning unpredictable and difficult for businesses.

• Other states provide warning signs: Washington State paid out roughly $2 billion in benefits last year and is projected to face a $350 million deficit by 2029.

• Minnesota expects its new paid leave program to cost approximately $1.6 billion in its first year alone.

• Paid leave programs have shown signs of long-term fiscal instability, as rising claims collide with capped premiums.

• SB2 risks steering Virginia toward budget shortfalls and governance challenges already affecting other states.

• Bottom line: SB2 imposes new taxes on workers, creates compliance and staffing burdens for employers, and risks long-term fiscal harm by forcing many Virginians to fund benefits that primarily help a few.

Speaking of bottom lines…

SB2 is designed to deliver meaningful benefits, but because it relies on mandatory, pooled payroll contributions, it carries predictable risks:

• weaker cost discipline,

• diffuse accountability,

• incentive-driven cost growth,

• cross-subsidization tensions,

• crowding out of private alternatives,

• and long-term fiscal pressure.

The central policy question is not whether paid leave has value—but whether SB2’s structure adequately aligns incentives, contains costs, and maintains fairness for contributors over time.

Fiscal Impact Statement

It also adds roughly 250 employees to the Commonwealth:

Q - Do all these bills that help employees apply to political campaigns?

After all they are multi million dollar organizations that also use volunteers or interns or in actuality - free labor.

It’s reasonable to assume that minimum wages and Paid Family Medical Leave benefits should accrue to the benefit of those workers.

But I digress…on with the countdown.

Coming in at #27, that fabulous Swedish quartet, ABBA with Money, Money, Money…

At #28 the Steve Miller Band with Go on Take the Money and Run.

and the #1 song from the Summer of ‘75

THE HUSTLE!

Gotta love other people’s money…