NFIB State Director Julia Hammond says the association’s small business members are urging their delegates to reject House Bill 5.

The bill, filed late Monday, may be well-intentioned but would impose a costly and inflexible paid-leave mandate on small employers who are already struggling with higher operating costs, a tight labor market, and economic uncertainty, Hammond said.

“Small business owners want to take care of their employees,” she said. “But this bill goes far beyond what most small employers can realistically absorb. Mandates of this size tie owners’ hands while raising costs and making it even harder to keep the doors open.”

HB 5 dramatically expands Virginia’s paid sick leave requirements by applying them to all employers, regardless of size. It also broadens the definition of covered family members, adds to reporting and recordkeeping burdens, and creates new civil penalties and litigation exposure.

“Small businesses already operate on notoriously thin margins,” Hammond said. “One lawsuit could be enough to put a small business out of business for good.”

She said the measure is especially unfair to startups, home-based businesses, and businesses with only a handful of employees. “Unlike big corporations, small businesses don’t have and can’t afford HR departments, legal teams, and administrative staff to manage complex compliance rules and expanded liability.

“If the General Assembly really wants to help workers, they should focus more on creating an environment where Main Street businesses can grow, create jobs, and retain the people who already work for them. That means reducing regulatory burdens, controlling costs, and giving small businesses the flexibility to meet the needs of their employees.”