The bill, designated as Substitute House Bill No. 5468 (File No. 373), mandates that starting from October 1, 2024, employers are required to provide a minimum of twelve months' notice to employees before implementing any changes to the company's policy regarding the payment for unused accrued paid leave upon an employee's separation from employment. The term "paid leave" is defined to include compensatory time, vacation time, personal days off, or any other form of paid time off. The bill does not specify the method by which employers must give notice nor does it include an enforcement mechanism for non-compliance.

The fiscal impact statement accompanying the bill clarifies that there is no anticipated fiscal impact on the state or municipalities, as the bill does not specify any enforcement mechanism. The bill is set to take effect on October 1, 2024, and has been rewritten for clarity by the Legislative Commissioners. The Labor and Public Employees Committee has reported favorably on the bill with a majority vote.