[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4763 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4763
To require employers to provide paid annual leave to employees, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2025
Mr. Magaziner (for himself, Ms. Adams, Ms. Budzinski, Mr. Carson, Mr.
Casar, Mr. Cleaver, Ms. Crockett, Mr. Davis of Illinois, Mr. Deluzio,
Mrs. Dingell, Mr. Evans of Pennsylvania, Mr. Fields, Mr. Frost, Mr.
Garcia of California, Ms. Garcia of Texas, Mr. Garcia of Illinois, Mr.
Goldman of New York, Mr. Gomez, Mrs. Hayes, Ms. Norton, Ms. Hoyle of
Oregon, Ms. Jayapal, Mr. Khanna, Mr. Krishnamoorthi, Mr. Lynch, Mr.
McGovern, Mr. Menendez, Ms. Meng, Mr. Mullin, Mr. Nadler, Mr. Neguse,
Ms. Ocasio-Cortez, Ms. Omar, Mr. Pocan, Mrs. Ramirez, Ms. Sanchez, Ms.
Schakowsky, Ms. Stansbury, Ms. Titus, Ms. Tlaib, Mrs. Watson Coleman,
Ms. Williams of Georgia, and Mr. Tonko) introduced the following bill;
which was referred to the Committee on Education and Workforce, and in
addition to the Committees on House Administration, Oversight and
Government Reform, the Judiciary, and Transportation and
Infrastructure, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require employers to provide paid annual leave to employees, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protected Time Off Act'' or the
``PTO Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commerce.--The terms ``commerce'' and ``industry or
activity affecting commerce'' mean any activity, business, or
industry in commerce or in which a labor dispute would hinder
or obstruct commerce or the free flow of commerce, and include
``commerce'' and any ``industry affecting commerce'', as
defined in paragraphs (1) and (3) of section 501 of the Labor
Management Relations Act, 1947 (29 U.S.C. 142(1) and (3)).
(2) Covered employee.--The term ``covered employee'' means
an individual who is--
(A)(i) an employee who is not covered under any
other provision of this paragraph, except that a
reference in such section to an employer shall be
considered a reference to an employer described in
paragraph (3)(A)(i)(I);
(ii) an employee of the Government
Accountability Office; or
(iii) an employee of a covered employer
described in paragraph (3)(B)(i)(IV);
(B) a State employee described in section 304(a) of
the Government Employee Rights Act of 1991 (42 U.S.C.
2000e-16c(a)), other than an applicant for employment;
(C) a covered employee (as defined in section
411(c) of title 3, United States Code);
(D) a covered employee (as defined in section 101
of the Congressional Accountability Act of 1995 (2
U.S.C. 1301)), other than an applicant for employment;
or
(E) a Federal officer or employee covered under
subchapter V of chapter 63 of title 5, United States
Code (without regard to the limitation in section
6381(1)(B) of that title).
(3) Employer.--
(A) In general.--The term ``employer'' means any
person who is--
(i)(I) a covered employer who is not
described in any other subclause of this
clause;
(II) an entity employing a State employee
described in section 304(a) of the Government
Employee Rights Act of 1991;
(III) an employing office, as defined in
section 101 of the Congressional Accountability
Act of 1995;
(IV) an employing office, as defined in
section 411(c) of title 3, United States Code;
or
(V) an employing agency covered under
subchapter V of chapter 63 of title 5, United
States Code; and
(ii) engaged in commerce (including government), or
any industry or activity affecting commerce (including
government).
(B) Covered employer.--
(i) In general.--In subparagraph (A)(i)(I),
the term ``covered employer''--
(I) means any person engaged in
commerce or in any industry or activity
affecting commerce who employs 1 or
more employees for each working day
during each of 20 or more calendar
workweeks in the current or preceding
year;
(II) includes the Government
Accountability Office and the Library
of Congress;
(III) includes--
(aa) any person who acts,
directly or indirectly, in the
interest of an employer covered
by this clause to any of the
employees of such employer; and
(bb) any successor in
interest of such an employer;
and
(IV) includes any carrier (as such
term is defined in section 1 of the
Railway Labor Act (45 U.S.C. 151)) and
any carrier by air (as described in
section 201 of such Act (45 U.S.C.
181)).
(ii) Public agency.--For purposes of clause
(i), a public agency, as defined in section
3(x) of the Fair Labor Standards Act of 1938
(29 U.S.C. 203(x)), shall be considered to be a
person engaged in commerce or in an industry or
activity affecting commerce.
(C) Predecessors.--Any reference in this paragraph
to an employer shall include a reference to any
predecessor of such employer.
(4) FLSA definitions.--The terms ``employ'', ``employee'',
``person'', and ``State'' have the meanings given the terms in
section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C.
203).
(5) Paid annual leave.--The term ``paid annual leave''--
(A) means paid vacation leave and paid personal
leave provided to an employee by the employer of such
employee to be used during period in which the employee
would otherwise work; and
(B) does not include--
(i) paid or unpaid family and medical leave
provided by the employer or required by
Federal, State, or local law;
(ii) leave provided under the Family and
Medical Leave Act of 1993 (29 U.S.C. 2601, et
seq.);
(iii) sick leave provided by the employer
or required by Federal, State, or local law;
(iv) bereavement leave provided by the
employer or required by Federal, State or local
law;
(v) leave provided by the employer or
required by Federal State, or local law for
purposes related to adoption or fostering of a
child;
(vi) leave related to domestic violence,
sexual assault, or stalking provided by the
employer or required by Federal, State, or
local law;
(vii) leave provided by the employer or
required by Federal, State, or local law with
respect to a public health emergency;
(viii) absence or paid leave under workers'
compensation or a disability plan;
(ix) leave provided by the employer or
leave required to be provided by Federal,
State, or local law for holidays established by
Federal, State, or local law; or
(x) leave provided by the employer or
required by Federal, State, or local law for
jury duty, civic duty, or to vote.
(6) Rail carrier.--The term ``rail carrier'' has the
meaning given such term in section 10102 of title 49, United
States Code.
(7) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of Labor.
SEC. 3. EARNED ANNUAL LEAVE.
(a) Earning of Paid Annual Leave.--
(1) Earning of annual leave.--An employer shall provide
each employee employed by the employer not less than 1 hour of
paid annual leave for every 25 hours worked.
(2) Limitation.--
(A) In general.--For purposes of complying with
paragraph (1), an employer may not be required to
provide more than 80 hours of paid annual leave to an
employee during any 12-month period.
(B) Rule of construction.--Nothing in this section
may be construed to preclude an employer from providing
more than 80 hours of paid annual leave.
(3) Commencement of earning paid annual leave.--An employee
shall begin to earn paid annual leave at the commencement of
employment of such employee.
(4) Overtime exempt employee.--For purposes of this
section, where an employer is not required by the Fair Labor
Standards Act of 1938 to maintain and preserve records of hours
worked because an employee is exempt from minimum wage or
overtime requirements under such Act (29 U.S.C. 213(a)), the
employee shall be deemed to work 40 hours in each workweek.
(b) Use of Paid Annual Leave.--
(1) In general.--Paid annual leave may be used by an
employee for any reason.
(2) Timing.--Subject to paragraphs (2) and (3) of
subsection (c), an employee may use paid annual leave earned by
the employee as it is accrued.
(3) Rate of compensation.--
(A) In general.--An employee using paid annual
leave shall be compensated, for the period that the
employee is using such leave, at the regular rate at
which the employee would have been paid for such period
if the employee were not using paid annual leave.
(B) Tipped employee.--For the purposes of
subparagraph (A), with respect to a tipped employee (as
defined in section 3(t) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 203(t))), such an employee shall be
compensated, for the period that such employee is using
paid annual leave, at a rate equivalent to the higher
of--
(i) the Federal minimum wage;
(ii) the applicable State minimum wage;
(iii) the applicable local or municipal
minimum wage;
(iv) any other wage required by law; or
(v) the regular rate at which the employee
is employed.
(4) Loaning of annual leave.--
(A) Loaned leave.--An employer may loan paid annual
leave to an employee for use by such employee in
advance of the employee earning such annual leave.
(B) Reimbursement for loaned leave.--An employer
may require an employee of such employer to reimburse
the employer for any annual leave loaned under
subparagraph (A) that such employee has not earned at
the time of separation. Such reimbursement shall be at
the rate described in paragraph (3).
(5) Increments of use of paid annual leave.--An employer
shall allow employees to use paid annual leave in increments of
the smaller of--
(A) hourly increments; or
(B) the smallest increment of time that the
employer's payroll system uses to account for absences
or use of other time.
(6) Benefits retained during leave.--An employer shall
maintain any employment benefits (as defined in section 101(5)
of the Family and Medical Leave Act of 1993) provided to an
employee during any period in which the employee takes paid
annual leave, and such benefits shall be provided in the same
manner as if the employee had continued in employment
continuously for the duration of such leave.
(c) Procedures for Use of Paid Annual Leave.--
(1) In general.--Subject to paragraphs (2) and (3), an
employee may use paid annual leave upon the verbal or written
request of the employee.
(2) Employee notification.--
(A) Employee notification.--An employee shall
provide notice to the employer to use paid annual
leave.
(B) Notice described.--The Secretary shall create
sample notices for the purpose described in
subparagraph (A).
(C) Timing of notice.--An employer may not require
an employee to provide notice in excess of 2 weeks in
advance of the use of such leave.
(D) Unforeseeable use of leave.--In the case of an
unforeseeable use of leave, an employee shall not be
required to provide the notice required under
subparagraph (A).
(3) Reasonable restrictions.--
(A) In general.--An employer may place limited,
reasonable restrictions for the scheduling of paid
annual leave for a bona fide business reason and may
reject a scheduling request for such leave for a bona
fide business reason, so long as the employer--
(i) provides other reasonable alternative
times, as described in subparagraph (B), for
the employee to schedule such leave; and
(ii) and complies with the notice
requirement described in subparagraph (C).
(B) Reasonable alternatives.--A reasonable
alternative time described in this subparagraph is a
date other than the date the employee requested to use
paid annual leave that is within 30 days of such date.
(C) Denial notice.--In the case that an employer
denies a request of an employee to use paid annual
leave, the employer shall, not later than 5 business
days after the day the employee made such request,
provide to the employee a written notice--
(i) detailing the bona fide business reason
for such denial; and
(ii) that provides the reasonable
alternative time described in subparagraph (B).
(D) Can not prevent use of expiring leave.--Such
reasonable alternative time may not be offered to
prevent the use of paid annual leave that is set to
expire.
(4) Purpose of use of paid annual leave.--An employer may
not require an employee to disclose the purpose or reason for
which the employee is using paid annual leave.
(5) Carryover.--An employer shall permit an employee of
such employer to carry over up to 40 hours of any accrued and
unused paid annual leave to the following 12-month period.
(6) Prohibition on finding cover.--An employer may not
require, as a condition of taking paid annual leave, that an
employee search for or find a replacement employee to cover the
hours during which the employee is using such annual leave.
(7) Guidance.--Not later than 180 after the date of
enactment of this Act, the Secretary shall provide guidance to
employers on compliance with paragraph (3), including defining
the terms limited reasonable restriction, a bona fide business
reason, and a reasonable alternative time.
(d) Procedures Regarding Leave for Employee Separation.--
(1) Compensation.--In the case that an employee separates
from an employer and such employee has unused paid annual
leave, the employer shall provide financial compensation at a
rate that is the higher of--
(A) the average regular rate received by such
employee during the last 3 years of the employee's
employment; or
(B) the final regular rate received by the
employee.
(2) Reinstatement.--If an employee separates from
employment with an employer and is rehired within 12 months
after that separation by the same employer--
(A) in the case that the employee had paid annual
leave in excess of 80 hours that was not compensated
under paragraph (1), the employer shall reinstate such
leave for the employee; and
(B) the employee shall be entitled to use such
leave and earn additional paid annual leave at the
recommencement of employment with the employer.
SEC. 4. EMPLOYER NOTICE AND SYSTEM REQ