[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5280 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5280
To require employers to provide paid annual leave to employees, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2026
Mr. Sanders (for himself, Mr. Murphy, Mr. Markey, Mr. Gallego, and Mr.
Padilla) introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
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 ``Guaranteed Paid Vacation Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commerce.--The terms ``commerce'' and ``industry or
activity affecting commerce''--
(A) 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
(B) include ``commerce'' and ``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;
(ii) an employee of the Government Accountability
Office; or
(iii) an employee of a covered employer described
in paragraph (3)(B)(i)(V);
(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), who is not covered under
subparagraph (C).
(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 (2 U.S.C. 1301);
(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
an 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 any public agency;
(IV) 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
(V) 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)(III), a public agency 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) Paid annual leave.--The term ``paid annual leave''--
(A) subject to subparagraph (B), means paid
vacation leave, paid personal leave, paid leave
provided on an annual basis (provided under this Act or
otherwise), or any other form of paid leave provided to
a covered employee by the employer of such covered
employee to be used during a period (other than
nonworkdays established by State or Federal law) in
which the covered employee would otherwise work; and
(B) does not include--
(i) leave provided under the Family and
Medical Leave Act of 1993 (29 U.S.C. 2601, et
seq.);
(ii) leave (paid or unpaid) that is
provided by an employer of a covered employee,
including such leave required by Federal,
State, or local law, and is--
(I) family or medical leave;
(II) sick leave;
(III) bereavement leave;
(IV) leave related to the adoption
or fostering of a child;
(V) leave related to domestic
violence, sexual assault, or stalking;
(VI) leave with respect to a public
health emergency;
(VII) leave for a holiday
established by Federal, State, or local
law; or
(VIII) leave for jury duty, for a
civic duty, or to vote; or
(iii) any absence or paid leave under
workers' compensation or a disability plan.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) FLSA definitions.--
(A) In general.--Except as provided in subparagraph
(B), the terms ``employ'', ``employee'', ``person'',
``public agency'', ``State'', and ``tipped employee''
have the meanings given the terms in section 3 of the
Fair Labor Standards Act of 1938 (29 U.S.C. 203).
(B) Employee.--For purposes of paragraph (2)(A)(i),
the term ``employee'' has meaning given the term in
section 3 of the Fair Labor Standards Act of 1938 (29
U.S.C. 203), 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).
SEC. 3. EARNED PAID ANNUAL LEAVE.
(a) Earning of Paid Annual Leave.--
(1) Earning of annual leave.--An employer shall provide
each covered employee employed by the employer not less than 1
hour of paid annual leave for every 25 hours worked by the
covered employee.
(2) Limitation.--
(A) In general.--For purposes of complying with
paragraph (1), an employer shall not be required to
provide more than 80 hours of paid annual leave to a
covered employee during any 12-month period.
(B) Greater than 80 hours of paid annual leave.--In
determining the amount of hours provided to a covered
employee for purposes of limitation under subparagraph
(A), an employer may not include--
(i) any earned and unused paid annual leave
that is carried over by the covered employee
from a previous 12-month period under
subsection (b)(5);
(ii) any leave acquired by the covered
employee through equitable relief provided
under section 6 for a violation of section 5;
or
(iii) any leave reinstated to the covered
employee under subsection (d)(2)(A).
(C) Rule of construction.--This section shall not
be construed to preclude an employer from providing
more than 80 hours of paid annual leave.
(3) Commencement of earning paid annual leave.--A covered
employee shall begin to earn paid annual leave at the
commencement of employment of such covered employee.
(4) Overtime and minimum wage exempt employee.--For
purposes of this section, a covered employee who is exempt from
overtime and minimum wage requirements under section 13(a) of
the Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)) shall
be deemed to work 40 hours in each workweek.
(b) Use of Paid Annual Leave.--
(1) In general.--Paid annual leave earned under subsection
(a)(1) may be used by a covered employee for any reason.
(2) Timing.--Subject to paragraphs (2) and (3) of
subsection (c) and except as provided in subsection (d)(2), a
covered employee may use paid annual leave earned by the
covered employee under subsection (a)(1) at any time after the
leave is earned during, except as provided in paragraph (5),
the 12-month period after the leave is earned.
(3) Rate of compensation.--
(A) In general.--Except as provided in subparagraph
(B), a covered employee using paid annual leave earned
under subsection (a)(1) shall be compensated, for the
period that the covered employee is using such leave,
at the regular rate at which the covered employee would
have been paid for such period if the covered employee
were not using the paid annual leave.
(B) Tipped employee.--For the purposes of
subparagraph (A), a covered employee who is a tipped
employee shall be compensated, for the period that such
employee is using paid annual leave earned under
subsection (a)(1), at a rate equivalent to the greater
of--
(i) the minimum wage required under section
6(a) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a));
(ii) the applicable State minimum wage;
(iii) the applicable local minimum wage;
(iv) any other wage rate required by
Federal, State, or local 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 a covered employee for use by such covered
employee in advance of the covered employee earning
such paid annual leave under subsection (a)(1).
(B) Use of loaned leave.--Except as provided in
subparagraph (C), paid annual leave loaned under
subparagraph (A) shall be treated as if earned under
subsection (a)(1).
(C) Reimbursement for loaned leave.--
(i) In general.--An employer may require a
covered employee of such employer to reimburse
the employer for any paid annual leave loaned
under subparagraph (A) that such covered
employee has not earned at the time of the
termination of the employment of the covered
employee.
(ii) Rate.--Reimbursement under clause (i)
shall be at the applicable rate described in
paragraph (3).
(5) Carryover.--An employer shall permit a covered employee
of such employer to carry over not more than 40 hours of any
earned and unused paid annual leave under subsection (a)(1) in
a 12-month period to be used by the covered employee in the
following 12-month period.
(6) Increments of use of paid annual leave.--An employer
shall allow any covered employee to use paid annual leave
earned under subsection (a)(1) in increments of the smaller
of--
(A) an hour; or
(B) the smallest increment of time that the
employer's payroll system uses to account for absences
or use of other time.
(7) Benefits retained during leave.--
(A) In general.--An employer shall maintain any
employment benefits provided to a covered employee
during any period in which the covered employee takes
paid annual leave, and such benefits shall be provided
in the same manner as if the covered employee had
continued in employment continuously for the duration
of such leave.
(B) Employment benefits.--For purposes of
subparagraph (A), the term ``employment benefits'' has
the meaning given such term in section 101 of the
Family and Medical Leave Act of 1993 (29 U.S.C. 2611),
except that a reference in such section to the terms
employee and employer shall be considered a reference
to a covered employee and employer (as such terms are
defined in section 2), respectively.
(c) Procedures for Use of Paid Annual Leave.--
(1) In general.--Subject to paragraph (3), a covered
employee may use paid annual leave earned under subsection
(a)(1) upon a verbal or written notification by the covered
employee to the employer of the covered employee as provided in
paragraph (2).
(2) Employee notification.--
(A) Format of notice.--An employer may not specify
whether the notification under paragraph (1) is
provided through a verbal notice or a written notice.
(B) Notice samples.--The Secretary shall create
samples for verbal and written notices required under
paragraph (1).
(C) Timing of notice.--A covered employee shall
provide notice regarding an intent to use paid annual
leave under paragraph (1) on a day that is--
(i) before the day on which the covered
employee intends to use the paid annual leave;
and
(ii) not more than 14 days before the day
on which the covered employee intends to use
the paid annual leave.
(D) Emergency or unforeseeable use of leave.--
Notwithstanding subparagraph (C), an employer shall
waive any notice requirement and allow the use of paid
annual leave earned under subsection (a)(1) in the case
of an emergency or a situation in which a covered
employee can not provide timely notice to an employer
for the use the paid annual leave.
(3) Reasonable restrictions.--
(A) In general.--Notwithstanding paragraph (1), an
employer may--
(i) place limited, reasonable restrictions
regarding the scheduling of paid annual leave
earned under subsection (a)(1) for a bona fide
business reason; and
(ii) reject a scheduling request under
paragraph (1) for such leave for a bona fide
business reason.
(B) Limitation on rejection.--
(i) In general.--An employer may not reject
a request by a covered employee under
subparagraph (A)(ii) unless the employer--
(I) provides other reasonable
alternative times, as described in
clause (ii), for the covered employee
to schedule such leave; and
(II) complies with the notice
requirement described in clause (iii).
(ii) Reasonable alternatives.--