Sponsors (5)
The bill broadly extends and clarifies guaranteed earned paid annual leave and strengthens enforcement and notice—improving worker pay and protections—but it also raises employer costs, administrative burdens, litigation risks, and state‑federal complexity that may be passed on to consumers, small businesses, or taxpayers.
Covered workers (including low- and middle-income employees) earn paid annual leave immediately (1 hour per 25 worked), keep health and other benefits while on leave, can carry over up to 40 hours and use loaned leave, and tipped workers receive the highest applicable rate while on leave—improving income security and access to time off.
Covered employees (broadly) gain stronger protections from discharge, discrimination, or retaliation for using or seeking paid annual leave, with a motivating-factor standard that makes retaliation claims easier to prove.
Employees (who believe their rights were violated) receive stronger enforcement tools: a private right of action, recovery of back pay/liquidated damages/equitable relief, mandatory fee-shifting for plaintiffs, and expanded Department/Secretary investigatory and subpoena powers—making remedies more accessible.
Small and other employers face higher direct labor costs (up to ~80 hours/year per employee plus benefits maintenance), which may reduce hiring, increase consumer prices, or raise taxpayer costs when public employers are affected.
Small employers and payroll/HR systems will face significant administrative and compliance burdens (tracking accruals, carryover, loaned leave, notices, pay-stub updates, recordkeeping and rehiring rules), raising operating costs and operational disruption.
Employers (especially small ones) face increased litigation risk and costs because the motivating-factor standard, fee-shifting, and a private right of action lower plaintiffs' burdens and may encourage more claims and settlements.
Based on analysis of 9 sections of legislative text.
Requires covered employers to provide paid annual leave accruing at 1 hour per 25 worked (up to 80 hours/yr), carryover, notice, anti-retaliation, and enforcement by the Department of Labor.
Official title: Require employers to provide paid annual leave to employees, and for other purposes.
Introduced August 6, 2026 by Bernard Sanders · Last progress August 6, 2026
Requires covered employers to provide paid annual leave that accrues at a rate of 1 hour for every 25 hours worked, up to 80 hours per 12-month period, with limited carryover, notice requirements, anti-retaliation protections, and enforcement by the Department of Labor. The law defines covered employers and employees, preserves stronger state/local or contract leave rights, funds a public awareness campaign, and takes effect 180 days after enactment (with a postponement rule for workplaces covered by existing collective bargaining agreements).