PTO Act

This bill sets a national rule for paid annual leave. Workers earn at least 1 hour of paid time off for every 25 hours worked, capped at 80 hours a year. You start earning on your first day and can use the time for any reason. Pay is at your normal rate; tipped workers must get at least the highest applicable minimum wage or their regular rate. You can take leave in small chunks, keep your benefits while you’re out, carry over up to 40 unused hours to the next year, and you don’t have to find someone to cover your shift or explain why you’re taking time. Employers may set limited scheduling rules for real business needs, but they must offer a nearby alternative date within 30 days and reply within 5 business days; they can’t require more than two weeks’ notice, and no notice is needed when the need is unforeseeable.

Employers must tell workers about the leave policy on day one, post it, and keep a system that shows each person’s leave balance. It’s illegal to punish someone for using this leave or filing a complaint, and using leave can’t be counted against you under attendance rules. If you leave your job with unused leave, your employer must cash it out at the higher of your average rate over the last 3 years or your final rate; if you return within a year, any banked leave above 80 hours that wasn’t cashed out must be restored. Workers can sue, and the Labor Department can investigate and enforce; remedies can include lost pay (or up to 80 hours of wages if no pay was lost), interest, extra damages, and attorney fees. This sets a minimum standard—stronger state or local laws and union contracts still apply. It would take effect 180 days after it’s signed, with extra time for existing union contracts, and the Labor Department must run a public awareness campaign within a year.

• Who is affected: Employees and employers.
• What changes: Earn 1 hour per 25 hours worked (up to 80 hours/year); use for any reason; pay at your normal rate; carry over up to 40 hours; no need to find coverage or explain use; anti-retaliation; employers must share the policy and track balances; cash-out of unused leave at separation with certain reinstatement if rehired.
• When: Starts 180 days after enactment; longer timeline for existing union contracts.