Sponsors (67)
Introduced July 25, 2025 by Seth Magaziner · Last progress July 25, 2025
The bill establishes a broad federal paid-annual-leave entitlement with clearer coverage, enforcement, and worker protections—benefiting many workers—while imposing meaningful compliance, administrative, and litigation costs on employers, states, and taxpayers and creating transitional and bargaining tensions.
Most workers (including low- and middle-income employees and tipped workers) will earn paid annual leave (1 hour per 25 worked), can use it as earned, carry over limited hours, and regain leave on rehire, providing predictable pay protection and work–life flexibility.
Federal employees, transportation workers (rail/air), GAO and Library of Congress staff, and many government contractors get clearer, statutory coverage and aligned definitions that reduce uncertainty about who is protected.
Employees can obtain enforcement and remedies (private suits, recovered back pay and liquidated damages, equitable relief), and the Department/Secretary has investigative and subpoena powers to enforce compliance.
Small businesses, employers, and potentially taxpayers will face higher direct labor and benefit costs from mandatory paid leave, continuation of benefits, and possible monetary liabilities (back pay, liquidated damages, interest).
Small employers and workplaces without modern payroll systems will incur substantial administrative burdens and costs to track accruals, update handbooks/postings, implement portals or pay-stub reporting, and maintain extra records.
Employers (and states) face expanded litigation risk because of a lower motivating-factor retaliation standard, mandatory attorney-fee awards for prevailing plaintiffs, and exposure to damages and penalties, which may increase suits and legal costs.
Based on analysis of 9 sections of legislative text.
Requires covered employers to provide paid annual leave at at least 1 hour per 25 hours worked (up to 80 hours/year), plus notice, anti-retaliation, carryover, payout, DOL enforcement, and private remedies.
Requires covered employers (private and public) to provide paid annual leave that accrues at a rate of at least 1 hour per 25 hours worked, up to 80 hours in a 12‑month period. The law requires employers to notify employees of the policy, track accruals, permit use as leave is earned (with limited reasonable scheduling rules), allow limited carryover and payout at separation, and prohibits retaliation for using leave. Enforcement is through the Department of Labor (investigations, subpoenas) and a private right of action with damages, liquidated damages, and fee-shifting. The law takes effect 180 days after enactment, with special timing rules for existing collective bargaining agreements.