Sponsors (73)
Introduced July 25, 2025 by Seth Magaziner · Last progress July 25, 2025
The bill guarantees nationwide paid annual leave with enforcement mechanisms and privacy protections that expand workers' rights and predictability, while imposing new costs, administrative burdens, and litigation exposure on employers and some public entities that could be passed on to taxpayers, consumers, or workers.
Most covered employees (hourly and salaried) earn paid annual leave from day one at a fixed accrual rate (1 hour per 25 worked), can use it as it accrues, and have basic carryover/reinstatement protections—giving millions of workers predictable, guaranteed paid time off.
Employees gain stronger enforcement tools: individuals can sue to recover unpaid leave and damages (including liquidated damages and fees), the statute of limitations is lengthened for willful violations, and the Secretary has investigatory and subpoena authority—making leave rights more enforceable.
Workers may use paid annual leave for any reason without needing to disclose the purpose, and the law bars employer retaliation for use or asserting rights—protecting privacy and reducing fear of discipline or termination for taking leave.
Employers face substantial new labor and potential litigation costs from mandatory accruals, carryover, separation pay, benefit maintenance, and damages—costs that may be passed to consumers, reduce hiring, or slow wage growth.
Tracking accruals, issuing notices, maintaining records, responding to investigations, and updating HR policies create sizable administrative and compliance burdens—especially for small businesses and some state/local employers.
The bill increases litigation risk and financial exposure for employers (including liquidated damages and fee awards), and waives sovereign immunity for some state programs receiving federal funds—potentially exposing states and agencies to new lawsuits and fiscal liability.
Based on analysis of 9 sections of legislative text.
Requires most employers to provide paid annual leave accruing at 1 hour per 25 hours worked, with an 80‑hour employer obligation cap, carryover limits, notice rules, and enforcement by DOL and private suits.
Requires most employers to provide paid annual leave that employees earn at a rate of 1 hour per 25 hours worked, with an employer obligation cap of 80 hours in any 12‑month period. The law lets employees use leave as it accrues for any reason (subject to notice and reasonable scheduling rules), requires employer notices and recordkeeping, protects employees from retaliation, and creates enforcement by the Department of Labor plus a private right of action with damages and equitable relief. The rule generally takes effect 180 days after enactment, with limited timing exceptions for existing collective bargaining agreements.