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This bill requires employers to provide paid annual leave to employees, establishes rules for earning, using, and carrying over such leave, and sets enforcement and notice requirements. It applies to most employers engaged in commerce with one or more employees for at least 20 workweeks per year, and covers most employees except certain applicants.
Sec. 2, Definitions: Defines key terms including "covered employee" (most employees of covered employers, federal employees, and certain state employees), "employer" (any person engaged in commerce with one or more employees for 20 or more workweeks, including the Government Accountability Office and Library of Congress), and "paid annual leave" (paid vacation or personal leave, excluding sick leave, family leave, bereavement leave, and other specified types).
Sec. 3, Earned annual leave: Employers must provide at least 1 hour of paid annual leave for every 25 hours worked, up to 80 hours per 12-month period. Employees begin earning leave at employment start. Leave can be used for any reason, in increments as small as hourly or the employer's smallest payroll increment. Employers may set reasonable scheduling restrictions for bona fide business reasons but must offer alternative dates within 30 days and provide written denial notice within 5 business days. Employees can carry over up to 40 unused hours to the next year. Employers cannot require disclosure of leave purpose or require employees to find replacements. Upon separation, employers must compensate for unused leave at the higher of the employee's regular rate or, for tipped employees, the applicable minimum wage.
Sec. 4, Employer notice and system requirements: Employers must notify employees in writing of the paid annual leave policy, including how to file complaints, any notice requirements, and contact information for the Secretary of Labor. Employers must also establish a system (e.g., online portal, pay stubs) to inform employees of their accrued leave.
Sec. 5, Prohibited acts: Employers cannot interfere with rights under the Act, discharge or discriminate against employees for exercising rights, use leave as a negative factor in employment actions, or count leave under no-fault attendance policies. It also prohibits retaliation for filing complaints or participating in proceedings.
Sec. 6, Enforcement and investigative authority: The Secretary of Labor has investigative authority similar to the Fair Labor Standards Act, including subpoena power. Employees can file private lawsuits for damages (lost wages, benefits, or up to 80 hours of wages, plus interest and liquidated damages) and equitable relief. The statute of limitations is 2 years (3 years for willful violations). The Secretary can also investigate complaints and bring civil actions. Special rules apply to the Government Accountability Office, Library of Congress, and employees covered by the Congressional Accountability Act.
Sec. 7, Effect on other laws and existing agreements: The Act does not supersede state or local laws that provide greater leave rights. It does not diminish obligations under contracts or collective bargaining agreements that provide greater leave, and rights under the Act cannot be diminished by any agreement.
Sec. 8, Awareness campaign: The Secretary must conduct a public awareness campaign within one year of enactment to inform the public about leave rights and resources. Necessary funds are authorized.
Sec. 9, Effective dates: The Act takes effect 180 days after enactment. For existing collective bargaining agreements, it takes effect on the earlier of the agreement's termination, amendment after the effective date, or 18 months after the effective date.
Summary of the bill text as introduced in House (Jul 25, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.