PTO Act

Summary#

This bill, the "Protected Time Off Act," would require covered employers to give paid annual leave to employees. Employees earn at least 1 hour of paid annual leave for every 25 hours worked, up to 80 hours in a 12-month period. Employees begin earning leave when employment starts. Employers must track leave, tell employees about the leave rules, and let employees use leave for any reason. Employers must keep benefits during leave, allow use in small time increments, and let employees carry over up to 40 unused hours to the next year. When an employee separates, employers must pay out unused leave at a specified regular rate. Employers may loan leave in advance but may require repayment if the employee leaves before earning it. Employers may impose limited, reasonable scheduling restrictions for business reasons but must offer alternative dates and provide written reasons if denying leave. The Department of Labor would enforce the law, investigate complaints, and can sue employers. Workers can also bring private lawsuits. The law would take effect 180 days after enactment and includes special rules for collective bargaining agreements and certain federal entities.

What it means for you#

  • If you are an employee covered by the bill, you would start earning paid annual leave right away at a rate of 1 hour per 25 hours worked, up to 80 hours a year. You could use the leave for any reason and would keep your job benefits while on leave. You can carry over up to 40 unused hours to the next year.
  • If you are an employer covered by the bill, you must provide the leave, keep records, notify employees about the leave policy (in writing at hire, in handbooks, and by posting), set up a system showing each employee's leave balance, and follow rules about payouts at separation. You may deny requests for bona fide business reasons but must offer reasonable alternatives and provide written notice of denials.
  • The Secretary of Labor (or other named officials for certain entities) would investigate complaints, subpoena records if needed, and may bring civil actions. Employees may sue in court and may recover lost wages, interest, liquidated damages, equitable relief, and attorney fees under the bill.

Expenses#

The bill does not provide totals for federal or private costs. It authorizes "such sums as are necessary" for a Department of Labor public awareness campaign about the leave. The bill requires employers to provide paid leave, maintain benefits during leave, and pay out unused leave at separation, which would affect employer payroll and recordkeeping, but no dollar amounts or cost estimates are included in the text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.