Guaranteed Paid Vacation Act

The "Guaranteed Paid Vacation Act" establishes a federal requirement for employers to provide paid annual leave to their employees. Under this Act, covered employees will earn not less than one hour of paid annual leave for every 25 hours worked , with a maximum accrual of 80 hours (equivalent to two weeks) in any 12-month period. Earning of this leave commences immediately upon employment, and employees exempt from overtime and minimum wage requirements are deemed to work 40 hours per week for calculation purposes. Employees are permitted to use their earned paid annual leave for any reason , and it must be compensated at their regular rate of pay, or at a minimum wage equivalent for tipped employees. Employers may loan leave in advance, and employees can carry over up to 40 hours of unused leave to the subsequent 12-month period. During periods of leave, employers are required to maintain all employment benefits as if the employee had continued working. To use leave, employees must provide verbal or written notice between one and fourteen days in advance, though this requirement is waived for emergencies. Employers can impose limited, reasonable restrictions on scheduling for bona fide business reasons, but must offer alternative dates and provide written denials. Crucially, employers cannot demand to know the reason for leave or require employees to find a replacement. Upon termination of employment, employers must provide financial compensation for any unused paid annual leave. If an employee is rehired within 12 months, any uncompensated leave must be reinstated. The Act prohibits employers from interfering with these rights, discriminating against employees for exercising them, or using leave as a negative factor in employment decisions. Employers are mandated to inform employees about their paid annual leave policy, including their rights and enforcement procedures, through written notices, handbooks, and conspicuous postings. They must also establish a system for employees to track their earned leave balances. The Department of Labor is tasked with investigating violations and enforcing the Act, similar to its role under the Fair Labor Standards Act. Employees also have a private right of action to sue employers for violations, seeking damages, interest, liquidated damages, and equitable relief. The Act ensures that its provisions do not supersede any state or local laws or collective bargaining agreements that offer greater paid annual leave benefits. The Secretary of Labor is directed to conduct a public awareness campaign to inform the public about these new entitlements.