[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7752 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 7752

To require employers to provide paid annual leave to employees, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2024

Mr. Magaziner (for himself, Ms. Budzinski, Mr. Casar, Ms. Crockett, Ms. 
  Adams, Mr. Amo, Mr. Bowman, Mr. Carson, Mr. Davis of Illinois, Mr. 
 Deluzio, Ms. Escobar, Mr. Robert Garcia of California, Ms. Garcia of 
 Texas, Mr. Garcia of Illinois, Mr. Goldman of New York, Mr. Grijalva, 
Ms. Hoyle of Oregon, Mr. Huffman, Mr. Jackson of Illinois, Ms. Jayapal, 
   Mr. Khanna, Ms. Lee of Pennsylvania, Mr. Lynch, Mr. McGovern, Mr. 
 Menendez, Mr. Mullin, Mr. Nadler, Mr. Neguse, Ms. Norton, Ms. Ocasio-
Cortez, Ms. Omar, Mr. Pocan, Mrs. Ramirez, Ms. Salinas, Ms. Schakowsky, 
   Mr. Schiff, Ms. Stansbury, Ms. Titus, Ms. Tlaib, Ms. Tokuda, Mrs. 
 Trahan, Mrs. Watson Coleman, and Ms. Williams of Georgia) introduced 
 the following bill; which was referred to the Committee on Education 
 and the Workforce, and in addition to the Committees on Oversight and 
       Accountability, House Administration, Transportation and 
  Infrastructure, and the Judiciary, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To require employers to provide paid annual leave to employees, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protected Time Off Act'' or the 
``PTO Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commerce.--The terms ``commerce'' and ``industry or 
        activity affecting commerce'' means any activity, business, or 
        industry in commerce or in which a labor dispute would hinder 
        or obstruct commerce or the free flow of commerce, and include 
        ``commerce'' and any ``industry affecting commerce'', as 
        defined in paragraphs (1) and (3) of section 501 of the Labor 
        Management Relations Act, 1947 (29 U.S.C. 142(1) and (3)).
            (2) Employee.--The term ``employee'' means an individual 
        who is--
                    (A)(i) an employee (as defined in section 3(e) of 
                the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)) 
                who is not covered under any other provision of this 
                paragraph, including an employee of the Library of 
                Congress, except that a reference in such section to an 
                employer shall be considered a reference to an employer 
                described in paragraph (3)(A)(i)(I);
                            (ii) an employee of the Government 
                        Accountability Office; or
                            (iii) an employee of a covered employer 
                        described in paragraph (3)(B)(i)(IV);
                    (B) a State employee described in section 304(a) of 
                the Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16c(a)), other than an applicant for employment;
                    (C) a tipped employee, as defined in section 3(t) 
                of the Fair Labor Standards Act of 1938 (29 U.S.C. 
                203(t)), who is not covered under any other provision 
                of this paragraph;
                    (D) a covered employee, as defined in section 
                411(c) of title 3, United States Code;
                    (E) a covered employee, as defined in section 101 
                of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1301), other than an applicant for employment; 
                or
                    (F) a Federal officer or employee covered under 
                subchapter V of chapter 63 of title 5, United States 
                Code (without regard to the limitation in section 
                6381(1)(B) of that title).
            (3) Employer.--
                    (A) In general.--The term ``employer'' means a 
                person who is--
                            (i)(I) a covered employer who is not 
                        described in any other subclause of this 
                        clause;
                            (II) an entity employing a State employee 
                        described in section 304(a) of the Government 
                        Employee Rights Act of 1991;
                            (III) an employing office, as defined in 
                        section 101 of the Congressional Accountability 
                        Act of 1995;
                            (IV) an employing office, as defined in 
                        section 411(c) of title 3, United States Code; 
                        or
                            (V) an employing agency covered under 
                        subchapter V of chapter 63 of title 5, United 
                        States Code; and
                    (ii) engaged in commerce (including government), or 
                an industry or activity affecting commerce (including 
                government).
                    (B) Covered employer.--
                            (i) In general.--In subparagraph (A)(i)(I), 
                        the term ``covered employer''--
                                    (I) means any person engaged in 
                                commerce or in any industry or activity 
                                affecting commerce who employs 1 or 
                                more employees for each working day 
                                during each of 20 or more calendar 
                                workweeks in the current or preceding 
                                year;
                                    (II) means the Government 
                                Accountability Office and the Library 
                                of Congress;
                                    (III) includes--
                                            (aa) any person who acts, 
                                        directly or indirectly, in the 
                                        interest of an employer covered 
                                        by this clause to any of the 
                                        employees of such employer; and
                                            (bb) any successor in 
                                        interest of such an employer; 
                                        and
                                    (IV) includes any carrier (as such 
                                term is defined in section 1 of the 
                                Railway Labor Act (45 U.S.C. 151)) and 
                                any carrier by air (as described in 
                                section 201 of such Act (45 U.S.C. 
                                181).
                            (ii) Public agency.--For purposes of clause 
                        (i), a public agency, as defined in section 
                        3(x) of the Fair Labor Standards Act of 1938 
                        (29 U.S.C. 203(x)), shall be considered to be a 
                        person engaged in commerce or in an industry or 
                        activity affecting commerce.
                            (iii) Definitions.--For the purposes of 
                        this subparagraph:
                                    (I) Employee.--The term 
                                ``employee'' has the meaning given such 
                                term in section 3(e) of the Fair Labor 
                                Standards Act of 1938 (29 U.S.C. 
                                203(e)).
                                    (II) Person.--The term ``person'' 
                                has the meaning given such term in 
                                section 3(a) of the Fair Labor 
                                Standards Act of 1938 (20 U.S.C. 
                                203(a)).
                    (C) Predecessors.--Any reference in this paragraph 
                to an employer shall include a reference to any 
                predecessor of such employer.
            (4) Paid annual leave.--The term ``paid annual leave''--
                    (A) subject to subparagraph (B), means paid 
                vacation leave, paid personal leave, paid annual leave 
                (provided under this Act or otherwise), or any other 
                form of paid leave provided to an employee by the 
                employer of such employee to be used on days in which 
                the employee would otherwise work and receive pay, and 
                such days are exclusive of nonworkdays established by 
                State or Federal law; and
                    (B) does not include--
                            (i) leave provided under the Family and 
                        Medical Leave Act of 1993 (29 U.S.C. 2601, et 
                        seq.); or
                            (ii) any form of sick leave.
            (5) Rail carrier.--The term ``rail carrier'' has the 
        meaning given such term in section 10102 of title 49, United 
        States Code.
            (6) Secretary.--Unless otherwise specified, the term 
        ``Secretary'' means the Secretary of Labor.
            (7) Sick leave.--The term ``sick leave'' means leave 
        provided to an employee by the employer of such employee for 
        reasons such as personal medical needs, family care or 
        bereavement, care of a family member with a serious health 
        condition, or adoption-related purposes, including leave 
        required to be provided for such reasons under State or Federal 
        law.
            (8) State.--The term ``State'' has the meaning given the 
        term in section 3 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203).

SEC. 3. EARNED ANNUAL LEAVE.

    (a) Earning of Paid Annual Leave.--
            (1) Earning of annual leave.--An employer shall provide 
        each employee employed by the employer not less than 1 hour of 
        paid annual leave for every 25 hours worked.
            (2) Limit.--For purposes of complying with paragraph (1), 
        an employer shall not be required to provide more than 80 hours 
        of paid annual leave to an employee during any 12-month period.
            (3) Commencement of earning paid annual leave.--An employee 
        shall begin to earn paid annual leave at the commencement of 
        employment of such employee.
            (4) Overtime exempt employee.--For purposes of this 
        section, an employee who is exempt from overtime requirements 
        under section 13(a)(1) of the Fair Labor Standards Act of 1938 
        (29 U.S.C. 213(a)(1)) shall be deemed to work 40 hours in each 
        workweek.
    (b) Use of Paid Annual Leave.--
            (1) In general.--Paid annual leave may be used by an 
        employee for any reason.
            (2) Timing.--Subject to paragraphs (2) and (3) of 
        subsection (c), an employee may use paid annual leave earned by 
        the employee--
                    (A) beginning on the 60th calendar day after the 
                first date of employment of the employee; or
                    (B) at any time before such calendar day at the 
                discretion of the employer of such employee.
            (3) Rate of compensation.--
                    (A) In general.--An employee using paid annual 
                leave shall be compensated, for the period that the 
                employee is using such leave, at the same rate at which 
                the employee would have been paid for such period if 
                the employee were not using paid annual leave.
                    (B) Tipped employee.--For the purposes of 
                subparagraph (A), with respect to a tipped employee, 
                such an employee shall be compensated, for the period 
                that such employee is using paid annual leave, at a 
                rate equivalent to the Federal minimum wage, the 
                applicable State minimum wage, or the applicable 
                municipal minimum wage, whichever is higher.
            (4) Loaning of annual leave.--
                    (A) Loaned leave.--An employer may loan paid annual 
                leave to an employee for use by such employee in 
                advance of the employee earning such annual leave, 
                including before the 60th calendar day after the first 
                date of employment of the employee.
                    (B) Reimbursement for loaned leave.--An employer 
                may require an employee of such employer to reimburse 
                the employer for any annual leave loaned under 
                subparagraph (A) that such employee has not earned at 
                the time of separation. Such reimbursement will be at 
                the rate described in paragraph (3).
    (c) Procedures for Use of Paid Annual Leave.--
            (1) In general.--Subject to paragraphs (2) and (3), an 
        employee may use paid annual leave upon the verbal or written 
        request of the employee.
            (2) Employee notification.--
                    (A) In general.--An employer may require an 
                employee to provide notice to the employer to use paid 
                annual leave.
                    (B) Timing of notice.--An employer may not require 
                an employee to provide notice in excess of 2 weeks in 
                advance of the use of such leave.
                    (C) Emergency.--In the case of an emergency or 
                situation where an employee can not provide timely 
                notice to an employer for the use of paid annual leave, 
                the employer may except any notice requirement and 
                allow the use of such leave.
            (3) Reasonable restrictions.--An employer may place 
        limited, reasonable restrictions regarding the scheduling of 
        paid annual leave and may reject a scheduling request for such 
        leave for a bona fide business reason, so long as the employer 
        provides other reasonable alternative times for the employee to 
        schedule such leave.
            (4) Purpose of use of paid annual leave.--An employer may 
        not require an employee to disclose the purpose or reason for 
        which the employee is using paid annual leave.
            (5) Carryover.--An employer shall permit an employee of 
        such employer to use up to 40 hours of unused paid annual leave 
        provided to the employee during a 12-month period during the 
        following 12-month period.
            (6) Prohibition on finding cover.--An employer may not 
        require, as a condition of providing paid annual leave, that an 
        employee search for or find a replacement employee to cover the 
        hours during which the employee is using such annual leave.
    (d) Procedures Regarding Leave for Employee Separation.--
            (1) Reimbursement.--Upon an employee separating from an 
        employer, the employer shall provide financial reimbursement, 
        at the rate described in subsection (b)(3), to such employee 
        for all unused paid annual leave of the employee.
            (2) Reinstatement.--If an employee is separated from 
        employment with an employer and is rehired, within 12 months 
        after that separation, by the same employer--
                    (A) the employer shall reinstate the employee's 
                previously earned paid annual leave; and
                    (B) the employee shall be entitled to use such 
                leave and earn additional paid annual leave at the 
                recommencement of employment with the employer.

SEC. 4. NOTICE REQUIREMENTS.

    (a) Notice Requirement.--An employer shall notify each employee 
about the paid annual leave policy of such employer, which shall 
include the information described in subsection (b), by--
            (1) providing such information, in writing, to each 
        employee on or before the first day of employment of such 
        employee;
            (2) including such information in the employee handbook; 
        and
            (3) posting a notice containing such information in a 
        physical conspicuous place on the premises of the employer or a 
        virtual conspicuous place, where notices to employees are 
        customarily posted.
    (b) Contents.--The information provided pursuant to subsection (a) 
shall include--
            (1) any paid annual leave policy of such employer, 
        including any paid annual leave policy that provides paid 
        annual leave in excess of the requirements of this Act;
            (2) information pertaining to the filing of an action under 
        section 6;
            (3) details of any notice requirement the employer may 
        require, as described in section 3(c)(2);
            (4) information regarding--
                    (A) the protections that an employee has in 
                exercising rights under this Act; and
                    (B) how the employee can contact the Secretary (or 
                other appropriate authority as described in section 6) 
                if any such rights are violated.

SEC. 5. PROHIBITED ACTS.

    (a) Interference With Rights.--It shall be unlawful for any 
employer to interfere with, restrain, or deny the exercise of, or the 
attempt to exercise, any right provided under this Act, including--
            (1) discharging or discriminating against (including 
        retaliating against) any individual for exercising, including a 
        job applicant, or attempting to exercise, any right provided 
        under this Act;
            (2) using the taking of paid annual leave as a negative 
        factor in an employment action, such as hiring, promotion, 
        reducing hours or numbers of shifts, or a disciplinary action; 
        or
            (3) counting paid annual leave under a no-fault attendance 
        policy or any other absence-control policy.
    (b) Interference With Proceedings or Inquiries.--It shall be 
unlawful for any person to discharge or in any other manner 
discriminate against (including retaliating against) any individual, 
including a job applicant, because such individual--
            (1) has filed an action under section 6, or has instituted 
        or caused to be instituted any proceeding, under this Act;
            (2) has given, or intends to give, any information in 
        connection with any inquiry or proceeding relating to any right 
        provided under this Act; or
            (3) has testified, or intends to testify, in any inquiry or 
        proceeding relating to any right provided under this Act.

SEC. 6. ENFORCEMENT AND INVESTIGATIVE AUTHORITY.

    (a) In General.--
            (1) Definition.--In this subsection--
                    (A) the term ``employee'' means an employee 
                described in subparagraph (A), (B), or (C) of section 
                2(2); and
                    (B) the term ``employer'' means an employer 
                described in subclauses (I) or (II) of section 
                2(3)(A)(i).
            (2) Investigative authority.--
                    (A) In general.--To ensure compliance with this 
                Act, or any regulation or order issued under this Act, 
                the Secretary shall have, subject to subparagraph (C), 
                the investigative authority provided under section 
                11(a) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 211(a)), with respect to employers, employees, 
                and other individuals affected by an employer.
                    (B) Obligation to keep and preserve records.--An 
                employer shall make, keep, and preserve records 
                pertaining to compliance with this Act in accordance 
                with section 11(c) of the Fair Labor Standards Act of 
                1938 (29 U.S.C. 211(c)) and in accordance with 
                regulations prescribed by the Secretary.
                    (C) Required submissions generally limited to an 
                annual basis.--The Secretary may not require an 
                employer to submit to the Secretary any books or 
                records more than once during any 12-month period, 
                unless the Secretary has reasonable cause to believe 
                there may exist a violation of this act or any 
                regulation or order issued pursuant to this Act, or is 
                investigating a charge pursuant to paragraph (4).
                    (D) Subpoena authority.--For the purposes of any 
                investigation provided for in this paragraph, the 
                Secretary shall have the subpoena authority provided 
                for under section 9 of the Fair Labor Standards Act of 
                1938 (29 U.S.C. 209).
            (3) Private right of action.--
                    (A) In general.--An action to recover damages or 
                equitable relief prescribed in subparagraph (B) may be 
                maintained against any employer in any Federal or State 
                court of competent jurisdiction by an employee or 
                individual or a representative for and on behalf of--
                            (i) the employee or individual; or
                            (ii) the employee or individual and others 
                        similarly situated.
                    (B) Liability.--Any employer who violates section 5 
                (including a violation relating to rights provided 
                under section 3) shall be liable to any employee or 
                individual affected--
                            (i) for damages equal to--
                                    (I) the amount of--
                                            (aa) any wages, salary, 
                                        employment benefits, or other 
                                        compensation denied or lost by 
                                        reason of the violation; or
                                            (bb) in a case in which 
                                        wages, salary, employment 
                                        benefits, or other compensation 
                                        have not been denied or lost, 
                                        any actual monetary losses 
                                        sustained as a direct result of 
                                        the violation up to a sum equal 
                                        to 80 hours of wages or salary 
                                        for the employee or individual;
                                    (II) the interest on the amount 
                                described in subclause (I) calculated 
                                at the prevailing rate; and
                                    (III) an additional amount as 
                                liquidated damages; and
                            (ii) for such equitable relief as may be 
                        appropriate, including employment, 
                        reinstatement, and promotion.
                    (C) Fees and costs.--The court in an action under 
                this subsection shall, in addition to any judgment 
                awarded to the plaintiff, allow a reasonable attorney's 
                fee, reasonable expert witness fees, and other costs to 
                be paid by the defendant.
                    (D) Limitations.--
                            (i) In general.--Except as provided in 
                        subparagraph (B), an action may be brought 
                        under paragraph (2) or (3) not more than 2 
                        years after the date of the last event 
                        constituting the alleged violation for which 
                        the action is brought.
                            (ii) Willful violation.--In the case of an 
                        action brought for a willful violation of 
                        section 5 (including a willful violation 
                        relating to rights provided under section 3), 
                        such action may be brought not more than 3 
                        years after the last event constituting the 
                        alleged violation for which such action is 
                        brought.
                            (iii) Commencement.--In determining when an 
                        action is commenced under paragraph (2) or (3) 
                        for the purposes of this subsection, the action 
                        shall be considered to be commenced on the date 
                        when the complaint is filed.
            (4) Actions by the secretary.--
                    (A) Administrative actions.--The Secretary shall 
                receive, investigate, and attempt to resolve complaints 
                of violations of section 5 in the same manner that the 
                Secretary receives, investigates, and attempts to 
                resolve complaints of violations of sections 6 and 7 of 
                the Fair Labor Standards Act of 1938 (29 U.S.C. 206 and 
                207).
                    (B) Civil action.--The Secretary may bring an 
                action in any court of competent jurisdiction to 
                recover the damages described in subsection (a)(3)(B).
                    (C) Sums recovered.--Any sums recovered by the 
                Secretary pursuant to subparagraph (B) shall be held in 
                a special deposit account and shall be paid, on order 
                of the Secretary, directly to each employee or 
                individual affected. Any sums not paid to an employee 
                or individual affected because of the inability to do 
                so within a period of 3 years shall be deposited into 
                the Treasury of the United States as miscellaneous 
                receipts.
                    (D) Action for injunction by secretary.--The 
                district courts of the United States shall have 
                jurisdiction, for cause shown, in an action brought by 
                the Secretary--
                            (i) to restrain violations of section 5 
                        (including a violation relating to rights 
                        provided under section 3), including the 
                        restraint of any withholding of wages, salary, 
                        employment benefits, or other compensation, 
                        plus interest, found by the court to be due to 
                        employees or individuals eligible under this 
                        Act; or
                            (ii) to award such other equitable relief 
                        as may be appropriate, including employment, 
                        reinstatements, and promotion.
                    (E) Solicitor of labor.--The Solicitor of Labor may 
                appear for an represent the Secretary on any litigation 
                brought under this subsection.
    (b) Government Accountability Office and Library of Congress.--
Notwithstanding any other provision of this section, in the case of the 
Government Accountability Office and the Library of Congress, the 
authority of the Secretary under this subsection shall be exercised 
respectively by the Comptroller General of the United States and the 
Librarian of Congress.
    (c) Employees Covered by Congressional Accountability Act of 
1995.--The powers, remedies, and procedures provided in the 
Congressional Accountability Act of 1995 (2 U.S.C. 1301 et seq.) to the 
Board (as defined in section 101 of that Act (2 U.S.C. 1301)), or any 
person, alleging a violation of section 202(a)(1) of that Act (2 U.S.C. 
1312(a)(1)) shall be the powers, remedies, and procedures this Act 
provides to that Board, or any person, alleging an unlawful employment 
practice in violation of this Act against an employee described in 
section 2(2)(D).
    (d) Employees Covered by Chapter 63 of Title 5, United States 
Code.--The powers, remedies, and procedures provided in title 5, United 
States Code, to an employing agency, provided in chapter 12 of that 
title to the Merit Systems Protection Board, or provided in that title 
to any person, alleging a violation of chapter 63 of that title, shall 
be the powers, remedies, and procedures this Act provides to that 
agency, that Board, or any person, respectively, alleging an unlawful 
employment practice in violation of this Act against an employee 
described in section 2(2)(E).
    (e) Remedies for State Employees.--
            (1) Waiver of sovereign immunity.--A State's receipt or use 
        of Federal financial assistance for any program or activity of 
        a State shall constitute a waiver of sovereign immunity, under 
        the 11th Amendment of the Constitution or otherwise, to a suit 
        brought by an employee of that program or activity under this 
        Act for equitable, legal, or other relief authorized under this 
        Act.
            (2) Official capacity.--An official of a State may be sued 
        in the official capacity of the official by any employee who 
        has complied with the procedures of subsection (a)(3), for 
        injunctive relief that is authorized under this Act. In such a 
        suit, the court may to the prevailing party those costs 
        authorized by section 722 of the Revised Statutes (42 U.S.C. 
        1988).
            (3) Applicability.--With respect to a particular program or 
        activity, paragraph (1) applies to conduct occurring on or 
        after the day, after the date of enactment of this Act, on 
        which a State first receives or uses Federal financial 
        assistance for that program or activity.
            (4) Program or activity defined.--In this subsection, the 
        term ``program or activity'' has the meaning given the term in 
        section 606 of the Civil Rights Act of 1964 (42 U.S.C. 2000d-
        4a).

SEC. 7. EFFECT ON EXISTING EMPLOYMENT BENEFITS.

    (a) More Protective.--Nothing in this Act shall be construed to 
diminish the obligation of an employer to comply with any contract, 
collective bargaining agreement, or any employment benefit program or 
plan that provides greater paid annual leave or other leave rights to 
employees or individuals than the rights established under this Act.
    (b) Less Protective.--The rights established for employees under 
this Act shall not be diminished by any contract, collective bargaining 
agreement, or any employment program or plan.

SEC. 8. AWARENESS CAMPAIGN.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall carry out a public awareness campaign 
to inform the public about the earned annual leave entitlement 
established under this Act, which shall include information about--
            (1) the rights provided to an employee under this Act; and
            (2) resources available to an employee if the employee 
        believes the rights provided under this act have been violated.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 9. EFFECTIVE DATES.

    (a) Effective Date.--This Act, and the amendment made by this Act, 
shall take effect 180 days after the date of enactment of this Act.
    (b) Collective Bargaining Agreements.--In the case of a collective 
bargaining agreement in effect on the effective date prescribed under 
subsection (a), the Act shall take effect on the earlier of--
            (1) the date of the termination of such agreement;
            (2) the date of any amendment, made on or after such 
        effective date, to such agreement; or
            (3) the date that occurs 18 months after such effective 
        date.
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