[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4003 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4003
To require employers to provide paid annual leave to employees, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2024
Mr. Sanders (for himself and Mr. Padilla) introduced the following
bill; which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
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 ``Guaranteed Paid Vacation Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Commerce.--The terms ``commerce'' and ``industry or
activity affecting commerce''--
(A) mean 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
(B) include ``commerce'' and ``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)(V);
(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 subparagraphs (B),
(D), (E), or (F);
(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), who is not covered under
subparagraph (D).
(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 an
employee for each working day during
each of 20 or more calendar workweeks
in the current or preceding year;
(II) includes the Government
Accountability Office and the Library
of Congress;
(III) includes any public agency;
(IV) 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
(V) 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)(III), a public agency shall be considered
to be a person engaged in commerce or in an
industry or activity affecting commerce.
(iii) Definitions.--For 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 (29 U.S.C.
203(a)).
(III) Public agency.--The term
``public agency'' has the meaning given
such term in section 3(x) of the Fair
Labor Standards Act of 1938 (29 U.S.C.
203(x)).
(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 leave
provided on an annual basis (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 (other than nonworkdays established by State or
Federal law) in which the employee would otherwise work
and receive pay; 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) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) 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.
(7) 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 PAID 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 by the employee.
(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 earned under subsection
(a)(1) may be used by an employee for any reason.
(2) Timing.--Subject to paragraphs (2) and (3) of
subsection (c) and except as provided in subsection (d)(2), an
employee may use paid annual leave earned by the employee under
subsection (a)(1)--
(A) beginning on the 60th calendar day after the
commencement of employment of such 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.--Except as provided in subparagraph
(B), an employee using paid annual leave earned under
subsection (a)(1) 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 the paid annual
leave.
(B) Tipped employee.--For the purposes of
subparagraph (A), an employee described in section
2(2)(C) shall be compensated, for the period that such
employee is using paid annual leave earned under
subsection (a)(1), at a rate equivalent to the greater
of--
(i) the minimum wage required under section
6(a) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a));
(ii) the applicable State minimum wage; or
(iii) the applicable local minimum wage.
(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 paid annual leave
under subsection (a)(1), including before the 60th
calendar day after the commencement of employment of
such employee.
(B) Use of loaned leave.--Except as provided in
subparagraph (C), paid annual leave loaned under
subparagraph (A) shall be treated as if earned under
subsection (a)(1).
(C) Reimbursement for loaned leave.--
(i) In general.--An employer may require an
employee of such employer to reimburse the
employer for any paid annual leave loaned under
subparagraph (A) that such employee has not
earned at the time of the termination of the
employment of the employee.
(ii) Rate.--Reimbursement under clause (i)
shall be at the applicable rate described in
paragraph (3).
(5) Carryover.--An employee may use not more than 40 hours
of paid annual leave earned under subsection (a)(1) in a 12-
month period during the following 12-month period.
(c) Procedures for Use of Paid Annual Leave.--
(1) In general.--Subject to paragraphs (2) and (3), an
employee may use paid annual leave earned under subsection
(a)(1) upon the verbal or written request of the employee.
(2) Employee notification.--
(A) In general.--Except as provided in subparagraph
(B), an employer may require an employee provide the
request under paragraph (1) to the employer on a day
that is--
(i) before the day on which the employee
intends to use the paid annual leave; and
(ii) not more than 14 days before the day
on which the employee intends to use the paid
annual leave.
(B) Emergency.--Notwithstanding subparagraph (A),
an employer shall waive any notice requirement and
allow the use of paid annual leave earned under
subsection (a)(1) in the case of an emergency or a
situation in which an employee can not provide timely
notice to an employer for the use the paid annual
leave.
(3) Reasonable restrictions.--Notwithstanding paragraph
(1), an employer may--
(A) place limited, reasonable restrictions
regarding the scheduling of paid annual leave earned
under subsection (a)(1); and
(B) reject a scheduling request under paragraph (1)
for such leave for a bona fide business reason, if 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 under subsection
(a)(1).
(5) Prohibition on finding cover.--An employer may not
require, as a condition of using paid annual leave earned under
subsection (a)(1), that an employee search for or find a
replacement worker to cover the hours during which the employee
is using such paid annual leave.
(d) Procedures Regarding Leave for Employee Separation.--
(1) Reimbursement.--Upon the termination of the employment
of an employee, the employer of the employee shall provide
financial reimbursement, at the applicable rate described in
subsection (b)(3), to such employee for all paid annual leave
earned by the employee under subsection (a)(1) that is unused
as of the date of the termination.
(2) Reinstatement.--If the employment of an employee with
an employer is terminated and the employee is subsequently
rehired by the employer within 12 months after that
termination--
(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 under
subsection (a)(1) at the recommencement of employment
with the employer.
SEC. 4. NOTICE REQUIREMENTS.
(a) Notice Requirement.--An employer shall notify each employee of
the employer 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 any 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) the 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); and
(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, including a job applicant,
for exercising 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 subclause (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, under the
authority of this paragraph, 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 paragraph 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
clause (ii), an action may be brought under
this paragraph or paragraph (4) not later 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
such 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 later 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 this paragraph or
paragraph (4) for the purposes of this
subparagraph, 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)(i).
(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 such 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,
reinstatement, and promotion.
(E) Solicitor of labor.--The Solicitor of Labor may
appear for and represent the Secretary on any
litigation brought under this paragraph.
(5) 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.
(b) Employees Covered by Chapter 5 of Title 3, United States
Code.--The powers, remedies, and procedures provided in chapter 5 of
title 3, United States Code, to the President, the Merit Systems
Protection Board, or any person, alleging a violation of section
412(a)(1) of that title, shall be the powers, remedies, and procedures
this Act provides to the President, that Board, or any person,
respectively, alleging an unlawful employment practice in violation of
this Act against an employee described in section 2(2)(D).
(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)(E).
(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)(F).
(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 to 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 under subsection (a)(3), for
injunctive relief that is authorized under this Act. In such a
suit, the court may award 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 paid 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.--Except as provided in subsection (b), this Act
shall take effect 180 days after the date of enactment of this Act.
(b) Collective Bargaining Agreements.--In the case of an applicable
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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