PTO Act

Bill Number: H.R. 4763
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Labor and Employment
Status: Introduced
Latest Action: 2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
Last Updated: 2026-07-10T08:06:09Z

AI-Generated Summary

Purpose

The Protected Time Off Act (PTO Act), H.R. 4763, establishes a federal requirement for employers to provide paid annual leave—also called paid vacation or personal leave—to most employees. This leave can be used for any reason, aiming to improve work-life balance by ensuring workers earn and use paid time off without needing to justify the purpose.

Key Provisions

Definitions:
Applies to "covered employees," including most private-sector workers, state employees (in programs receiving federal funds), federal employees, congressional staff, and employees of the Government Accountability Office (GAO) and Library of Congress.
"Employers" include any business or government entity engaged in commerce with at least one employee, including small businesses, railroads, airlines, and public agencies. It excludes applicants for jobs.
"Paid annual leave" means paid time off during regular work hours but excludes sick leave, family/medical leave (under laws like FMLA), bereavement leave, holiday leave, jury duty, or workers' compensation absences.

Earning and Accrual of Leave:
Employees earn 1 hour of paid leave for every 25 hours worked, starting from the first day of employment.
Maximum accrual is 80 hours (about 2 weeks for full-time workers) per 12-month period, though employers can offer more.
For salaried (exempt) employees not tracked by hours under the Fair Labor Standards Act (FLSA), assume 40 hours worked per week.
Employers may "loan" leave in advance, but can require repayment if the employee leaves before earning it.

Use of Leave:
Leave can be used for any reason, in small increments (e.g., hourly or the smallest unit in the employer's payroll system).
Paid at the employee's regular rate; for tipped workers, at the higher of their regular rate or applicable minimum wage (federal, state, or local).
Benefits (like health insurance) continue during leave as if the employee were working.
Employees can carry over up to 40 hours of unused leave to the next 12-month period.
Employers cannot require employees to find a replacement worker to cover the time off.

Procedures for Requesting and Scheduling Leave:
Employees provide verbal or written notice; employers cannot demand more than 2 weeks' advance notice, and no notice is needed for unexpected situations.
Employers can impose "limited, reasonable restrictions" for legitimate business needs (e.g., peak seasons) but must offer alternative dates within 30 days and provide written denial reasons within 5 business days.
Employers cannot ask for the reason for leave use.
The Department of Labor (DOL) must issue guidance within 180 days on what counts as a "bona fide business reason" or "reasonable alternative."

Leave Upon Job Separation:
Unused leave must be paid out at the higher of the employee's final regular rate or average rate over the last 3 years.
If rehired by the same employer within 12 months, excess unused leave (beyond 80 hours) is reinstated, and new accrual resumes.

Employer Requirements:
Provide written notice of the leave policy on or before an employee's first day, include it in handbooks, and post it visibly (physical or online).
Maintain a system (e.g., online portal or pay stubs) to show employees their accrued leave balance.
Include details on how to file complaints and contact DOL.

Prohibited Acts:
Employers cannot interfere with leave rights, retaliate against employees for using leave or complaining, or penalize leave use in hiring, promotions, discipline, or attendance policies.
Violations are proven if leave rights were a "motivating factor" in adverse actions, even if other reasons existed.

Enforcement:
DOL has investigative powers similar to the FLSA, including subpoenas and record-keeping requirements (limited to once per year unless investigating a complaint).
Private lawsuits allowed in federal or state court for damages (lost wages up to 80 hours' pay, interest, liquidated damages), equitable relief (e.g., reinstatement), and attorney fees.
Statute of limitations: 2 years for standard violations, 3 years for willful ones.
DOL can file suits, recover sums for affected employees (unclaimed funds go to U.S. Treasury after 3 years), and seek injunctions.
Special rules for government entities (e.g., GAO handled by Comptroller General; congressional staff under existing accountability laws).
States waive sovereign immunity (protection from lawsuits) for employees in federally funded programs.
Collective bargaining agreements (union contracts) can enforce these rights through grievances.

Other Elements:
Does not override state/local laws or contracts offering more generous leave; less protective agreements are voided to the extent they conflict.
DOL must launch a public awareness campaign within 1 year, with funding authorized as needed.
Effective 180 days after enactment; for existing union contracts, applies at expiration, amendment, or 18 months post-enactment (whichever is first).

Significant Changes to Existing Law

Introduces a nationwide minimum for paid annual leave, which currently has no federal requirement (unlike unpaid family leave under the Family and Medical Leave Act of 1993).
Expands FLSA-style protections to vacation/personal time, applying to nearly all employers (even those with just one employee), unlike some labor laws limited to larger businesses.
Adds a private right of action and retaliation protections not previously available for paid vacation.
Ties state sovereign immunity waiver to federal funding receipt, similar to civil rights laws but new for leave entitlements.
Allows carryover and payout of unused leave, standardizing practices that vary widely by state or employer policy.

Potential Impacts

On Citizens/Employees: Increases access to paid time off for rest, personal matters, or emergencies, potentially reducing burnout and improving well-being; benefits low-wage and part-time workers most, as accrual starts immediately.
On Employers: Raises costs for payroll and administration, especially for small businesses without existing policies; requires new tracking systems and could complicate scheduling in industries like retail or hospitality.
On Government Agencies: DOL gains enforcement responsibilities, similar to wage/hour oversight, with added investigative and outreach duties; federal agencies must comply for their employees.
On International Relations: No direct impact, though it may align U.S. worker protections more closely with those in other developed countries that mandate paid vacation.

Main Stakeholders Affected

Employees and Job Applicants: Gain new rights to earn, use, and get paid for leave; protected from retaliation.
Employers (Private, Public, and Government): Must provide and track leave, face potential lawsuits or DOL audits; small businesses and industries with tight staffing (e.g., railroads, airlines) may face higher burdens.
Department of Labor and Other Agencies: DOL enforces and educates; GAO, Library of Congress, and congressional offices handle internal compliance.
Labor Unions and State Governments: Unions can negotiate enhancements via contracts; states in federally funded programs lose lawsuit immunity and must ensure compliance.
Courts: Handle increased private actions and DOL suits.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens worker remedies by borrowing FLSA enforcement tools and adding liquidated damages/fee-shifting, making violations costlier for employers; the "motivating factor" standard eases proving retaliation (a lower bar than "but-for" causation in some discrimination cases).
Constitutional: The sovereign immunity waiver for states receiving federal funds could face challenges under the 11th Amendment (which protects states from federal suits), but it mirrors precedents in civil rights laws where funding conditions justify it; applies only post-enactment for new federal aid uses.
Political: Sponsored by over 30 House Democrats, it reflects progressive priorities for labor rights amid debates on work-life balance; passage could spark partisan divides, with opposition from business groups citing costs, while supporters highlight equity for underserved workers; if enacted, it would mark a major expansion of federal labor standards since the 1993 FMLA.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Magaziner, Seth [D-RI-2]

Cosponsors (86)

Rep. Adams, Alma S. [D-NC-12], Rep. Budzinski, Nikki [D-IL-13], Rep. Carson, André [D-IN-7], Rep. Casar, Greg [D-TX-35], Rep. Cleaver, Emanuel [D-MO-5], Rep. Crockett, Jasmine [D-TX-30], Rep. Davis, Danny K. [D-IL-7], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Dingell, Debbie [D-MI-6], Rep. Evans, Dwight [D-PA-3], Rep. Fields, Cleo [D-LA-6], Rep. Frost, Maxwell [D-FL-10], Rep. Garcia, Robert [D-CA-42], Rep. Garcia, Sylvia R. [D-TX-29], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Goldman, Daniel S. [D-NY-10], Rep. Gomez, Jimmy [D-CA-34], Rep. Hayes, Jahana [D-CT-5], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Hoyle, Val T. [D-OR-4], Rep. Jayapal, Pramila [D-WA-7], Rep. Khanna, Ro [D-CA-17], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Lynch, Stephen F. [D-MA-8], Rep. McGovern, James P. [D-MA-2], Rep. Menendez, Robert [D-NJ-8], Rep. Meng, Grace [D-NY-6], Rep. Mullin, Kevin [D-CA-15], Rep. Nadler, Jerrold [D-NY-12], Rep. Neguse, Joe [D-CO-2], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Omar, Ilhan [D-MN-5], Rep. Pocan, Mark [D-WI-2], Rep. Ramirez, Delia C. [D-IL-3], Rep. Sánchez, Linda T. [D-CA-38], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Titus, Dina [D-NV-1], Rep. Tlaib, Rashida [D-MI-12], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Williams, Nikema [D-GA-5], Rep. Tonko, Paul [D-NY-20], Rep. Lee, Summer L. [D-PA-12], Rep. Brownley, Julia [D-CA-26], Rep. Simon, Lateefah [D-CA-12], Rep. Tokuda, Jill N. [D-HI-2], Rep. Friedman, Laura [D-CA-30], Rep. McIver, LaMonica [D-NJ-10], Rep. McBride, Sarah [D-DE-At Large], Rep. Ansari, Yassamin [D-AZ-3] and 36 more

Recent Actions

2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
2025-07-25: Referred to the Committee on Education and Workforce, and in addition to the Committees on House Administration, Oversight and Government Reform, the Judiciary, and Transportation and Infrastructure, 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.
2025-07-25: Introduced in House
2025-07-25: Introduced in House

Bill Versions

Protected Time Off Act — issued 2025-07-25 — PDF (29 pages)