(B) the smallest increment of time that the 
employer’s payroll system uses to account for 
absences or use of other time. 
(6) BENEFITS RETAINED DURING LEAVE.—An 
employer shall maintain any employment benefits 
(as defined in section 101(5) of the Family and 
Medical Leave Act of 1993) provided to an employee 
during any period in which the employee takes paid 
annual leave, and such benefits shall be provided in 
the same manner as if the employee had continued 
in employment continuously for the duration of such 
leave. 
(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) EMPLOYEE
NOTIFICATION.—An em-
ployee shall provide notice to the employer to 
use paid annual leave. 
(B) NOTICE
DESCRIBED.—The Secretary 
shall create sample notices for the purpose de-
scribed in subparagraph (A). 
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(C) 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. 
(D) UNFORESEEABLE USE OF LEAVE.—In 
the case of an unforeseeable use of leave, an 
employee shall not be required to provide the 
notice required under subparagraph (A). 
(3) REASONABLE RESTRICTIONS.— 
(A) IN GENERAL.—An employer may place 
limited, reasonable restrictions for the sched-
uling of paid annual leave for a bona fide busi-
ness reason and may reject a scheduling request 
for such leave for a bona fide business reason, 
so long as the employer— 
(i) provides other reasonable alter-
native times, as described in subparagraph 
(B), for the employee to schedule such 
leave; and 
(ii) and complies with the notice re-
quirement described in subparagraph (C). 
(B) REASONABLE ALTERNATIVES.—A rea-
sonable alternative time described in this sub-
paragraph is a date other than the date the em-
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ployee requested to use paid annual leave that 
is within 30 days of such date. 
(C) DENIAL NOTICE.—In the case that an 
employer denies a request of an employee to use 
paid annual leave, the employer shall, not later 
than 5 business days after the day the employee 
made such request, provide to the employee a 
written notice— 
(i) detailing the bona fide business 
reason for such denial; and 
(ii) that provides the reasonable alter-
native time described in subparagraph (B). 
(D) CAN NOT PREVENT USE OF EXPIRING 
LEAVE.—Such reasonable alternative time may 
not be offered to prevent the use of paid annual 
leave that is set to expire. 
(4) PURPOSE
OF
USE
OF
PAID
ANNUAL 
LEAVE.—An employer may not require an employee 
to disclose the purpose or reason for which the em-
ployee is using paid annual leave. 
(5) CARRYOVER.—An employer shall permit an 
employee of such employer to carry over up to 40 
hours of any accrued and unused paid annual leave 
to the following 12-month period. 
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(6) PROHIBITION ON FINDING COVER.—An em-
ployer may not require, as a condition of taking 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. 
(7) GUIDANCE.—Not later than 180 after the 
date of enactment of this Act, the Secretary shall 
provide guidance to employers on compliance with 
paragraph (3), including defining the terms limited 
reasonable restriction, a bona fide business reason, 
and a reasonable alternative time. 
(d) PROCEDURES
REGARDING
LEAVE
FOR
EM-
PLOYEE SEPARATION.— 
(1) COMPENSATION.—In the case that an em-
ployee separates from an employer and such em-
ployee has unused paid annual leave, the employer 
shall provide financial compensation at a rate that 
is the higher of— 
(A) the average regular rate received by 
such employee during the last 3 years of the 
employee’s employment; or 
(B) the final regular rate received by the 
employee. 
(2) REINSTATEMENT.—If an employee sepa-
rates from employment with an employer and is re-
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hired within 12 months after that separation by the 
same employer— 
(A) in the case that the employee had paid 
annual leave in excess of 80 hours that was not 
compensated under paragraph (1), the employer 
shall reinstate such leave for the employee; 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. EMPLOYER NOTICE AND SYSTEM REQUIREMENTS. 
(a) NOTICE REQUIREMENT.—An employer shall no-
tify each employee about the paid annual leave policy of 
such employer, which shall include the information de-
scribed in subsection (b), by— 
(1) providing such information, in writing, to 
each employee on or before the first day of employ-
ment of such employee; 
(2) including such information in any employee 
handbook; and 
(3) posting a notice containing such informa-
tion in a physical conspicuous place on the premises 
of the employer or a virtual conspicuous place, where 
notices to employees are customarily posted. 
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(b) CONTENTS.—The information provided pursuant 
to subsection (a) shall include— 
(1) any paid annual leave policy of such em-
ployer, including any paid annual leave policy that 
provides paid annual leave in excess of the require-
ments of this Act; 
(2) information pertaining to the filing of an 
action under section 6; 
(3) details of any notice requirement the em-
ployer 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 Sec-
retary (or other appropriate authority as de-
scribed in section 6) if any such rights are vio-
lated. 
(c) SYSTEM REQUIREMENT.—An employer shall es-
tablish a system, such as through an online portal, written 
request, or through pay stubs, to inform each employee 
of the employer how much paid annual leave each em-
ployee has earned. 
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SEC. 5. PROHIBITED ACTS. 
(a) INTERFERENCE WITH RIGHTS.—It shall be un-
lawful for any employer to— 
(1) violate any provision of section 3 or 4; 
(2) discharge or discriminate against (including 
to retaliate against) any individual, including a job 
applicant, for exercising, or attempting to exercise, 
any right provided under this Act; 
(3) use the taking of paid annual leave provided 
under this Act as a negative factor in an employ-
ment action, such as hiring, promotion, reducing 
hours or numbers of shifts, or a disciplinary action; 
or 
(4) count the use of such leave under a no-fault 
attendance policy or any other absence-control pol-
icy. 
(b) INTERFERENCE WITH PROCEEDINGS OR INQUIR-
IES.—It shall be unlawful for any person to discharge or 
in any other manner discriminate against (including retali-
ating 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; 
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(2) has given, or intends to give, any informa-
tion in connection with any inquiry or proceeding re-
lating to any right provided under this Act; or 
(3) has testified, or intends to testify, in any in-
quiry or proceeding relating to any right provided 
under this Act. 
(c) IMPERMISSIBLE CONSIDERATION.—A violation of 
subsection (a) or (b) shall be established when a com-
plaining party demonstrates that any action described in 
paragraphs (1), (2), or (3) of subsections (a) or (b) was 
a motivating factor in any such action taken against the 
complaining party, even though other factors also moti-
vated the action. 
SEC. 6. ENFORCEMENT AND INVESTIGATIVE AUTHORITY. 
(a) IN GENERAL.— 
(1) DEFINITION.—In this subsection— 
(A) the term ‘‘employee’’ means a covered 
employee described in subparagraph (A), (B), 
or (C) of section 2(2); and 
(B) the term ‘‘employer’’ means an em-
ployer described in subclauses (I) or (II) of sec-
tion 2(3)(A)(i). 
(2) INVESTIGATIVE AUTHORITY.— 
(A) IN GENERAL.—To ensure compliance 
with this Act, or any regulation or order issued 
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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 pre-
scribed 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 Sec-
retary has reasonable cause to believe there 
may exist a violation of this act or any regula-
tion or order issued pursuant to this Act, or is 
investigating a charge pursuant to paragraph 
(4). 
(D) SUBPOENA AUTHORITY.—For the pur-
poses of any investigation provided for in this 
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paragraph, the Secretary shall have the sub-
poena 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 sub-
paragraph (B) may be maintained against any 
employer in any Federal or State court of com-
petent 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 vio-
lates section 5 shall be liable to any employee 
or individual affected— 
(i) for damages equal to— 
(I) the amount of— 
(aa) any wages, salary, em-
ployment benefits, or other com-
pensation denied or lost by rea-
son of the violation; or 
(bb) in a case in which 
wages, salary, employment bene-
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fits, or other compensation have 
not been denied or lost, any ac-
tual 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 liq-
uidated damages; and 
(ii) for such equitable relief as may be 
appropriate, including employment, rein-
statement, 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 wit-
ness fees, and other costs to be paid by the de-
fendant. 
(D) LIMITATIONS.— 
(i) IN GENERAL.—Except as provided 
in subparagraph (B), an action may be 
brought under paragraph (2) or (3) not 
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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 vio-
lation of section 5 (including a willful vio-
lation relating to rights provided under 
section 3), such action may be brought not 
more than 3 years after the last event con-
stituting the alleged violation for which 
such action is brought. 
(iii) 
COMMENCEMENT.—In 
deter-
mining when an action is commenced 
under paragraph (2) or (3) for the pur-
poses 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 Sec-
retary 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 
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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 juris-
diction to recover the damages described in sub-
section (a)(3)(B). 
(C) SUMS RECOVERED.—Any sums recov-
ered by the Secretary pursuant to subparagraph 
(B) shall be held in a special deposit account 
and shall be paid, on order of the Secretary, di-
rectly 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
SEC-
RETARY.—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 re-
straint of any withholding of wages, salary, 
employment benefits, or other compensa-
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tion, plus interest, found by the court to be 
due to employees or individuals eligible 
under this Act; or 
(ii) to award such other equitable re-
lief as may be appropriate, including em-
ployment, reinstatements, and promotion. 
(E) SOLICITOR OF LABOR.—The Solicitor 
of Labor may appear for an represent the Sec-
retary on any litigation brought under this sub-
section. 
(b) GOVERNMENT ACCOUNTABILITY OFFICE AND LI-
BRARY OF CONGRESS.—Notwithstanding any other provi-
sion of this section, in the case of the Government Ac-
countability Office and the Library of Congress, the au-
thority of the Secretary under this subsection shall be ex-
ercised respectively by the Comptroller General of the 
United States and the Librarian of Congress. 
(c) EMPLOYEES COVERED BY CONGRESSIONAL AC-
COUNTABILITY 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 de-
fined 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 
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person, alleging an unlawful employment practice in viola-
tion 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 per-
son, respectively, alleging an unlawful employment prac-
tice 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 con-
stitute 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 
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any employee who has complied with the procedures 
of subsection (a)(3), for injunctive relief that is au-
thorized under this Act. In such a suit, the court 
may award to the prevailing party those costs au-
thorized by section 722 of the Revised Statutes (42 
U.S.C. 1988). 
(3) APPLICABILITY.—With respect to a par-
ticular 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 re-
ceives 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). 
(f) COLLECTIVE BARGAINING AGREEMENT RESOLU-
TION.—In addition to the enforcement mechanisms set 
forth in this section, an employee or labor organization 
may also use a grievance and arbitration procedure of a 
collective bargaining agreement to enforce collectively bar-
gained provisions relating to paid annual leave. 
SEC. 7. EFFECT ON OTHER LAWS AND EXISTING AGREE-
MENTS. 
(a) STATE OR MUNICIPAL LAWS.— 
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(1) GREATER LEAVE RIGHTS.—Nothing in this 
Act shall be construed to supersede any provision of 
any State or local law that provides greater paid an-
nual leave or other leave rights to employees or indi-
viduals than the rights established under this Act. 
(2) 
DISTINGUISH
BETWEEN
TYPES
OF 
LEAVE.—For the purposes of this subsection, a 
State or municipal law that does not distinguish be-
tween time earned for paid annual leave and time 
earned for sick leave shall be deemed a law that pro-
vides lesser paid annual leave or other rights to em-
ployees or individuals than the rights established 
under this Act. 
(b) MORE PROTECTIVE AGREEMENTS.—Nothing in 
this Act shall be construed to diminish the obligation of 
an employer to comply with any contract, collective bar-
gaining 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. 
(c) LESS PROTECTIVE AGREEMENTS.—The rights es-
tablished for employees under this Act shall not be dimin-
ished by any contract, collective bargaining agreement, or 
any employment program or plan. 
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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 paid annual leave 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 nec-
essary to carry out this section. 
SEC. 9. EFFECTIVE DATES. 
(a) EFFECTIVE DATE.—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 agree-
ment; 
(2) the date of any amendment, made on or 
after such effective date, to such agreement; or 
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