The Protected Time Off Act establishes a federal minimum accrual rate of one hour of paid annual leave for every 25 hours worked, while protecting employees' rights to use and enforce this earned time off.
Seth Magaziner
Representative
RI-2
The Protected Time Off Act establishes a federal minimum standard for earned paid annual leave, requiring employers to grant employees at least one hour of paid time off for every 25 hours worked, up to 80 hours annually. This law specifies how leave is accrued, used, and rolled over, while protecting employees from retaliation for exercising these rights. It also ensures that existing state laws or agreements that provide more generous leave benefits remain in effect. Enforcement mechanisms are established, largely mirroring those under the Fair Labor Standards Act, allowing both government investigation and direct employee lawsuits.
Federal 'PTO Act' Mandates 80 Hours of Paid Annual Leave for Millions of Workers, Kicking Off in 180 Days
The new Protected Time Off Act (PTO Act) aims to establish a federal floor for paid annual leave, ensuring most employees start earning vacation time from day one. Here’s the deal: for every 25 hours you work, your employer must grant you at least one hour of paid annual leave, capped at 80 hours (or two standard workweeks) per 12-month period. You can use this time for any reason, immediately upon earning it, and you get paid your regular rate while you’re out.
The New Accrual Rules: What You Earn and When
This isn't about sick days or FMLA—the bill explicitly calls this "Paid Annual Leave," which is essentially vacation or personal time, separate from things like medical or bereavement leave (SEC. 2). For the average hourly worker, the 1-hour-per-25-worked rule is straightforward. If you’re an exempt (salaried) employee, the law simplifies things by treating you as if you work exactly 40 hours a week for accrual purposes, even if you regularly pull 60-hour weeks (SEC. 3). This is a crucial detail for white-collar workers: while you get guaranteed PTO, the accrual calculation might shortchange those who consistently work overtime.
Using Your Time Off: The Boss Can’t Say No (Easily)
Under this Act, you only need to give up to two weeks' notice for planned time off, and you can take the leave in hourly increments. While employers can impose “limited, reasonable restrictions” on when you take the leave for a genuine business reason, they can’t just deny it outright. If they deny your vacation request, they must provide a written explanation within five business days and offer you an alternative date within 30 days of your original request (SEC. 3). This prevents bosses from indefinitely pushing your vacation into the never-never. Also, your employer can’t force you to find coverage for your shift—that’s their problem, not yours.
Protections and Payouts: The Fine Print
One of the strongest parts of this bill is the anti-retaliation section (SEC. 5). Employers cannot punish you—by firing, denying a promotion, or cutting your hours—for using the leave you earned. Crucially, if your company uses a 'no-fault' attendance policy (where you get dinged for every absence, regardless of the reason), they cannot count this protected annual leave against you. This is a big win for employees who worry about taking vacation because of rigid attendance tracking systems.
If you leave your job, the employer must pay out any unused annual leave. The payout rate is the higher of your final regular rate or the average of your regular rates over the last three years (SEC. 3). This ensures that if you’ve been underpaid recently or had a wage dip, you still get compensated fairly for your accumulated time.
What It Means for Employers and States
For small business owners, this means implementing new tracking systems to ensure compliance and paying out accrued leave upon separation. The law requires a clear system—online, on a pay stub, or via written request—so employees always know their balance (SEC. 4).
If you live in a state or city that already mandates paid time off, don't worry: this federal law sets a floor, not a ceiling. If your local law is more generous, it still applies (SEC. 7). However, the bill throws a curveball at states that combine sick leave and vacation time into one Paid Time Off (PTO) bucket, stating that if they don't separate them, the combined time may be treated as offering less annual leave than the new federal standard. This could force some states to restructure their existing leave laws.
Finally, the bill gives employees serious teeth for enforcement. If your employer violates the rules, you can sue them directly in federal or state court to recover lost wages, damages, and attorney fees (SEC. 6). Furthermore, states that accept federal funding waive their sovereign immunity, meaning state employees can sue their employers under this Act—a significant change in worker protection for public sector employees.