Sec. 3. Earned annual leave
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An employer shall provide each employee employed by the employer not less than 1 hour of paid annual leave for every 25 hours worked. 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. An employee shall begin to earn paid annual leave at the commencement of employment of such 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.
Paid annual leave may be used by an employee for any reason. Subject to paragraphs
(2)and
(3)of subsection (c), an employee may use paid annual leave earned by the employee— beginning on the 60th calendar day after the first date of employment of the employee; or at any time before such calendar day at the discretion of the employer of such employee. 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. 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. 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. 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). Subject to paragraphs
(2)and (3), an employee may use paid annual leave upon the verbal or written request of the employee. An employer may require an employee to provide notice to the employer to use paid annual leave. An employer may not require an employee to provide notice in excess of 2 weeks in advance of the use of such leave. 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. 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. An employer may not require an employee to disclose the purpose or reason for which the employee is using paid annual leave. 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. 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. 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. If an employee is separated from employment with an employer and is rehired, within 12 months after that separation, by the same employer— the employer shall reinstate the employee’s previously earned paid annual leave; and the employee shall be entitled to use such leave and earn additional paid annual leave at the recommencement of employment with the employer.
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U.S. Code