Sec. 3. Earned paid 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 by the employee. 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 earned under subsection (a)(1) may be used by an employee for any reason. 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)— beginning on the 60th calendar day after the commencement of employment of such employee; or at any time before such calendar day at the discretion of the employer of such employee. 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. 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— the minimum wage required under section 6(a) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a) ); the applicable State minimum wage; or the applicable local minimum wage. 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. Except as provided in subparagraph (C), paid annual leave loaned under subparagraph
(A)shall be treated as if earned under subsection (a)(1). 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. Reimbursement under clause
(i)shall be at the applicable rate described in paragraph (3). 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. 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. 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— before the day on which the employee intends to use the paid annual leave; and not more than 14 days before the day on which the employee intends to use the paid annual leave. 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. Notwithstanding paragraph (1), an employer may— place limited, reasonable restrictions regarding the scheduling of paid annual leave earned under subsection (a)(1); and 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. 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). 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. 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. 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— 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 under subsection (a)(1) at the recommencement of employment with the employer.
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