Fact Sheet
Part of a Series
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A child runs through a fountain in New York City on August 22, 2020. (Getty/Alexi Rosenfeld)

Currently in the United States, federal law doesn’t guarantee workers a single paid day off, and many aren’t even entitled to unpaid time off. The Center for American Progress presents a series of fact sheets explaining the major types of laws that give workers rights in relation to workplace leave. This fact sheet addresses laws providing a right to paid time off (PTO) that can be used for any reason.

Who has PTO?

Most employees in the United States have some form of PTO, though the exact parameters vary substantially. In the private sector, 88 percent of employees have access to some combination of paid personal leave, sick leave, family leave, and/or vacation.1 However, among the lowest 25 percent of earners, nearly one-third (30 percent) do not have access to any of these forms of paid leave, and more than one-third (36 percent) of part-time workers do not have access.2

Focusing on paid vacation time, 80 percent of all private sector employees have access, while part-time employees (40 percent) and the lowest 25 percent of earners (56 percent) are much less likely to have access.3 Access also varies substantially by industry: Only 44 percent of leisure and hospitality workers have paid vacation, compared with 98 percent of those in finance and insurance.4 This is in stark contrast to peer economies, in which virtually all employees are guaranteed paid annual leave by law—typically for 20 working days per year or more.5

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What laws give workers the right to general-use PTO?

No U.S. federal law gives workers the right to any kind of paid vacation, personal time, or other general-use PTO. The Protected Time Off Act is proposed federal legislation introduced by Rep. Seth Magaziner (D-RI) and Sen. Bernie Sanders (I-VT) that would provide the right to earn and use general-use PTO to employees across the country.6 Maine,7 Nevada,8 and Illinois,9 along with a few localities,10 have passed laws giving covered employees the right to earn and use PTO that can be used for any reason.11 These laws are often styled as “paid leave”12 laws, which can generate confusion with other kinds of laws, such as paid sick time or paid family and medical leave laws.13

Understanding Chicago’s hybrid ordinance

Prior to the passage of Illinois’ statewide PTO law, Chicago law granted workers the right to paid sick time when they or their loved ones were sick or seeking care but did not grant PTO that could be used for any reason.14 Following the passage of the state law, however, Chicago expanded its existing paid sick time law to add a new right to earn PTO that can be used for any purpose, separate from the paid sick time that employees will continue to earn.15 As a result, Chicago has a hybrid paid sick time and PTO law that grants employees rights to two distinct kinds of time off.

What needs do PTO laws cover?

While most paid leave laws cover only certain needs, PTO laws do not limit the reasons for which workers can use their leave.16 This means that workers can use their time off for any reason, including a planned vacation or addressing a personal emergency. This time could also be used for health reasons, similar to paid sick time.

What rights do PTO laws provide?

PTO laws provide the right to be paid while on covered leave.17 PTO laws provide covered employees with the right to earn and use time off, though some limitations may apply, such as notice or scheduling requirements.18 They also typically protect employees against retaliation, meaning they cannot be punished—including being fired, written up, or having their hours reduced—for using their time or otherwise exercising their rights under the law.19

Who do PTO laws cover?

Coverage varies substantially by jurisdiction. For example, Illinois’ PTO law is similar in coverage to state paid sick time laws, generally covering full-time, part-time, and seasonal employees at employers of all sizes.20 In contrast, Maine’s and Nevada’s laws only cover employers with a minimum number of employees21 and have additional exemptions from coverage, such as for seasonal workers or newer employees.22 Municipal PTO laws vary in their coverage.23

Workers begin earning PTO immediately under all state PTO laws, but employers do not have to allow employees to use that time until the employee has been employed for a certain amount of time, such as 90 days24 or 120 days.25 This means that in practice, temporary or seasonal employees may have difficulty using sick time under these laws, even if they are formally covered.

How much time can workers take under PTO laws?

PTO laws operate on an accrual system in which workers earn PTO based on how many hours they work.26 At the state level, PTO accrues at a rate of 1 hour for every 40 hours worked (Maine and Illinois) or about 52 hours worked (Nevada);27 depending on the state, employers may limit the time workers can earn or use in a year to 40 hours.28

How much money do workers receive through PTO laws?

PTO laws require employers to pay employees for their time at their full regular or base rate of pay, though special rules for tipped workers may apply.29

Endnotes

  1. U.S. Bureau of Labor Statistics, “National Compensation Survey: Employee Benefits in the United States, March 2024,” September 2024, available at https://www.bls.gov/ebs/publications/employee-benefits-in-the-united-states-march-2024.htm.
  2. Ibid.
  3. Ibid.
  4. Ibid. Statistics refer to private sector employees only.
  5. Adewale Mayo, “No Vacation Nation, Revised” (Washington: Center for Economic and Policy Research, 2019), p. 6, available at https://cepr.net/images/stories/reports/no-vacation-nation-2019-05.pdf.
  6. Note that the Senate version uses the alternate title “Guaranteed Paid Vacation Act.” Protected Time Off Act, H.R. 7752, 118th Cong., 2nd sess. (March 20, 2024), available at https://www.congress.gov/bill/118th-congress/house-bill/7752/text; Guaranteed Paid Vacation Act, S. 4003, 118th Cong., 2nd sess. (March 20, 2024), available at https://www.congress.gov/bill/118th-congress/senate-bill/4003/text
  7. State of Maine, “An Act Authorizing Earned Employee Leave,” Maine Public Law 2019 Ch. 156 (May 28, 2019), available at https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0110&item=4&snum=129.
  8. Nevada Rev. Stat. § 608.0197, available at https://www.leg.state.nv.us/nrs/nrs-608.html#NRS608Sec0197 (last accessed November 2024).
  9. 820 Illinois Compiled Statues 192, available at https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=4351&ChapterID=68 (last accessed November 2024).  
  10. Bernalillo County, New Mexico, Code of Ordinances § 14-703, “Employee Wellness Act,” available at https://library.municode.com/nm/bernalillo_county/codes/code_of_ordinances?nodeId=BECOCO_CH14BU_ARTXIIEMWEAC_S14-701TIPU#:~:text=14%2D703.,paid%20time%20off%3B%20employer%20compliance (last accessed November 2024); West Hollywood, California, Municipal Code tit. 5, § 5.130.030, “Paid Sick Leave, Vacation, or Personal Necessity,” available at https://ecode360.com/43905741#43905780 (last accessed November 2024); Cook County, Illinois, Board of Commissioners Ordinance 24-0583, “Paid Leave Ordinance,” December 14, 2023, available at https://cook-county.legistar.com/LegislationDetail.aspx?ID=6450087&GUID=45C61392-CE2D-4D35-884B-4EA288566ADD&Options=Advanced&Search=; Office of the City Clerk Anna M. Valencia City of Chicago, “Amendment of Municipal Code Titles 2, 4 and 6 by modifying various sections and adding new Chapter 6-130 entitled ‘Chicago Paid Leave and Paid Sick and Safe Leave Ordinance’ (Final),” Record number SO2023-0002980, November 9, 2023, available at https://chicityclerkelms.chicago.gov/Matter/?matterId=1776119D-5826-EE11-9965-001DD804E9A5.
  11. Nevada Rev. Stat. § 608.0197(2)(b); 820 Illinois Compiled Statues 192/15(e). Maine’s law does not explicitly state that time can be used for any purpose, but does so implicitly by regulation allowing the use for any reason so long as the law’s protocols are followed. See 12-170 Code of Maine Rules Ch. 1(V)(F), available at https://www.maine.gov/labor/docs/2020/laborlaws/EarnedPaidLeaveRuleFinalClean.pdf (last accessed November 2024).  
  12. Maine Department of Labor, “Earned Paid Leave,” available at https://www.maine.gov/labor/labor_laws/earnedpaidleave/ (last accessed November 2024); State of Nevada Office of the Labor Commissioner, “Paid Leave Effective January 1, 2020 – Nevada Revised Statutes (NRS) § 608,” available at https://labor.nv.gov/uploadedFiles/labornvgov/content/Employer/SB%20312%20Paid%20Leave%20English.pdf (last accessed November 2024); Illinois Department of Labor, “Paid Leave for All Workers Act,” available at https://labor.illinois.gov/laws-rules/paidleave.html (last accessed November 2024).   
  13. For more information on other kinds of laws granting paid leave rights, see Molly Weston Williamson, “The State of Paid Sick Time in the U.S. in 2024” (Washington: Center for American Progress, 2024), available at https://www.americanprogress.org/article/the-state-of-paid-sick-time-in-the-u-s-in-2024/; Molly Weston Williamson, “The State of Paid Family and Medical Leave in the U.S. in 2024” (Washington: Center for American Progress, 2024), available at https://www.americanprogress.org/article/the-state-of-paid-family-and-medical-leave-in-the-u-s-in-2024/.
  14. Diana Boesch, Rachel Kershaw, and Osub Ahmed, “Fast Facts: Economic Security for Women and Families in Illinois” (Washington: Center for American Progress, 2019), available at https://www.americanprogress.org/article/fast-facts-economic-security-women-families-illinois/.
  15. Office of the City Clerk Anna M. Valencia City of Chicago, “Amendment of Municipal Code Titles 2, 4 and 6 by modifying various sections and adding new Chapter 6-130 entitled ‘Chicago Paid Leave and Paid Sick and Safe Leave Ordinance’ (Final)”; Sabrina Franzer and Todd Feurer, “Chicago City Council passes expansion of paid leave for workers,” CBS News, November 9, 2023, available at https://www.cbsnews.com/chicago/news/chicago-city-council-expansion-paid-leave-workers/.
  16. Nevada Rev. Stat. § 608.0197(2)(b); 820 Illinois Compiled Statues 192/15(e). Maine’s law does not explicitly state that time can be used for any purpose, but does so implicitly by regulation allowing the use for any reason so long as the law’s protocols are followed. See 12-170 Code of Maine Rules Ch. 1(V)(F).  
  17. 26 Maine Revised Statutes § 637(4), available at https://legislature.maine.gov/statutes/26/title26sec637-2.html (last accessed November 2024); Nevada Rev. Stat. § 608.0197(1)(d); 820 Illinois Compiled Statues 192/15(f).
  18. Nevada Rev. Stat. § 608.0197(2-3); 820 Illinois Compiled Statues 192/15(a), (h); 26 Maine Revised Statutes § 637(2),(6); 12-170 Code of Maine Rules Ch. 1(V)(C).  
  19. Nevada Rev. Stat. § 608.0197(3); 820 Illinois Compiled Statues 192/25; Bernalillo County Code § 14-703(b)(6).
  20. 820 Illinois Compiled Statues 192/10; Illinois Department of Labor, “Paid Leave for All Workers Act FAQ,” available at https://labor.illinois.gov/faqs/paidleavefaq.html#faq-1doestheactapplytoparttimeemployeesorjustfulltimeemployees-faq (last accessed November 2024). However, subject to certain requirements, employers covered by local paid sick time/paid time off laws may only be subject to their local law, rather than the state law that existed prior to the passage of the local law. See 820 Illinois Compiled Statues 192/15(p).
  21. 26 Maine Revised Statutes§ 637(2); Nevada Rev. Stat. § 608.0197(9)(b).
  22. 26 Maine Revised Statutes § 637(1)(a); Nevada Rev. Stat. § 608.0197(7)-(8).
  23. A Better Balance, “Overview of Paid Time Off Laws in the United States,” available at https://www.abetterbalance.org/resources/overview-of-paid-time-off-laws-in-the-united-states/ (last accessed November 2024).
  24. Nevada Rev. Stat. § 608.0197(2)(a); 820 Illinois Compiled Statues 192/15(g); Bernalillo County Code § 14-703(b)(3).
  25. 26 Maine Revised Statutes§ 637(3).
  26. A Better Balance, “Overview of Paid Time Off Laws in the United States.”
  27. 26 Maine Revised Statutes § 637(3); Nevada Rev. Stat. § 608.0197(1)(a); 820 Illinois Compiled Statues 192/15(b).
  28. 26 Maine Revised Statutes § 637(3); Nevada Rev. Stat. § 608.0197(1)(f); 820 Illinois Compiled Statues 192/15(b).
  29. 26 Maine Revised Statutes § 637(4); Nevada Rev. Stat. § 608.0197(1)(d); 820 Illinois Compiled Statues 192/15(f).

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This fact sheet series explains the main kinds of laws that offer Americans rights when they need time off for health or caregiving needs. All workers deserve the full suite of rights described in this fact sheet series.

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