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LABOR & EMPLOYMENT LAW — 05/26/09

“First-ever” House bill would mandate one week of paid vacation

In what he called “a bold and historic move to help rejuvenate the American economy,” Rep. Alan Grayson (D-FL) has introduced a bill that would amend the Fair Labor Standards Act to require that employers with at least 100 workers provide a minimum of one week of paid vacation each year. The Paid Vacation Act of 2009 (H.R. 2564) was introduced on Thursday, May 21.

The legislation would cover employees after they have worked for their employer for one year. Part-time workers must work 25 or more hours a week and 1,250 hours per year to be covered under its provisions. Within three years of passage, the legislation would cover companies with at least 50 employees, and require two weeks of vacation for companies with 100 employees. The Department of Labor and Department of Justice would enforce its provisions.

“The bill will dramatically improve productivity at American companies and provide a much-needed spark for the U.S. travel and tourism industries,” Grayson noted, in a press release announcing the bill’s introduction. (Grayson represents Florida’ 8th District, which includes the tourism-heavy Orlando, Florida, area.)

The United States is alone among industrial countries in not mandating paid vacation time, according to “No-Vacation Nation,” a 2007 study by John Schmitt, an economist with the Center for Economic and Policy Research. More than 147 countries now have paid vacation laws. All European nations require at least four weeks of paid vacation, Schmitt notes.

“Why are paid vacations good enough for Chinese, French, Japanese, and German employees, but not good enough for us? In other countries, it’s a matter of right. Everyone is entitled to it. In our country, it is a matter of class,” Grayson said.

“This is a very modest bill,” says John de Graaf, executive director of Take Back Your Time, a U.S./Canadian group that challenges what it calls “the epidemic of overwork” and advocates for paid vacation. “But we support it wholeheartedly.” De Graaf said he hopes the bill would begin a dialogue about the importance of vacation time and about “how deprived Americans are when it comes to paid time off.” He joined Grayson at the Thursday press conference.

According to a press release by the group, one quarter of all US workers receive no paid vacation time at all; the average is less than two weeks. Meanwhile, the number of U.S. companies that offer paid vacation time has actually dropped in the past year.

Half of all Americans took less than one week of vacation in 2008, according to a poll conducted last year, and only 14% of American workers took two weeks or more for vacation. As Grayson cited, 28% of Americans receive no paid vacation. Only 69% of lower-wage workers get paid vacation.

The poll also found that 69% of American voters would support a paid vacation law, including 75% of women, 83% of voters under 30, and 89% of African-Americans. “Without any question, there is widespread grassroots support,” says Joe Robinson, a board member of Take Back Your Time.

The bill, which has two cosponsors, has been referred to the House Education and Labor Committee.

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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