On August 6, 2026, Sen. Bernie Sanders reintroduced the Guaranteed Paid Vacation Act, legislation that would establish a federal right to paid annual vacation for workers. Rep. Seth Magaziner introduced companion legislation in the House with support from 86 House members.

Under the proposal, covered employees would accrue at least one hour of paid annual leave for every 25 hours worked. Full-time employees would be guaranteed at least two weeks of paid vacation annually, which could be used for any reason and paid at the employee's regular rate of pay. The legislation would also prohibit discrimination or retaliation against employees for exercising their right to take paid vacation leave.

For employers, an important distinction is that this proposal addresses paid vacation time, rather than paid sick leave. Supporters have described the vacation benefit as separate from paid sick leave and paid family and medical leave programs. As currently proposed, employers could be required to provide paid vacation as a distinct benefit rather than counting existing sick leave toward the federal vacation requirement.

For Michigan employers, there is currently no state law that generally requires private-sector employers to provide paid vacation benefits. Vacation policies are typically governed by employer policy rather than state mandate. As a result, if a federal paid vacation requirement were enacted, it could create a new compliance obligation for employers that do not currently provide the required amount of paid vacation.

At this stage, however, employers should not make changes to their vacation policies based solely on this proposal. The legislation has only recently been reintroduced and remains in the early stages of the legislative process. Before becoming law, it would need to advance through both chambers of Congress and be signed by the President.

While the proposal has garnered support from Democratic lawmakers and organized labor advocates, its ultimate prospects remain uncertain. As with many employment-related proposals introduced in Congress, significant legislative hurdles remain before any federal requirements would take effect.

For now, HR professionals and employers should view this legislation as a “monitor" item rather than an immediate compliance concern. Organizations should continue administering their existing vacation policies and ensuring compliance with current federal, state, and local employment laws.

ASE will continue monitoring developments and will keep members informed if the legislation gains momentum or advances through the congressional process.