Paid Vacation

Chambers Oppose Costly Federal Paid Vacation Mandate

The Southwest California Legislative Council opposes a federal legislative proposal that would mandated paid vacation for full and part-time employees. The first of its kind at the federal level, H.R. 2564 would be costly to employers at a time when unemployment rates have continued to climb as both large and small businesses struggle in a fragile economy.

“Time and time again we have opposed state mandated paid vacation proposals and see no other reason but to continue to oppose this type of mandate at the federal level,” stated Roger Ziemer, Chair of the Southwest California Legislative Council. “Mandates of any kind are not the right way to do business in California or anywhere in the country for that matter. We believe business needs to remain vigilant as the legislative session moves on in order to protect jobs and the cost of doing business in Lake Elsinore,” continued Ziemer.

H.R. 2564, also known as the Paid Vacation Act of 2009, comes at a time when businesses may not be able to afford extra vacation time and would also limit the benefits an employer may currently offer to its employees such as bonuses.

Details of H.R. 2564:

  •  Full- and part-time (25 hours per week/1250 hours per year) workers will be eligible after one year of service.
  • “Eligible employee” means an employee who has been employed for at least 12 months by the employer with respect to whom leave is requested and has accumulated at least 1,250 hours of service with such employer during such 12-month period.

3 years after the date of enactment of H.R. 2564 following would also be allowed:

  •  Eligible employee of an employer that employs 50 or more employees at any time during a calendar year shall be entitled to a total of 1 workweek of paid vacation during each 12-month period.
  • Eligible employees of an employer that employs 100 or more employees shall be entitled to a total of 2 workweeks of paid vacation during each 12-month period, beginning on that eligible employee’s first anniversary of employment.
  • H.R. 2564 requires an eligible employee shall provide the employer with not less than 30 days’ notice, before the date the paid vacation is to begin and identify the date such paid vacation shall begin.

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