Labor & Employment (Paid Leave)

This bill establishes a permanent "Payroll Audit Independent Determination" (PAID) program under the Department of Labor, allowing employers to voluntarily self-audit and correct unintentional wage violations under federal law. Employers submit payroll audits identifying minimum wage or overtime errors, then pay back wages directly to affected employees through a streamlined process overseen by the Department. Employees who accept the settlement receive full payment but waive their right to sue for those specific violations, while employers gain protection from future investigations for the same issues. The program, based on a successful 2018-2019 pilot that resolved cases faster and with higher back-wage payments than traditional enforcement, includes strict safeguards like confidentiality for submitted data and requirements for employer good faith.

HR 996 extends and enhances a tax credit for employers that provide paid family and medical leave to employees. The bill gives eligible employers two options for claiming the credit: either a percentage of wages paid to employees on leave or a percentage of premiums paid for an insurance policy covering such leave (calculated as if leave were always available). It clarifies that state or local government-paid leave counts toward an employer’s leave provision but not toward the credit amount, and prevents double benefits by disallowing deductions for expenses used to claim the credit. The Small Business Administration and Internal Revenue Service must conduct outreach to help employers understand and access this credit.

This bill establishes comprehensive labor protections for domestic workers, including house cleaners, nannies, personal care aides, and other employees working in private homes. It directly affects approximately 2.2 million domestic workers, predominantly women of color and immigrants who have historically been excluded from key labor protections. Key provisions include requiring written employment agreements outlining wages and hours, providing earned sick days for health and safety needs, establishing fair scheduling practices with advance notice requirements, protecting privacy rights, and prohibiting unfair wage deductions. The bill also extends civil rights protections under Title VII of the Civil Rights Act to domestic workers and creates a Domestic Employee Standards Board to recommend workplace standards.

This bill makes the Department of Labor's voluntary Payroll Audit Independent Determination (PAID) pilot program permanent. It allows employers to self-audit unintentional violations of minimum wage or overtime rules under the Fair Labor Standards Act (FLSA), submit detailed payroll data to the Labor Department, and pay back wages to affected employees directly. Employees receive settlement offers they can accept (waiving future lawsuits) or decline while retaining their right to sue. The program aims to resolve wage issues faster and more efficiently than traditional enforcement, as shown in the pilot's data where self-audits paid more back wages per case and per enforcement hour than standard investigations. It directly affects employers covered by the FLSA and their employees who may have unpaid wages.

This bill requires most private employers to pay non-exempt workers 1.5 times their regular hourly rate for work performed on federal holidays. It applies to employees in jobs involving commerce or production for commerce (covering most private-sector hourly workers), excluding certain exempt positions like managers. The law amends the federal minimum wage law to add holiday pay as a new requirement, alongside existing overtime rules. Employers must pay this premium for all federal holidays listed under 5 U.S.C. 6103(a), such as New Year’s Day and Independence Day.

The Schedules That Work Act would require employers in retail, food service, hospitality, cleaning, and warehouse sectors to provide workers with 14 days' advance notice of their schedules and pay predictability wages for last-minute changes. It allows employees to request schedule changes related to caregiving responsibilities, health conditions, education, or other jobs, with employers required to engage in good-faith discussions about such requests. The bill prohibits retaliation against employees who request schedule changes and mandates written notice of schedule changes and predictability pay. It applies to employers with 15 or more employees in covered sectors, aiming to address widespread issues with unpredictable schedules that negatively impact workers' ability to care for family members, maintain housing stability, and access health care.