However, in the United States, employers vehemently fought against interference from the government in their business affairs. Over 120 years later, all proposed national laws mandating American businesses to give employees paid leave have been unsuccessful.

The United States is famously the only advanced economy in the world that does not federally mandate paid vacation time for its workers. This is primarily a result of the Fair Labor Standards Act (FLSA) of 1938, which focused on establishing a minimum wage, overtime pay, and child labor protections, but left "benefits" like vacation and sick leave to be negotiated between employers and employees. Philosophically, the US labor market leans heavily toward "at-will" employment and free-market principles, with the belief that government mandates could hinder business flexibility or lead to lower base wages. Consequently, while roughly 80% of private-sector workers receive some paid vacation as part of their compensation package to stay competitive, it is not a legal right. In 2026, some states like Illinois and Maine have passed their own paid time off (PTO) laws, but on a national level, the US remains a "no-vacation nation" compared to the EU, where a minimum of 20 to 25 days is legally required.