The US Department of Labor has published final regulations implementing Executive Order 13706, which requires federal contractors to provide paid sick leave. Federal contractors should review the Final Rule to ensure their programs comply with the new requirements. In addition, employers will need to track employees’ work on applicable government contracts.  

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Final Rule on Paid Sick Leave for Federal Contractors

Dec 19, 2016

Background on the Final Rule:
The US Department of Labor has published final regulations (the “Final Rule”) implementing Executive Order 13706, which requires federal contractors to provide paid sick leave.

Certain federal contractors and subcontractors must agree to grant all employees working under a covered contract (or subcontract) a minimum of one hour of paid sick leave for every 30 hours worked.  These employees must be allowed to accrue and carry over at least 56 hours (seven days) of this leave per year.

The Final Rule includes descriptions of the permitted reasons for the leave, how employees can inform the employer that a leave is needed, how employers can notify employees of the amount of their accrued leave, and direction clarifying how a contractor’s current sick leave policy can satisfy these requirements.

Impact on Employers:
Federal contractors should review the Final Rule to ensure their programs comply with the new requirements. In addition, employers will need to track employees’ work on applicable government contracts.

For more information, please see:
Proclamation No. 13706, 80 Fed. Reg. 54,697 (Sept. 7. 2015)

The Final Rule will appear at 29 C.F.R. Part 13 (Text of 29 C.F.R. Part 13 starts on p. 404)