Paid Sick Leave for Employees on Federal Contracts Looms in the Future

Executive Order 13706 requires that most federal contractors provide paid sick leave for their employees for certain contracts solicited or awarded on or after January 1, 2017. This order requires that employees receive at least 56 hours of paid sick leave annually. The sick leave would accrue at one hour for every 30 hours worked and would be available for physical or mental illness, obtaining preventive care, or caring for children, family, or others who have a close association with the employee. Additionally, employees could take this time off if they are the victims of stalking, domestic violence, or sexual assault. The Executive Order also requires that the leave be carried over from one year to the next.

This is a lot to take in, but fortunately, we have some time. The proposed rules were released last week and are open for public comments until March 28. Then the Wage and Hour Division will have until September 30, 2016 to finalize the rules. While we don’t know exactly what the rules will require, we can start preparing for the future now. It may be time to assess how this will impact your existing time-off policies and begin to determine if any changes need to be made.

To further assess how this may impact your business, please contact us for assistance. For more information, including information on submitting comments, click here.