US DOL Proposes Rules for Paid Sick Leave for Federal Contractors

On September 7, 2015, President Barack Obama signed Executive Order 13706 (EO) requiring that certain federal contractors provide their employees with up to seven days of paid sick leave per year, including paid leave allowing for family care. Accordingly, the US Department of Labor (DOL) has announced a Proposed Rule to implement the EO.  The public has until March 28, 2016 to submit comments on the Proposed Rule. The DOL is required to issue final regulations by September 30, 2016.

The Proposed Rule describes the covered contracts and employees; the rules regarding the accrual and use of paid sick leave; the obligations of contracting agencies, the DOL, and covered federal contractors; and the remedies and enforcement procedures.

Coverage

The paid sick leave requirements apply to employees performing work on or in connection with contracts covered by the Davis-Bacon Act (DBA), the Service Contract Act (SCA); certain concessions contracts operated on federal land or using federal facilities; or a contract in connection with federal property and related to offering services for federal employees, their dependents, or the general public.

Accrual and Permissible Uses

Employees of a federal contractor can accrue one hour of paid sick leave for every 30 hours worked on or in connection with a covered contract, up to 56 hours a year. An employee can use paid sick leave time for:

• A physical or mental illness, injury, or medical condition.
• Obtaining diagnosis, care, or preventive care from a health care provider.
• Caring for the employee’s child, parent, spouse, domestic partner, blood relative, or an individual whose affinity is the equivalent of a family relation.
• Obtaining services related to domestic violence, sexual assault, or stalking.

Notice

Under the proposed regulations, contractors will be required to inform employees, in writing, of the amount of paid sick leave available at required intervals and maintain records related to the accrual and use of paid sick leave. Contractors will also be required to post an official paid sick leave notice in the workplace. Once approved, Compliance Poster Company will include the sick leave workplace notice on its federal contractor posters:

• Federal Service and Manufacturing Contracts Poster (#74625)
• Federal Construction Contracts Poster (#74626)
• Federal Service Contract Poster with E-Verify (#74788)