Paid Sick Leave Required for Federal Contractors

Posted by BAS - 17 March, 2016

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In September 2015, President Obama signed an executive order requiring certain businesses who contract with the federal government to provide their employees up to seven days of paid sick leave each year.  Last month, the Department of Labor issued proposed regulations implementing the paid sick leave requirement.

The proposed rule describes the categories of contracts and employees subject to paid sick leave, describes requirements governing accrual and use of leave, prohibits interference with or discrimination against people for their use of leave, describes obligations of contracting agencies and establishes procedures for complaints.

Contracts.  The rule applies to any new contracts with the federal government requiring performance in the United States. This includes contracts for procurement, services, concessions and federal property or lands.  Certain contracting is excluded from the requirements.  New federal contracts will include required sick leave contracting language.

Accrual.  An employer subject to the provisions must allow its employees to accrue not less than 1 hour of paid sick leave for every 30 hours worked on or in connection with a covered contract.  Accruals must be calculated at the end of each workweek.  Employers may provide an employee with at least 56 hours of paid sick leave at the beginning of each accrual year instead of accruing leave based on hours worked over time.  Employers may choose their accrual years.

Carryover.  Paid sick leave must carry over from one accrual year to the next.  The carryover must not impact the subsequent year’s annual accrual amount.

Reinstatement.  Paid sick leave must be reinstated for employees rehired within 12 months after a job separation.

Payment upon Termination.  Employers do not have to payout unused sick leave at termination of employment.

Use.  Employers must allow employees to use paid sick leave to be absent from work for the following reasons:

  • Physical or mental illness, injury or medical condition of the employee;
  • Obtaining diagnosis, care, or preventive care from a health care provider by the employee;
  • Caring for the employee’s child, parent, spouse, domestic partner, or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship who has any of the conditions or needs for diagnosis, care or preventive care or is otherwise in need of care; or
  • Domestic violence, sexual assault or stalking, if the time absent from work is for care or for obtaining counseling, seeking relocation, seeking assistance from a victim services organization, taking related legal action (including preparing for proceedings) or assisting an individual related to the employee with these matters.

Request for Leave.  Employers must accept oral or written requests for leave.

Documentation of Leave.  If an employee takes leave for 3 or more consecutive days, the employer may require certification from a health care professional verifying the need for the leave.

All employers will have to evaluate their paid sick leave policies when entering into contracts with the federal government.


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