The Department of Labor (DOL) recently finalized rules implementing Executive Order 13706 (Paid Sick Leave for Federal Workers on Federal Contracts). The Final Rule will apply to employers entering into new contracts (meaning the solicitation was issued or contract was awarded on or after January 1, 2017) that are contracts covered by the Service Contract Act or the Davis-Bacon Act, concessions contracts, and service contracts in connection with federal property or lands.

The DOL expects the final rule to impact over one million employees working under federal contracts.

Under the final rule, covered employees may take time off for:

  • Their own illnesses or other health care needs, including preventive care;
  • The care of a family member or loved one who is ill or needs health care, including preventive care; or
  • Purposes resulting from being the victim of domestic violence, sexual assault, or stalking—or to assist a family member or loved one who is such a victim.

Generally, covered employers may choose one of two methods for providing sick leave.

Option 1 – Time accrued – Employees accrue one hour of sick leave for every thirty hours worked, with a cap of up to fifty-six hours in a year.

Option 2 – Front load – Employers can front load all fifty-six hours at the beginning of a year.

In the case of employees covered by a collective bargaining agreement other options may be considered.

Click Here to read the full release from the DOL.