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DOL Releases Paid Sick Leave Requirements for Federal Contractors

On September 30, 2016, the U.S. Department of Labor (DOL) issued the final rule setting forth the details that implements President Obama signed Executive Order 13706, which requires federal contractors to provide paid sick leave to their employees. The rule applies to contracts issued on or after January 1, 2017, and that fall under these categories:

  • Procurement contracts for construction covered by the Davis-Bacon Act (DBA);
  • Contracts for services covered by the Service Contract Act (SCA);
  • Concession contracts, including concessions contracts excluded from coverage under the SCA; and
  • Contracts in connection with federal property or lands and related to services provided to federal employees or their dependents or to the general public.

Contractors must allow employees to accrue paid sick leave at the rate of one hour for every 30 hours of work, which results in at least 56 hours of paid sick leave per calendar year. The rule permits an employee to take paid leave to care for anyone with whom the employee has a “significant personal bond” that is like a family relationship, regardless of a biological or legal relationship. More information can be found by clicking here