The U.S. Department of Labor announced today its Final Rule implementing Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. We are reviewing the Final Rule and will publish an Affirmative Action Alert with more details.

In the meantime, here are the highlights from the DOL’s Fact Sheet:

  • Covered contractors are “nearly identical” to those contractors covered by the minimum wage requirements for federal contractors, but this Rule also covers employees who are exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act. The Sick Leave rule also applies to “certain contracts with the U.S. Postal Service.”
  • The paid sick leave requirements will become effective in new solicitations or contracts awarded after January 1, 2017.
  • Employees who work on or in connection with a covered contract must accrue 1 hour of paid sick leave for every 30 hours worked.
  • “If a [collective bargaining agreement] ratified before September 30, 2016 applies to an employee’s work performed on or in connection with a covered contract, and the CBA provides the employee with at least 56 hours (or 7 days) of paid sick time (or paid time off that may be used for reasons related to sickness or healthcare) each year, the . . . Rule will not apply to the employee until the date the agreement terminates or January 1, 2020, whichever is first.”
  • Paid sick leave may be substituted for or run concurrently with unpaid leave under the Family and Medical Leave Act.
  • A contractor’s existing paid time off policy can fulfill the paid sick leave requirements as long as employees have the same rights and benefits required by the Final Rule.