On Labor Day, President Obama signed an Executive Order requiring federal contractors to provide at least seven days of paid sick leave annually to employees performing work on covered contracts and subcontracts. The leave requirement goes into effect on January 1, 2017.

The coverage provisions of the leave requirement are the same as those for the recently enacted $10.10/hour minimum wage requirement for federal contractors. It applies to contracts for services or construction; contracts for services covered by the Service Contract Act (SCA); contracts for concessions; and contracts entered into with the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public. In addition, to be covered, the wages of employees under one of these contracts or contract-like instruments must be governed by the Davis-Bacon Act, the SCA, or the Fair Labor Standards Act.