Federal contractor or subcontractor employers who enter into, renew, modify, or extend a covered federal contract on or after January 1, 2017 must establish annual paid sick leave for federal-contract employees under the Department of Laborâ€™s final rule implementing Executive Order 13706. Covered federal contracts* include: â€¢ Procurement Contracts for Construction under the Davis-Bacon Act (DBA) â€¢ Service Contracts under the McNamara-Oâ€™Hara Service Contract Act (SCA) â€¢ Concessions Contracts, including any concessions contracts excluded from SCA â€¢ Federal Property or Land Contracts offering services for federal employees, their
dependents, or the general public
Federal-contract employees may use accrued paid sick leave for (1) physical or mental illness, injury, or medical condition of the employee; (2) obtaining a diagnosis, care, or preventative care from a health care provider; (3) caring for the employeeâ€™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 need for diagnosis, care, or preventative care described in (1) or (2) above; or (4) addressing domestic violence, sexual assault, or stalking, if the time absent from work meets the conditions in (1) or (2) above or is needed to obtain additional counseling, seek relocation, seek assistance from a victim services organization, take related legal action, or assist an individual related to the employee in any of these activities.
All covered federal contracts must meet minimum federal requirements, with federal guidelines superseding any conflicting state/local laws. Employers not in compliance could be subject to enforcement procedures, including DOL investigations that may result in damages to affected employees and potential sanctions for violations.
*The new rule does contain some narrow exceptions and exclusions. Employers must carefully review their potentially covered contracts to determine if they qualify.
*Employers may adopt more generous programs if minimum federal requirements are met.
For more information about the rule, please contact Randy Avram at 919.420.1812 or firstname.lastname@example.org.
The new rule mandates that federal-contract employees accrue at least* one hour of paid sick leave for every 30 hours worked with the ability to carry over accrued, unused paid sick leave from year to year. Employers may cap the amount of accrued paid sick leave available at 56 hours at any one time. Employers already providing 56 hours of annual paid sick leave under a collective bargaining agreement may defer rule implementation until their collective bargaining agreement terminates or January 1, 2020, whichever comes first.
If foreseeable, employees must request paid sick leave in writing at least seven days in advance. If not foreseeable, employees should submit requests as soon as practicable. Request denials must be communicated in writing, documenting the reason. If sick leave consists of three or more consecutive days, the employer may require certification of the reason for the absence, provided the employer gives notice of the certification requirement before the employee returns to work.
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