Federal Contractors be warned — President Obama signed an Executive Order this week requiring federal contractors to provide paid sick leave.  The new requirement will not go into effect until January 2017.

The impact of this Executive Order may be less than feared — many federal contractors are already required to provide paid leave under the Service Contract At and the Davis-Bacon Act.  But the terms and amount of leave required may be altered by this new requirement, and contractors not subject to those laws who are not already offering paid leave will need to adjust their polices.

The Executive Order will require accrual of an hour of paid leave for every 30 hours worked.  The leave can be used to care for the worker or his/her family members, and leave can be carried over from year to year (and potentially contractor to contractor).