Government Contracts Monitor

Mandatory Paid Sick Leave for Federal Contractors Takes Effect

January 3, 2017

As Jackson Kelly has previously reported, there is significant uncertainty regarding which of the many Executive Orders signed by President Obama will still be binding after President Trump’s inauguration later this month; but some things will not change, at least in the short term. One of those is the new requirement, from Executive Order 13706, that federal contractors provide paid sick leave to their employees, which took effect January 1. This requirement will impact approximately 300,000 contractor employees, and requires federal contractors to provide up to seven days a year paid sick leave for employees working on covered federal contracts.

Employers must provide at least one hour of paid sick leave to federal contract employees for every 30 hours worked, up to 56 hours per year. Employees must be permitted, under the Order, to carry forward unused sick leave to the next year, but contractors are not required to allow their employees to “cash out” unused sick leave they have not used before terminating employment with the contractor. If an employee requests more than three consecutive days of paid sick leave, the contractor/employer may request a certification as to the need for the time off.

When the Executive Order was first signed, the Government Contracts Monitor provided an in-depth report of its provisions, which can be found here. Since this requirement has already taken effect, it is unlikely that it will change under a Trump administration, though of course with the use of the Executive Order authority, or Congressional action, such a change could happen. Meanwhile, contractors are required to comply with the Order as issued.