Labor Department Releases Final Rule on Paid Leave for Federal Contractors
October 10, 2016
On September 30, the U.S. Department of Labor (DOL) published its final rule implementing the paid sick leave executive order requiring federal contractors to provide up to seven days' paid sick leave to their employees. The final rule will go into effect for new solicitations issued on or after January 1, 2017.
Contractors working under covered contracts and their subcontractors must allow covered employees to accrue one hour of paid sick leave for every 30 hours worked on or in connection with a covered contract, up to 56 hours (7 days) in a year. Employees are entitled to carry over up to 56 hours of unused leave from year to year while they work for the same contractor on covered contracts.
The rule will apply to employees of covered federal contractors who work “on” or “in connection with” a covered government contract. Note, the final paid leave rule does not cover “prime contracts for the manufacturing or furnishing of materials, supplies, articles, or equipment.” The final rule “likewise does not apply to subcontracts for the manufacturing or furnishing of materials, supplies, articles, or equipment.
The DOL’s Wage and Hour Division’s website includes information on the final rule such as a fact sheet, answers to frequently asked questions, a poster explaining EO 13706, and a video explaining the new rule.