Executive Order Extends Paid Sick Leave to Federal Contractors

Earlier this month, the paid sick leave epidemic that has spread to four states and at least 24 municipalities found its latest victim — federal contractors and subcontractors.  Spurred by an Executive Order (the “Order”), President Obama has tasked the Secretary of Labor with issuing final regulations by September 30, 2016.  If implemented, federal contractors and subcontractors will be required for contracts, “contract-like instruments,” and solicitations entered into after January 1, 2017 to provide their employees with at least 56 hours (i.e., seven days) of paid sick leave per year or other 12 month period used by the employer to track employee benefits.  In addition and as we previously reported, the Order states that covered businesses must allow their employees to accrue at least one hour of paid sick leave for every 30 hours of qualifying work done by the employee.

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