New Provisions Generally Applicable to New Contracts in 2017
Under a new Executive Order applicable to covered contracts where the solicitation for such contract has been issued (or the contract has been awarded outside the solicitation process) on or after January 1, 2017, workers on such contracts will earn a minimum of 1 hour of paid sick leave for every 30 hours worked.
Accrual of Leave
- Executive departments and agencies generally must ensure that new contracts, contract-like instruments, and solicitations (collectively referred to as “contracts”) include a clause—which the contractor and any subcontractors must incorporate into lower-tier subcontracts—specifying, as a condition of payment, that all employees must earn at least 1 hour of paid sick leave for every 30 hours worked.
- A contractor may not set a limit on the total accrual of paid sick leave per year (or at any point in time) at less than 56 hours.
- Accrued paid sick leave must carry over from 1 year to the nextand must be reinstated for employees rehired by a covered contractor within 12 months after a job separation.
- The Executive Order does not require a covered contractor to make a financial payment to an employee upon a separation from employment for accrued sick leave that has not been used (but unused leave is subject to reinstatement as described above).
Use of Leave
- Paid sick leave may be used for an absence resulting from physical or mental illness, injury, or medical condition; obtaining diagnosis, care, or preventive care from a health care provider; caring for certain relatives; or for certain instances related to domestic violence, sexual assault, or stalking.
- Paid sick leave must be provided upon an employee’s oral or written request that includes the expected duration of the leave, and is made at least 7 calendar days in advance where the need for the leave is foreseeable (and in other cases as soon as is practicable).
Note: The U.S. Department of Labor (DOL) is expected to issue regulations that, among other things, may provide definitions, recordkeeping requirements, and further guidance on the specific types of contracts and contract-like instruments subject to the Executive Order.
Additional information and requirements are available in the text of theExecutive Order.
Our Compliance Assistance for Federal Contractors page features helpful resources for federal contractors and subcontractors.