To follow up on our report last month, President Obama has signed an Executive Order requiring federal contractors to give their workers the ability to earn up to seven days (56 hours) of paid sick leave each year.  The executive order will go into effect on January 1, 2017 and instructs the U.S. Secretary of Labor to issue regulations to implement the executive order by September 30, 2016.

The Order will apply to employees whose wages are governed by the Davis-Bacon Act, the Service Contract Act or the Fair Labor Standards Act, including those that qualify for minimum wage and overtime exemptions under the FLSA.

For these covered employees, the Order will apply to new contracts or contract-like instruments, as defined by the Secretary of Labor in the regulations, if the contract is:

  1. a procurement contract for services or construction;
  2. a contract or contract-like instrument for services covered by the Service Contract Act;
  3. a contract  or contract-like instrument for concessions, including any concessions contract excluded by Department of Labor regulations;
  4. a contract or contract-like instrument entered into with the Federal Government in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.

Other details of the Order include:

  • An hour of paid leave is earned for every 30 hours of work
  • Leave can be used care for the worker or family members;
  • Unused leave can carry over from year to year;
  • Unused leave will be reinstated for employees rehired by a covered contractor within 12 months after a job separation;
  • Payment for unused leave upon job separation is not required

The Order also explicitly states “it does not supersede other federal, state, or local laws or collective bargaining agreements that provide greater benefits.”

Stay tuned for updates on proposed regulations and what will sure to be other developments in this area.

 

 

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Photo of Laura A. Mitchell Laura A. Mitchell

Laura A. Mitchell is a Principal in the Denver, Colorado, office of Jackson Lewis P.C. She is a member of the firm’s Affirmative Action and OFCCP Defense practice group as well as the firm’s Pay Equity Resource Group. She is also on the…

Laura A. Mitchell is a Principal in the Denver, Colorado, office of Jackson Lewis P.C. She is a member of the firm’s Affirmative Action and OFCCP Defense practice group as well as the firm’s Pay Equity Resource Group. She is also on the leadership team for the firm’s Government Contractor Industry Group.

Her practice is focused on representing government and non-government contractors in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. Ms. Mitchell personally oversees the development of hundreds of AAPs each year and is intimately involved in the defense of numerous OFCCP audits. She also spends significant time counseling companies in connection with conducting pay equity analyses as well as government contractor employment obligations.

Ms. Mitchell is the editor and a principal contributor of The Affirmative Action Law Advisor blog and frequently presents on pay equity, affirmative action compliance, OFCCP enforcement trends, and government contractor obligations.

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