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

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with…

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with employers to build programs that benefit employees and create a stable, high-functioning workplace. Understanding that an inclusive, values-based culture provides a crucial competitive advantage in the modern workplace, Laura enjoys counseling companies on the development of proactive and equitable pay and diversity practices.

In Laura’s version of the reimagined workplace, attention to human capital issues, especially DEI and pay equity, would be the rule rather than the exception nationwide and she works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize this vision for her clients’ ongoing success. She helps clients understand all issues across the spectrum of their journey, helping to establish regular analyses as well as counseling organizations on implementation and compliance obligations, where applicable. Committed to putting her clients’ organizational goals first and foremost, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication.

Laura also represents companies in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. She personally oversees the development of hundreds of Affirmative Action Plans for clients each year and is intimately involved in the defense of OFCCP audits. Her approach to compliance is one of facilitation and conciliation while simultaneously advocating in the best interests of her clients.