Establishing Paid Sick Leave for Federal Contractors

Sep 10, 2015
Sep 10, 2015

Summary

Makes companies with government contracts give their workers paid time off when they are sick or need to care for family.

What problem does this solve?

Many workers on federal contracts do not get paid when they are sick, which can harm their health and job performance. This order requires contractors to provide paid sick leave, improving worker well-being and making government work more efficient.

What does this order do?

Establishes a sick leave accrual rate
Requires that employees earn at least 1 hour of paid sick leave for every 30 hours they work.
Sets a minimum annual leave amount
Ensures employees can build up at least 56 hours, or 7 days, of paid sick leave per year.
Defines approved uses for sick leave
Allows leave to be used for an employee's own illness, to care for a sick family member, or for needs related to domestic violence, sexual assault, or stalking.
Allows sick leave to carry over
Mandates that any unused paid sick leave must be carried over from one year to the next.
Reinstates leave for rehired employees
Requires that unused leave be restored for employees who are rehired by the same contractor within 12 months of leaving their job.
Prohibits retaliation against employees
Forbids contractors from punishing or discriminating against an employee for using or trying to use their paid sick leave.
Limits when a doctor's note is required
States that a contractor can only ask for a doctor's note if an employee is absent for 3 or more consecutive workdays.
Prevents making employees find replacements
Stops employers from requiring an employee to find a replacement worker before they can use their paid sick leave.

Who does this affect?

  • Employees of federal contractors
  • Federal contracting companies
  • Federal government agencies

What is the real world impact?

Improves government efficiency
Ensures federal contractors offer competitive benefits, helping them attract and keep talented employees. This leads to better quality work and cost savings for the government by having a healthier, more stable workforce.
Sets a national labor standard
Uses the government's power as a major customer to push for broader social policy changes. Critics might argue this bypasses the normal legislative process and could increase costs for businesses, which may be passed on to taxpayers.

When does this start?

This order applies to new government contracts starting on or after January 1, 2017, and sets other deadlines for government agencies.
Regulations from Secretary of Labor
The Secretary of Labor must create rules to carry out this order by September 30, 2016.
Effective date for new contracts
The paid sick leave rules apply to new contracts where the request for bids is issued on or after January 1, 2017.