Executive Order Requiring Sick Leave for Federal Contractors.

Benefits Insights, Fall 2015

President Obama recently issued an Executive Order (EO) that will require Federal contractors to provide paid sick leave to their employees beginning in 2017. This means that Federal contract workers will soon be able to earn one hour of leave for every 30 hours worked, accruing 7 days or more of paid sick leave annually.

The EO specifies that workers can use the paid sick leave to care for themselves, a family member, such as a child, parent, spouse, or domestic partner, or another loved one, as well as for absences resulting from domestic violence, sexual assault, or stalking.

Upon issuing the EO, Obama stated that it seeks to increase efficiency and cost savings in the work performed by parties that contract with the Federal Government by ensuring that employees on those contracts can earn at least 7 days of paid leave, including for family care.

During his announcement of the EO, Obama also called upon Congress to approve the Healthy Families Act, which would require all businesses that have 15 or more employees to offer 7 paid sick days each year.

The Secretary of Labor has been tasked with establishing the regulations and implementation necessary to carry out this EO by Sept. 30, 2016. In the meantime, federal contractors should review their sick leave policies to determine what changes may be needed to ensure they are in full compliance.

More information can be found at:

Executive Order Requiring Sick Leave for Federal Contractors