Establishing Paid Sick Leave for Federal Contractors

2015-09-10Executive Order 13706
Signed by: Barack Obama
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Headline: Requires Federal Contractors to Provide Paid Sick Leave

What it does: Agencies must include a contract clause requiring contractors and subcontractors to provide paid sick leave accrual of one hour per 30 hours worked.

Real World Impact:
  • Employees on federal contracts can earn at least 56 hours paid sick leave yearly.
  • Allows leave for illness, medical care, family caregiving, and domestic violence needs.
  • Creates a new contract clause plus Labor Department rules and enforcement for contractors.
Topics: paid leave, government contracting, labor policy, worker health

Summary

This order requires federal contracts to include a clause making contractors and subcontractors provide paid sick leave, with employees earning at least one hour for every 30 hours worked and a minimum annual accrual of 56 hours.

Leave may be used for illness, medical care, caring for family, preventive care, and needs related to domestic violence, sexual assault, or stalking. The Labor Department must issue regulations and agencies will apply the clause to new covered contracts, with an effective date specified in the order.

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