Proposed Sick Leave Rules for Government Contractors Published

March, 2016

By Ryan Orr, JD, HR and Compliance Consultants
Cascade Employers Association
[email protected]

On September 7, 2015, President Obama issued Executive Order 13706, which required federal contractors to provide paid sick leave to their employees. On February 25, 2016, the Department of Labor issued its proposed rules regarding the new sick leave requirements.

Some of the major points of the rule are as follows:

  • The proposed rules require contractors to provide up to 7 paid sick days to employees per year.
  • Like Oregon Sick Leave, employees must accrue time at a rate of at least 1 hour for every 30 hours worked in connection with a federal contract.
  • The accrued time may be used for an employee's own injury or illness, to care for a family member's injury or illness, or for absences related to domestic violence.
  • Employers may also frontload the time.
  • Employees must be able to carryover up to 56 hours of unused sick leave each year.
  • Accrued time need not be paid out upon separation, but it must be reinstated if the employee is rehired within 12 months of separation.
  • Finally, employees must provide their employers with at least 7 day-notice of the need for foreseeable leave and notice as soon as practicable for unforeseeable leave.

The requirements will affect all procurement contracts for construction, service, concessions, and contracts in connection with federal property or lands. However, contracts with Indian tribes, construction contracts for less than $2,000, contracts for the manufacturing or furnishing of materials, supplies, articles, or equipment to the federal government are excluded.

You can read the proposed rules and submit a comment for consideration at the following site:

The comment period will close on March 28, 2016.

For assistance with your federal contractor obligations, give us a call!


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