Labor Department Issues Final Rule Requiring Covered Federal Contractors To Provide Employees With up to 56 Hours of Paid Sick Leave Annually

The Department of Labor (DOL) has issued a final rule implementing the requirements of President Obama’s 2015 Executive Order (E.O.) 13706, Establishing Paid Sick Leave For Federal Contractors.  The E.O goes into effect for covered contracts entered into on or after January 1, 2017.

The final rule, published in the Federal Register on September 30, 2016, makes only minor improvements to a proposed rule published by DOL last February, and requires covered federal contractors and subcontractors to allow eligible employees to accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 56 hours per year, for either themselves or to care for a broadly defined “family member.”

NT Lakis attorneys filed extensive comments with DOL on its proposal, and we are pleased to report that some of the changes contained in the final rule are responsive to our recommendations.  Nevertheless, for covered contractors, even for those that provide paid leave benefits equal to or greater than the rule requires, the rule will impose a substantial additional compliance burden.

A copy of the final rule, including DOL’s discussion of changes and the text of the mandatory contract clause (Appendix A), can be found here.

Members of the Equal Employment Advisory Council (EEAC) can read more here.