Source: https://ceb.com/dol-regulations-mandate-paid-sick-leave-for-federal-contractors
Timestamp: 2019-04-20 04:33:44+00:00

Document:
The U.S. Department of Labor’s Wage and Hour Division has promulgated regulations implementing Executive Order 13706, signed by President Obama on September 7, 2015, mandating that employers that contract with the federal government provide paid sick leave to their employees, including paid leave for family care. The regulations become effective November 29, 2016, and can be found at 29 CFR §§13.1–13.58. The aim is that providing paid sick leave “will result in savings and quality improvements in the work performed by parties who contract with the Federal Government that will in turn lead to improved economy and efficiency in Government procurement.” 29 CFR §13.1(a). The Department of Labor estimates that the new paid sick leave entitlement will impact about 1.15 million workers nationwide.
• Contracts for the manufacturing or furnishing of materials, supplies, articles, or equipment to the federal government, including those subject to the Walsh-Healey Public Contracts Act (41 USC §§6501–6511).
• Until the date that the collective bargaining agreement (CBA) terminates or January 1, 2020, whichever is first, employees subject to a CBA ratified before September 30, 2016, that applies to the employee’s work performed on or in connection with a covered contract and that, each year, provides the employee with at least 56 hours (or 7 days) of paid sick time or paid time off that may be used for reasons related to sickness or health care (29 CFR §13.4(f)).
Accrual rate. Covered employees accrue 1 hour of paid sick leave for every 30 hours worked on or in connection with a covered federal contract. 29 CFR §13.5(a)(1). An exempt employee’s entitlement is calculated based on the assumption of a 40-hour workweek. 29 CFR §13.5(a)(1)(iii). Alternatively, a covered contractor may choose to provide employees with at least 56 hours of paid sick leave at the beginning of each accrual year. 29 CFR §13.5(a)(3).
Accrual cap. An employer may cap an employee’s accrual of paid sick leave at 56 hours in each “accrual year,” which is defined as a 12-month period beginning on the date that an employee’s work on or in connection with a covered contract began or any other fixed date chosen by the employer (e.g., the date that a covered contract began, the date that the contractor’s fiscal year begins, a date relevant under State law, or the date that the employer uses for determining employees’ leave entitlements under the Family and Medical Leave Act). 29 CFR §13.5(b)(1), (3).
• Reasons resulting from being the victim of domestic violence, sexual assault, or stalking or to assist a family member who is such a victim.
A full discussion of the new paid sick leave entitlement for federal contractors will appear in the next update to CEB’s Employee Leave Laws: Compliance and Litigation.
© The Regents of the University of California, 2016. Unauthorized use and/or duplication of this material without express and written permission is strictly prohibited.

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