Paid Sick Leave for Federal Contractors
The Department of Labor’s Wage and Hour Division (DOL) recently issued the final rule; Establishing Paid Sick Leave for Federal Contractors. The final rule requires federal contractors to provide employees with up to seven days (56 hours) of paid sick leave in a year, including paid leave for family care. The rule will impose substantial new obligations on many employers beginning January 1, 2017.
The paid sick leave required by the final rule are in addition to the contractor’s sick leave responsibilities under the Davis-Bacon Act (DBA) and Service Contract Act (SCA).
The DOL explains the final rule will “improve the health and performance of employees” and will “bring benefits packages offered by those companies in line with leading firms, ensuring they remain competitive in the search for dedicated and talented employees.”
Because the federal paid sick leave rule will precede the paid sick leave plans under DBA, a contractor may not receive credit toward its prevailing wage or fringe benefit program.
This change will greatly effect contractors that do any type of federal work.