On February 25, 2016, the Department of Labor published a proposed rule to implement Executive Order 13706.  President Obama signed the Executive Order last fall to establish a requirement that federal contractors provide up to seven days of paid sick leave annually to their employees.  The proposed rule provides information on the Executive Order's coverage, as well as clarification regarding the accrual and use of paid sick leave.  For example, the rule establishes that contractors entering into new contracts with the Federal Government must include a clause, which the contractor and any subcontractor shall incorporate into lower tier subcontracts, requiring that the contractor and any subcontractors provide paid sick leave to employees working in connection with covered contracts.  The amount of leave that should be accrued is not less than 1 hour of paid sick leave for every 30 hours of contract work completed, and leave accrual shall be calculated "no less frequently than at the conclusion of each workweek".  Under the proposed rule, contractors would also be required to aggregate an employee's hours worked on or in connection with all covered contracts for that contractor for purposes of accrual.

 

The proposed rule also clarifies the obligations of contracting agencies, the Department of Labor, and covered federal contractors under the Order.  For example, these obligations cover the inclusion of paid sick leave contract clause language in all contracts entered into, and the posting of a notice describing this benefit at the covered federal contractor's worksite.

 

The rule details the remedies and enforcement procedures that will be implemented to ensure compliance.  For example, it provides that employees with concerns can file complaints with the Department of Labor's Wage and Hour Division.  The Wage and Hour Division is charged with investigating any complaints that are filed.  Relief including back pay, liquidated damages, the withholding of federal contract payments as necessary, may be available if violations of the Executive Order and its implementing regulations are found.

 

The Notice of Proposed Rulemaking (NPRM) requests that comments from the public be submitted within 30 days of the date of publication in the Federal Register.  This means that comments must be received on or before March 28, 2016.