Sick Leave for
Federal Contractors Employees
On September 7, 2015, President Obama signed an
executive order requiring businesses that contract with
the Federal Government to provide their employees up to 7
days or more of paid sick leave annually (or no less than 1
hour of paid sick leave earned for every 30 hours worked).
The order will apply to prime contractors and
sub-contractors at any level.
The order goes into effect immediately.
Contracts already awarded are not impacted by this
contracts must comply with this order.
The Department of Labor is tasked with developing and
publishing regulations concerning this order by September
For contracts or contract-like instruments covered by the
Service Contract Act or the Davis-Bacon Act, this order
shall apply only to contracts or contract-like instruments
at the thresholds specified in those statutes.
For procurement contracts in which employees' wages are
governed by the Fair Labor Standards Act, this order shall
apply only to contracts or contract-like instruments that
exceed the micro-purchase threshold, as defined in 41 U.S.C.
1902(a), unless expressly made subject to this order
pursuant to regulations or actions taken under section 3 of
This order shall not apply to grants; contracts and
agreements with and grants to Indian Tribes under the Indian
Self-Determination and Education Assistance Act (Public Law
93-638), as amended; or any contracts or contract-like
instruments expressly excluded by the regulations issued
pursuant to section 3(a) of this order.
Under the order employees must be allowed to accumulate at
least 56 hours per year.
Employees may use the sick leave for:
(i) physical or mental illness, injury, or medical
(ii) obtaining diagnosis, care, or preventive care from a
health care provider;
(iii) caring for a child, a parent, a spouse, a domestic
partner, or any other individual related by blood or
affinity whose close association with the employee is the
equivalent of a family relationship who has any of the
conditions or needs for diagnosis, care, or preventive care
described in paragraphs (i) or (ii) of this subsection or is
otherwise in need of care;or (iv) domestic violence, sexual
assault, or stalking, if the time absent from work is for
the purposes otherwise described in paragraphs (i) and (ii)
of this subsection, to obtain additional counseling, to seek
relocation, to seek assistance from a victim services
organization, to take related legal action, including
preparation for or participation in any related civil or
criminal legal proceeding, or to assist an individual
related to the employee.
Paid sick leave accrued under this order shall carry over
from 1 year to the next and shall be reinstated for
employees rehired by a covered contractor within 12 months
after a job separation.
According to the order the paid sick leave required by this
order is in addition to a contractor's obligations under 41
U.S.C. chapter 67 (Service Contract Act) and 40 U.S.C.
chapter 31, subchapter IV (Davis-Bacon Act), and contractors
may not receive credit toward their prevailing wage or
fringe benefit obligations under those Acts for any paid
sick leave provided in satisfaction of the requirements of
A contractor's existing paid leave policy provided in
addition to the fulfillment of Service Contract Act or
Davis-Bacon Act obligations, if applicable, and made
available to all covered employees will satisfy the
requirements of this order if the amount of paid leave is
sufficient to meet the requirements of this section and if
it may be used for the same purposes and under the same
conditions described herein.
As a federal contractor employer you may only require
certification issued by a health care provider for paid sick
leave used for employee absences of 3 or more consecutive
workdays, to be provided no later than 30 days from the
first day of the leave.
When an employee leaves the organization the employer is not
required to pay them for unused sick leave.