On February 25th, 2016, the U.S. Department of Labor’s Wage and Hour Division published a notice of proposed rulemaking (“NPRM”) to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. The NPRM is requesting that any comments regarding the NPRM be submitted by March 26, 2016 (30 days after publication in the Federal Register).
The proposed rule will apply to employers entering into new contracts (meaning the solicitation was issued or contract was awarded on or after January 1, 2017) covered by the Service Contract Act or the Davis-Bacon Act, concessions contracts and service contracts in connection with federal property or lands. As proposed, contract coverage would be the same as Executive Order 13658, Establishing a Minimum Wage for Contractors, with some exceptions.
The rule will require that employees working on the performance of a government contract would be able to accrue 1 hour of paid sick leave for every 30 hours worked, up to 56 hours (7 days) in a year. The leave can be used as FMLA leave can be used. Existing PTO plans that meet these standards will satisfy the requirement of the proposed rule.
If you have any questions with regard to this proposed rulemaking, please feel free to contact a FortneyScott attorney.
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