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.