Federal Contractors Stay Alert!

Paid Leave

On and after January 1, 2017, new solicitations and resulting covered
contracts (mainly those under the Service Contract Act and Davis-Bacon Act) can
include a clause obligating contractors to provide 56 hours of paid sick leave
to employees working on covered contracts.  Leave will be accrued at the rate of 1 hour for
every 30 hours worked.  The new paid
leave requirements do not apply to pre-existing contracts that are in effect in
2017.  The required leave must be in
addition to
vacation time provided under a Wage Determination.

As the Paid Leave rule is the product of an Executive Order (E.O.13706),
it can be rescinded by President Trump, should he decide to do so.  However, there is ambiguity about his Administration’s
plans for paid leave, in general, and whether this form of Paid Leave is part
of those plans.

Pay Transparency

Although the
most onerous elements of the “blacklisting” regulations were enjoined, the new
paycheck transparency requirements under the “Fair Pay and Safe Workplaces”
Executive Order (E.O. 13673) were NOT enjoined and will be effective beginning
January 1, 2017. The requirements will apply to all new federal
procurement contracts and subcontracts of $500,000 or more. Covered
contractors must inform employees of hours worked, overtime hours (for
non-exempt employees) by workweek and totaled for pay period, pay, deductions,
and must identify exempt employees and independent contractors.  Contractors already complying with state laws
with comparable disclosure requirements (such as California and D.C.), are
considered in compliance with the new federal pay transparency standard.

 “Fair
Pay and Safe Workplaces” Executive Order is also subject to rescission and is
likely to be acted on.  However, the injunction
may delay executive action.

If you have
any questions, please contact Burt Fishman (bjfishman@fortneyscott.com) or your FortneyScott
lawyer.  We will be keeping you apprised
of any new developments.