New Rule From Labor Department Effective January 1, 2017

October 4, 2016

Federal Contractors Must Give Paid Leave Under Final Rule

Source: Bloomburg BNA, Ben Penn, September 30, 2016

Paid sick leave must be provided to employees on federal contracts awarded starting Jan. 1, 2017, under a new final rule from the Labor Department.

The regulation, which implements President Barack Obama’s executive order, marks the administration’s latest use of procurement authority to alter workplace policies that aren’t moving in Congress.

Contractors’ employees will receive at least 56 hours of paid leave per year for a personal illness or to care for a family member.

The administration estimates that 600,000 employees without paid leave will be eligible for the new benefits, significantly more than the 437,000 workers projected in the proposed version issued in February. If the DOL counts workers on federal contracts who already get some paid leave, but less than 56 hours, the number of directly affected workers rises to 1.15 million, the agency said.

Subdued Controversy

The executive order and implementing rules have drawn sharp criticism from the business community, which cited onerous compliance challenges and cautioned that the rule might lead contractors that already provide leave benefits to offer less generous policies. But public controversy over the paid leave mandate hasn’t risen to the level of debate over other recent labor regulations, such as a rule to expand workers’ access to overtime pay.   READ MORE….

Contact your nearest PTAC to learn more about government contracting and how this final rule will affect your business.


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