DOL Proposes New Paid Sick Leave Rule for Federal Contractors Pursuant to Executive Order

Employment Law

The Department of Labor published a proposed rule this week that would require federal contractors to provide not less than one hour of paid sick leave for every 30 hours an employee performs work on, or in conjunction with, a federal contract.  The new mandate, which implements President Obama’s Executive Order 13706, will be effective for all new and renewed federal contracts beginning January 1, 2017.  Meanwhile, federal paid leave legislation has stalled in Congress as state and local initiatives are gaining momentum across the country, with Vermont poised to become the fifth state to enact a paid sick leave law.  Some Republicans in Congress have said they would prefer to offer tax incentives to employers for providing paid leave to their workers, and Senators Deb Fischer (R-NE) and Angus King (I-ME) have introduced legislation (S. 2354) that would provide a tax credit to employers offering paid family and medical leave.  Following an unusually short 30-day public comment period, DOL will have until September 30th to issue a final rule, as required by the executive order.  The HR Policy Association will be submitting comments.  A DOL Fact Sheet and FAQs on the proposed rule are also available.