Federal Contractor Paid Sick Leave: Overview of Proposed Rules

Posted April 12, 2016 Industry Insights, Expert Tips, Company News

Paid sick leave for federal contractors will be implemented for new and replacement contracts resulting from solicitations issued on or after January 1, 2017, according to proposed rules released by the Department of Labor (DOL).

Executive OrderProcurement contracts for construction covered by the Davis-Bacon Act (DBA);

  • Concessions contracts, including any concessions contracts excluded from the SCA by DOL’s regulations at 29 CFR 4.133(b); and
  • The regulations will include a narrow exemption for employees who:


  • perform work duties necessary to the performance of the contract.
  • Subject only to DBA-Related Acts
  • Contracts with Indian Tribes
  • Performed outside the United States

Prime contractors must meet dollar thresholds to be covered

Dollar thresholds that must be satisfied before prime contractors would be covered:

  • SCA- $2,000
  • With physical or mental illness; injury or medical condition;
  • Caring for a child, parent, spouse, domestic partner or other individual equivalent* who has any of the conditions or needs diagnosis, care, or preventive care from a healthcare provider or is otherwise in need of care;
  • Certification can only be required by the employer for requested leave of three or more consecutive work days used and it must be provided by the employee no later than 30 days from the first day of leave.Impacted contractors should be prepared to implement this new requirement in 2017.

    HBI will follow this new ordinance closely and will report on new developments as they become available.

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