The United States Department of Labor (“DOL”) will soon be publishing its final rule that will require federal contractors to provide paid sick leave to their employees. The final rule, which the DOL will publish by September 30, 2016, will likely follow the proposed rule (see related article) and require employers entering into new or renewed contracts with the government after January 1, 2017 to provide one hour of paid sick leave for every thirty (30) hours of work.[i]
It is anticipated that employees will be permitted to accrue up to fifty-six (56) hours of paid sick leave per year, which may be carried over from one year to the next, but employers will not be required to pay out unused sick leave at the end of the contract or at the end of the employee’s employment.[ii] Employees will be able to use paid sick leave for themselves or to care for family members who are sick with: (1) physical or mental illness, injury, or medical conditions; (2) diagnosis, care, or preventative needs; or (3) counseling, assistance, or relocation needs resulting from domestic violence, sexual assault, or stalking.[iii] Campbell Litigation will continue to track the paid sick leave rule and provide further updates when the DOL publishes the final rule. Federal contractors should contact their labor and employment counsel with any questions.
[i] 29 CFR Part 13, RIN 1235-AA13.
[ii] Id. For employees that return to the job within twelve (12) months of separation, the employee’s accrued paid leave must be available to the employee.
[iii] Id. See also Ben Penn, Contractor Paid Sick Leave Rule Sent for White House Review, Bloomberg BNA Daily Labor Report (July 25, 2016).