Tuesday, October 11, 2016

DOL Issues Final Rule Implementing EO on Government Contractor Paid Sick Leave

Dana Halvorson


According to an alert from Jackson Lewis, the U.S. Department of Labor (DOL) has released final regulations on September 30, 2016, implementing President Barack Obama’s Executive Order 13706, requiring up to seven days of paid sick leave for workers on federal contracts. The Department estimates that the Final Rule will provide paid sick leave to about 1.15 million workers employed by Federal contractors. The Final Rule specifies the contracts and employees covered by the EO, as well as rules for how sick leave will accrue, when it can be used, and how the Department will ensure that covered employers comply with these new requirements.

Executive Order 13706 applies to new contracts and replacements for expiring contracts with the Federal Government that result from solicitations issued on or after January 1, 2017 (or that are awarded outside the solicitation process on or after January 1, 2017). Key requirements of the final rule are discussed in the Jackson Lewis article and this Employee Benefit Adviser article. In addition, DOL has released a fact sheet and frequently asked questions you might find of assistance.


As you know from previous AHCA communications, Medicare (Parts A and B) or Medicaid providers are not considered to be federal contractors. However, if a provider currently has VA patients and a VA contract, they are considered to be a federal contractor. Since VA contracts are covered by the Service Contract Act, this Executive Order applies to such contracts. AHCA continues to work with our Congressional champions on getting VA provider agreements across the finish line, and taking those with VA contracts out of the scope of being deemed a federal contractor.

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