On September 29, 2016, the Department of Labor (“DOL”) issued regulations (the “final rule”) implementing Executive Order 13706, which requires federal contractors to provide paid sick leave to their employees. According to the DOL, federal contractors employ 1.15 million individuals—594,000 of whom do not receive paid sick leave. Thus, for contractors who do not currently provide paid sick leave to their employees, the final rule imposes significant administrative and financial burdens. Given the nuanced requirements of the final rule, however, even contractors who currently provide some form of paid sick leave to employees may find compliance with the final rule burdensome. Contractors should act now to either develop paid sick leave policies or determine what changes need to be made to their current paid leave policies to ensure they are in compliance with the final rule once it becomes effective.
