View Rule

View EO 12866 Meetings Printer-Friendly Version     Download RIN Data in XML

DOL/WHD RIN: 1235-AA13 Publication ID: Spring 2016 
Title: Establishing Paid Sick Leave for Contractors, Executive Order 13706 
Abstract:

Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors (80 FR 54697) establishes paid sick leave for Federal contractors and subcontractors. The Executive order indicates that Executive Departments and agencies shall, to the extent permitted by law, ensure that new contracts, contract-like instruments, and solicitations as described in section 6 of the order, include a clause, which the contractor and any subcontractors shall incorporate into lower-tier subcontracts, specifying that all employees, in the performance of the contract or any subcontract thereunder, shall earn not less than one hour of paid sick leave for every 30 hours worked. Consistent with the Executive order, the Department of Labor will issue implementing regulations.

 
Agency: Department of Labor(DOL)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Yes  Unfunded Mandates: Private Sector 
EO 13771 Designation: uncollected 
CFR Citation: Not Yet Determined     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: Not Yet Determined   
Legal Deadline:
Action Source Description Date
Final  Statutory    09/30/2016 

Overall Description of Deadline: Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors (80 FR 54697).

Statement of Need:

On September 7, 2015, President Barack Obama signed Executive Order 13706 Establishing Paid Sick Leave for Federal Contractors. The Executive order states that the order seeks to increase efficiency and cost savings in the work performed by parties that contract with the Federal Government by ensuring that employees on those contracts can earn up to 7 days or more of paid sick leave annually, including paid leave allowing for family care. The order states that providing access to paid sick leave will improve the health and performance of employees of Federal contractors and bring benefits packages at Federal contractors in line with model employers, ensuring that they remain competitive employers in the search for dedicated and talented employees. The order indicates that [t]hese savings and quality improvements will lead to improved economy and efficiency in Government procurement.

Summary of the Legal Basis:

Section 2 of the Executive order states that Executive Departments and agencies shall, to the extent permitted by law, ensure that new contracts, contract-like instruments, and solicitations (collectively referred to as contacts), as described in section 6 of the order, include a clause, which the contractor and any subcontractors shall incorporate into lower-tier subcontracts, specifying, as a condition of payment, that all employees in the performance of the contract or any subcontract thereunder, shall earn not less than 1 hour of paid sick leave for every 30 hours worked. The order goes on to indicate that a contractor may not set a limit on the total accrual of paid sick leave per year, or at any point in time, at less than 56 hours. The order goes on to describe the purposes for which the employee may use the paid the sick leave. The Executive order requires the Secretary of Labor to issue regulations implementing the Executive order by September 30, 2016.

Alternatives:

To be determined.

Anticipated Costs and Benefits:

The Executive order indicates benefits associated with the paid sick leave Executive order include improved health and performance of employees of Federal contractors, ensuring that contractors remain competitive in line with model employers, and improved economy and efficiency in Government procurement. 

Costs will be determined as part of the NPRM.

Risks:

To be determined.

Timetable:
Action Date FR Cite
NPRM  02/25/2016  81 FR 9592   
NPRM Comment Period End  03/28/2016 
NPRM Comment Period Extended  03/14/2016  81 FR 13306   
NPRM Comment Period Extended End  04/12/2016 
Final Rule  09/00/2016 
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: Federal 
Small Entities Affected: Businesses, Governmental Jurisdictions  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: Yes 
Agency Contact:
Robert Waterman
Compliance Specialist
Department of Labor
Wage and Hour Division
200 Constitution Avenue NW., Room S-3010,
Washington, DC 20210
Phone:202 693-0805
Email: waterman.robert@dol.gov