August 21, 2019

August 21, 2019

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August 20, 2019

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August 19, 2019

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The U.S. DOL Today Released Its Final Rule Requiring Paid Sick Leave for Contractors

We are writing to alert you to yet another source of wage-hour and wage-payment claims.  EO 13706 mandates that government contractors and sub-contractors provide paid sick days in addition to any other PTO requirement (such as the vacation pay requirement contained in the Service Contract Act).  Failure to make payments could result in liability to the affected workers and also the risk of debarment proceedings.  While most employers focus upon their FLSA and state law obligations, those that perform work under federal government contracts have additional obligations and exposures.

The U.S. Department of Labor today released the final regulations implementing President Barack Obama’s Executive Order 13706, requiring up to seven days of paid sick leave for workers on federal contracts. We are analyzing the final Rule and will be providing future updates, but below are some of the key requirements.

Effective Date and Contracts Covered:

The paid sick leave requirements apply to the following types of contracts, and subcontracts, that result from solicitations issued on or after January 1, 2017:

(1) procurement contracts for construction covered by the Davis-Bacon Act (DBA);

(2) contracts for services covered by the Service Contract Act (SCA);

(3) contracts for concessions, including any concessions contract excluded from coverage  under the SCA; and,

(4) contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.

Employees Covered:

The paid sick leave requirements apply to any worker engaged in performing work on, or in connection with, a covered contract whose wages under the contract are governed by the SCA, DBA, or Fair Labor Standards Act (FLSA), including employees who are exempt under the FLSA.

Required Accrual of Paid Sick Leave

The final Rule allows employees to accrue 1 hour of paid sick leave for every 30 hours worked on, or in connection with, a covered federal contract, up to 56 hours (7 days) in a year or at any point in time.  The regulations provide requirements and guidance on leave carryover, use of sick leave, and the interplay between existing PTO policies, collective bargaining agreements, and state and local sick leave laws.

Jackson Lewis P.C. © 2019

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About this Author

Patricia Anderson Pryor, Class Action, Litigator
Principal and Office Litigation Manager

Patricia Anderson Pryor is a Shareholder in the Cincinnati, Ohio office of Jackson Lewis P.C. Ms. Pryor is an experienced litigator in both state and federal courts, representing and defending employers in nearly every form of employment litigation, including class actions.

She represents and advises employers in federal and state administrative proceedings, in all forms of dispute resolution, including mediation and arbitration, and in managing all aspects of the employment relationship. She has represented...

513-322-5035
Leslie Stout-Tabackman, Labor Employment Attorney, Shareholder, Jackson Lewis Law Firm
Shareholder

Leslie Stout-Tabackman is a Principal in the Washington, D.C. Region office of Jackson Lewis P.C. She has a broad-based practice counseling and representing employers on compliance with federal and state workplace laws and regulations, and designing and implementing sound practices and policies.

Ms. Stout-Tabackman regularly counsels and represents clients with matters before the U.S. Department of Labor’s (DOL) Wage and Hour Division, including Fair Labor Standards Act (FLSA) issues and prevailing wage and benefits issues arising under the Service Contract Act (SCA) and the Davis-Bacon Act (DBA). Her prevailing wage practice includes counseling federal contractors and providing comprehensive training on SCA and DBA prevailing wages and benefits requirements, coverage, exemption and worker classification issues, and related contracting procedures from the solicitation and bid stage through completion of the contract. Her wage and hour practice includes advising clients on compliance with the minimum wage and overtime obligations of the FLSA and state wage and hour laws, including classification of positions as exempt or nonexempt, overtime requirements for nonexempt employees, compensation policies for exempt employees, conducting voluntary FLSA compliance audits,and providing education and training sessions for clients on these topics. She regularly represents clients facing DOL FLSA, SCA and DBA audits and has advised and represented clients on these matters before the DOL’s Administrative Review Board.

703-483-8345