An executive order issued in 2015 requires federal contractors and subcontractors to provide paid sick leave to their employees. The requirement applies to certain procurement and service contracts, including contracts for construction, Service Contract Act (SCA) covered services, concessions, and contracts connected to federal property or lands that offer services to federal employees, their dependents, or the public.
Accrual of Sick Leave
Under the order, sick leave accrues at a rate of one hour for every 30 hours worked, and employers may cap accrual at 56 hours (seven days) per year.
Unused sick leave must carry over from year to year and generally must be reinstated for employees rehired by a covered contractor within 12 months after a job separation. Employers are not required to pay out unused accrued sick leave at termination.
Use of Sick Leave
- For the employee's own illness, injury, medical condition, or when the employee needs diagnosis, care, or preventive care.
- To care for a child, parent, spouse, domestic partner, or "any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship" who has an illness, injury, or medical condition or who needs diagnosis, care, or preventive care.
- For situations involving domestic violence, assault, or stalking that result in illness, injury, or the need for diagnosis, care, or preventive care.
- To obtain counseling, seek relocation, obtain assistance from a victim services organization, or take related legal action for the employee or one of the above-listed individuals in domestic violence, assault, or stalking situations.
Requests for Leave
Requests for sick leave may be made orally or in writing and should include the expected duration of the leave. If the need for leave is foreseeable, at least seven calendar days' advance notice is required; if not foreseeable, notice must be given as soon as practicable.
Paid sick leave cannot be made contingent on the requesting employee finding a replacement to cover missed work. Employers are prohibited from interfering with or discriminating against an employee for taking or attempting to take paid sick leave, or for assisting another employee in asserting sick-leave rights.
If an employee is absent for three or more consecutive days on paid sick leave, a contractor may request a certification from a health care provider for medical-related absences or from an appropriate individual or organization for absences related to domestic violence, sexual assault, or stalking. The certification must be provided no later than 30 days from the first day of leave.
Going Forward
The order required the Department of Labor to issue implementing regulations, and contractors should continue to monitor federal guidance for any updates or clarifications. Covered contractors in many trades — from High Tech Contractors Insurance to Site Preparation (Contractors) — should review their policies and payroll practices to ensure compliance.
For practical assistance implementing these requirements, talk to an agent.
Frequently Asked Questions
Who is covered by the paid sick leave requirement?
Covered employers are federal contractors and subcontractors on applicable procurement, service, concession, or federal property contracts as defined by the order.
How much paid sick leave do employees earn?
Employees accrue one hour of sick leave for every 30 hours worked, with employers allowed to cap accrual at 56 hours per year.
Does unused sick leave carry over between years?
Yes, unused sick leave generally carries over from year to year and must be reinstated for rehired employees within a specified rehire period.
Can employers require documentation for short absences?
Employers may request certification for absences of three or more consecutive days; for shorter absences, routine documentation requirements are typically not required.