An Executive Order (EO 13706) issued in 2015 requires federal contractors and subcontractors to provide paid sick leave to employees. The EO applies to contracts entered into after January 1, 2017 that are procurement contracts for services or construction; contracts for services covered by the Service Contract Act (SCA); contracts for concessions; and contracts in connection with federal property or lands related to offering services for federal employees, their dependents, or the general public.
Accrual of sick leave
Sick leave accrues at a rate of one hour for every 30 hours worked. Employers may cap accrual at 56 hours (seven days) per year.
Unused sick leave must carry over from one year to the next, and accrued leave must be reinstated for employees rehired by a covered contractor within 12 months after a job separation. Unused accrued sick leave does not have to be paid out upon termination.
Use of sick leave
- For the employee's own illness, injury, or medical condition, or to obtain diagnosis, care, or preventative 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, when that person has an illness, injury, or medical need.
- For situations involving domestic violence, assault, or stalking that result in an illness, injury, or the need for diagnosis, care, or preventative services.
- To obtain counseling, seek relocation or 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.
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 rights to sick leave.
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, employees should provide at least seven calendar days' advance notice; 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 time. If an employee is absent for three or more consecutive days, the contractor may request certification from a health care provider (for medical conditions) or from an appropriate organization or individual (for domestic violence, sexual assault, or stalking); the certification must be provided no later than 30 days from the first day of leave.
Going forward
Implementing regulations have been issued and employers should monitor Department of Labor guidance for updates and compliance expectations. For additional perspective on how paid sick leave fits into contractor responsibilities and insurance considerations, see Contractors: tech adoption, insurance exclusions, worker classification, paid sick leave, and workers' comp audits.
Contractors that need information about insurance options related to contracting work can review resources such as Site Preparation (Contractors) Insurance to understand coverage considerations.
If you have specific questions about how these requirements affect your business, consider discussing them with an insurance professional or to talk to your agent about coverage and compliance support.
Frequently Asked Questions
Who is covered by the executive order?
Employees of federal contractors and subcontractors on covered contracts are eligible for paid sick leave under the order's scope; coverage depends on the type and start date of the contract.
How is paid sick leave accrued?
Sick leave accrues at one hour for every 30 hours worked, with employers permitted to cap accrual at 56 hours per year.
Can an employer require documentation for short absences?
Employers may request certification only for absences of three or more consecutive days related to medical conditions or qualifying domestic violence situations.
Is unused sick leave paid out when employment ends?
No, employers are not required to pay out unused accrued sick leave upon termination under the order's rules.