The Sophisticated Employer Blog

While you were enjoying your Labor Day, President Obama signed an Executive Order that will require all federal contractors to provide employees a minimum of seven paid sick days annually. 

The annual paid sick leave will be included “to the extent permitted by law” in all federal contracts entered into after Jan. 1, 2017.

Sick time will be earned at not less than one hour for every 30 hours worked, and the total accrual may not be limited to less than 56 hours. Employees will be able to use sick time for absences resulting from:

• Their own physical or mental illness, injury or medical condition

• For obtaining diagnosis, care or preventive care

• Caring for a child, parent, spouse, domestic partner or any other individual related by blood or affinity who close association is equivalent of a family relationship

Paid sick time will need to be requested at least seven days in advance if the need is foreseeable, or as soon as practicable if not.

Paid sick time will carry over from year to year.  However, unused time will not have to paid-out upon termination, but it will need to be reinstated if the employee is rehired within 12 months of termination.

Regulations will be drafted to further explain the requirements.