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DOL Issues Paid Sick Leave Final Rule

November 3, 2016

The U.S. Department of Labor (DOL) issued its final rule that requires federal contractors to provide paid sick leave. The sick leave final rule implements Executive Order 13706, signed by President Obama back in Sept. 2015, to require contractors to provide up to 56 hours of paid sick leave annually to their employees beginning in 2017. A covered employee can earn one hour of paid sick leave for every 30 hours worked.

The final rule allows employees to use paid leave in cases of illness or injury of the employee or a family member; the need to obtain a diagnosis or receive medical care; or the need for leave results from domestic violence, sexual assault, or stalking.

The final rule will apply to all covered contracts solicited and awarded on or after Jan. 1, 2017. Federal contracts covered by final rule include:

  • Contracts for construction covered by the Davis-Bacon Act.
  • Service contracts covered by the Service Contract Act (SCA).
  • Concessions contracts even those exempt from the SCA.
  • Contracts involving federal property or lands in which services are provided to federal employees, their dependents, or the general public.


Starting January 1, 2017, the final rule is designed to:

  • Require employers to provide up to 56 hours of paid sick leave annually.
  • Enable employees to carry over accrued sick leave from one year to the next. The maximum benefit at any one time is 56 hours.
  • Provide options employers in how to adapt the paid sick leave requirement.
  • Allow for flexibility related to the integration with employer-paid time off and leave policies in existing collective bargaining agreements.


According to the U.S. Department of Labor, as many as 1 million families will benefit from the new paid sick leave final rule.

For more details, the DOL has issued a “Fact Sheet: Final Rule to Implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors,” and Frequently Asked Questions available at

Efforts to enforce compliance with state and federal regulations are increasing, as evidenced by this new ruling (EO 13706). Fringe Benefit Group has worked with contractors for over 30 years, helping them bid more effectively on public projects while complying with government regulations through its prevailing wage benefit program, The Contractors Plan. In addition to offering major medical, retirement and specialty benefits plan administration to contractors, our experienced, qualified team provides compliance support at no additional cost to you. Contact us today to learn more.