Federal Contractors Again the Focus of Executive Action
On Labor Day, President Obama signed an executive order that would mandate direct-federal prime contractors and subcontractors to issue paid sick leave. The executive order mandates paid sick leave at a rate of no less than 1 hour earned for every 30 hours worked, setting a minimum of 56 hours a year of paid sick leave—about seven days—covering not only employee illness, but also caring 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.”
The U.S. Department of Labor (DOL) must issue regulations to implement the order by Sept. 20, 2016. The Federal Acquisition Regulation (FAR) Council would issue corresponding FAR clause regulations within 60 days after DOL’s regulations. The order’s requirements will take effect for contracts issued in 2017. AGC will take time to assess the impact this executive action will have on construction contractors and represent the concerns of the industry accordingly.
For more information, please contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325).