Clarifies Outstanding Fringe Benefit Questions Regarding Paid Leave
The U.S. Department of Labor’s Wage and Hour Division (WHD) released additional guidance for employers with certain federal contracts regarding paid sick leave or expanded family and medical leave under the Families First Coronavirus Relief Act (FFCRA). The guidance provides compliance assistance to employers with service contracts with the federal government covered by the Service Contract Act and federal construction contracts covered by the Davis-Bacon Act. Specifically, the guidance addresses whether federal contractors must include fringe benefits when they pay employees paid sick leave or expanded family and medical leave under the FFCRA along with any potential interaction with Executive Order (EO) 13706, which requires paid sick leave.
WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked and job-protected leave under the FMLA at https://www.dol.gov/agencies/whd/pandemic. For AGC-provided resources on FFCRA and other coronavirus-related matters of significance to construction employers, visit AGC’s coronavirus website.
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