Companies with federal contracts soon to face sick-leave requirement

The U.S. Department of Labor on Thursday said companies that have federal contracts awarded on or after Jan. 1 of next year will be required to provide 56 hours of paid sick leave annually to employees who work on or in connection with certain contracts.

The rule applies to four major types of contracts: construction, services, concessions and any contracts in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public. The rule does not cover contracts in which federal agencies provide financial and other assistance to construction projects through grants, loans, guarantees or insurance.

The rule will allow workers to use paid leave if they are sick, need to take care of a sick family member or must see a doctor or take a family member to a medical appointment. Workers may also use paid sick leave for reasons related to domestic violence, sexual assault or stalking.

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The rule is expected to affect an estimated 1.15 million employees of federal contractors, including an estimated 594,000 employees who currently receive no paid sick leave, according to a statement issued by the Department of Labor.

“Paid sick leave helps workers recover from illness, or be there for their families, whether it’s to take an elderly parent to the doctor or to stay home with a young child with a fever,” Thomas Perez, the U.S. secretary of labor, said in a prepared statement. “It allows working families to focus on what really matters most without having to worry about the next paycheck.”

The final rule implements an executive order signed by President Obama on Sept. 7, 2015.

For more details on the rule, click here.