Paid Leave for Federal Contractor Employees



By:  Claudia D. Orr


The Department of Labor just announced a proposed rule to implement Executive Order 13706, signed by President Obama in September 2015 that would require up to 7 days of paid sick leave each year for employees of employers entering into contracts with the federal government after January 1, 2017.

Specifically, the proposed rule would allow a “covered employee” to accrue one hour of paid sick time for every thirty hours of work while working on the federal contract.  The “bank” would accrue up to 56 hours of sick time (7 days) per year which could carry over from year to year but would not have to be paid out at termination. Sick time could be used in as little as an hour increment.

Sick time could be used for the employee’s own illness or health care needs (including preventive care), to care for a family member who is ill or needs health care or for purposes resulting from domestic abuse, sexual assault or stalking or to assist a family member or loved one who is a victim.

Comments on the proposed rule will be accepted until March 28, 2016. For further information visit the DOL webpage at

This article was written by Claudia D. Orr, who is Chair of the Legal Affairs Committee of Detroit SHRM, and an experienced labor/employment attorney at the Detroit office of Plunkett Cooney (a full service law firm and resource partner of Detroit SHRM).  She can be reached at or at (313) 983-4863. 

Detroit SHRM encourages members to share these articles with others, inside and outside their organization, as long as its name and logo, and the author’s information, is included in the re-post of the article. March 2016.