Establishing Paid Sick Leave for Federal Contractors

Executive Order 13706 of September 7, 2015

Establishing Paid Sick Leave for Federal
Contractors

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including 40 U.S.C. 121, and in order to
promote economy and efficiency in procurement by
contracting with sources that allow their employees to
earn paid sick leave, it is hereby ordered as follows:

Section 1. Policy. This order seeks to increase
efficiency and cost savings in the work performed by
parties that contract with the Federal Government by
ensuring that employees on those contracts can earn up
to 7 days or more of paid sick leave annually,
including paid leave allowing for family care.
Providing access to paid sick leave will improve the
health and performance of employees of Federal
contractors and bring benefits packages at Federal
contractors in line with model employers, ensuring that
they remain competitive employers in the search for
dedicated and talented employees. These savings and
quality improvements will lead to improved economy and
efficiency in Government procurement.

Sec. 2. Establishing paid sick leave for Federal
contractors and subcontractors. (a) Executive
departments and agencies (agencies) shall, to the
extent permitted by law, ensure that new contracts,
contract-like instruments, and solicitations
(collectively referred to as ``contracts''), as
described in section 6 of this order, include a clause,
which the contractor and any subcontractors shall
incorporate into lower-tier subcontracts, specifying,
as a condition of payment, that all employees, in the
performance of the contract or any subcontract
thereunder, shall earn not less than 1 hour of paid
sick leave for every 30 hours worked.

(b) A contractor may not set a limit on the total
accrual of paid sick leave per year, or at any point in
time, at less than 56 hours.
(c) Paid sick leave earned under this order may be
used by an employee for an absence resulting from:

(i) physical or mental illness, injury, or medical condition;

(ii) obtaining diagnosis, care, or preventive care from a health care
provider;

(iii) caring for a child, a parent, a spouse, a domestic partner, or any
other individual related by blood or affinity whose close association with
the employee is the equivalent of a family relationship who has any of the
conditions or needs for diagnosis, care, or preventive care described in
paragraphs (i) or (ii) of this subsection or is otherwise in need of care;
or

(iv) domestic violence, sexual assault, or stalking, if the time absent
from work is for the purposes otherwise described in paragraphs (i) and
(ii) of this subsection, to obtain additional counseling, to seek
relocation, to seek assistance from a victim services organization, to take
related legal action, including preparation for or participation in any
related civil or criminal legal proceeding, or to assist an individual
related to the employee as described in paragraph (iii) of this subsection
in engaging in any of these activities.

(d) Paid sick leave accrued under this order shall
carry over from 1 year to the next and shall be
reinstated for employees rehired by a covered
contractor within 12 months after a job separation.

(e) The use of paid sick leave cannot be made
contingent on the requesting employee finding a
replacement to cover any work time to be missed.
(f) The paid sick leave required by this order is
in addition to a contractor's obligations under 41
U.S.C. chapter 67 (Service Contract Act) and 40 U.S.C.
chapter 31, subchapter IV (Davis-Bacon Act), and
contractors may not receive credit toward their
prevailing wage or fringe benefit obligations under
those Acts for any paid sick leave provided in
satisfaction of the requirements of this order.
(g) A contractor's existing paid leave policy
provided in addition to the fulfillment of Service
Contract Act or Davis-Bacon Act obligations, if
applicable, and made available to all covered employees
will satisfy the requirements of this order if the
amount of paid leave is sufficient to meet the
requirements of this section and if it may be used for
the same purposes and under the same conditions
described herein.
(h) Paid sick leave shall be provided upon the oral
or written request of an employee that includes the
expected duration of the leave, and is made at least 7
calendar days in advance where the need for the leave
is foreseeable, and in other cases as soon as is
practicable.
(i) Certification.

(i) A contractor may only require certification issued by a health care
provider for paid sick leave used for the purposes listed in subsections
(c)(i), (c)(ii), or (c)(iii) of this section for employee absences of 3 or
more consecutive workdays, to be provided no later than 30 days from the
first day of the leave.

(ii) If 3 or more consecutive days of paid sick leave is used for the
purposes listed in subsection (c)(iv) of this section, documentation may be
required to be provided from an appropriate individual or organization with
the minimum necessary information establishing a need for the employee to
be absent from work. The contractor shall not disclose any verification
information and shall maintain confidentiality about the domestic violence,
sexual assault, or stalking, unless the employee consents or when
disclosure is required by law.

(j) Nothing in this order shall require a covered
contractor to make a financial payment to an employee
upon a separation from employment for accrued sick
leave that has not been used, but unused leave is
subject to reinstatement as prescribed in subsection
(d) of this section.
(k) A covered contractor may not interfere with or
in any other manner discriminate against an employee
for taking, or attempting to take, paid sick leave as
provided for under this order or in any manner
asserting, or assisting any other employee in
asserting, any right or claim related to this order.
(l) Nothing in this order shall excuse
noncompliance with or supersede any applicable Federal
or State law, any applicable law or municipal
ordinance, or a collective bargaining agreement
requiring greater paid sick leave or leave rights than
those established under this order.

Sec. 3. Regulations and Implementation. (a) The
Secretary of Labor (Secretary) shall issue such
regulations by September 30, 2016, as are deemed
necessary and appropriate to carry out this order, to
the extent permitted by law and consistent with the
requirements of 40 U.S.C. 121, including providing
exclusions from the requirements set forth in this
order where appropriate; defining terms used in this
order; and requiring contractors to make, keep, and
preserve such employee records as the Secretary deems
necessary and appropriate for the enforcement of the
provisions of this order or the regulations thereunder.
To the extent permitted by law, within 60 days of the
Secretary issuing such regulations, the Federal
Acquisition Regulatory Council shall issue regulations
in the Federal Acquisition Regulation to provide for
inclusion in Federal procurement solicitations and
contracts subject to this order the contract clause
described in section 2(a) of this order.

(b) Within 60 days of the Secretary issuing
regulations pursuant to subsection (a) of this section,
agencies shall take steps, to the extent permitted by
law, to exercise any applicable authority to ensure
that contracts as described in section 6(d)(i)(C) and
(D) of this order, entered into after January 1, 2017,
consistent with the effective date of such agency
action, comply with the requirements set forth in
section 2 of this order.
(c) Any regulations issued pursuant to this section
should, to the extent practicable and consistent with
section 7 of this order, incorporate existing
definitions, procedures, remedies, and enforcement
processes under the Fair Labor Standards Act, 29 U.S.C.
201 et seq.; the Service Contract Act; the Davis-Bacon
Act; the Family and Medical Leave Act, 29 U.S.C. 2601
et seq.; the Violence Against Women Act of 1994, 42
U.S.C. 13925 et seq.; and Executive Order 13658 of
February 12, 2014, Establishing a Minimum Wage for
Contractors.

Sec. 4. Enforcement. (a) The Secretary shall have the
authority for investigating potential violations of and
obtaining compliance with this order, including the
prohibitions on interference and discrimination in
section 2(k) of this order.

(b) This order creates no rights under the Contract
Disputes Act, and disputes regarding whether a
contractor has provided employees with paid sick leave
prescribed by this order, to the extent permitted by
law, shall be disposed of only as provided by the
Secretary in regulations issued pursuant to this order.

Sec. 5. Severability. If any provision of this order,
or applying such provision to any person or
circumstance, is held to be invalid, the remainder of
this order and the application of the provisions of
such to any person or circumstance shall not be
affected thereby.

Sec. 6. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the
head thereof; or

(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
(d) This order shall apply only to a new contract
or contract-like instrument, as defined by the
Secretary in the regulations issued pursuant to section
3(a) of this order, if:

(i) (A) it is a procurement contract for services or construction;

(B) it is a contract or contract-like instrument for services covered by
the Service Contract Act;

(C) it is a contract or contract-like instrument for concessions, including
any concessions contract excluded by Department of Labor regulations at 29
CFR 4.133(b); or

(D) it is a contract or contract-like instrument entered into with the
Federal Government in connection with Federal property or lands and related
to offering services for Federal employees, their dependents, or the
general public; and

(ii) the wages of employees under such contract or contract-like instrument
are governed by the Davis-Bacon Act, the Service Contract Act, or the Fair
Labor Standards Act, including employees who qualify for an exemption from
its minimum wage and overtime provisions.

(e) For contracts or contract-like instruments
covered by the Service Contract Act or the Davis-Bacon
Act, this order shall apply only to contracts

or contract-like instruments at the thresholds
specified in those statutes. For procurement contracts
in which employees' wages are governed by the Fair
Labor Standards Act, this order shall apply only to
contracts or contract-like instruments that exceed the
micro-purchase threshold, as defined in 41 U.S.C.
1902(a), unless expressly made subject to this order
pursuant to regulations or actions taken under section
3 of this order.
(f) This order shall not apply to grants; contracts
and agreements with and grants to Indian Tribes under
the Indian Self-Determination and Education Assistance
Act (Public Law 93-638), as amended; or any contracts
or contract-like instruments expressly excluded by the
regulations issued pursuant to section 3(a) of this
order.
(g) Independent agencies are strongly encouraged to
comply with the requirements of this order.

Sec. 7. Effective Date. (a) This order is effective
immediately and shall apply to covered contracts where
the solicitation for such contract has been issued, or
the contract has been awarded outside the solicitation
process, on or after:

(i) January 1, 2017, consistent with the effective date for the action
taken by the Federal Acquisition Regulatory Council pursuant to section
3(a) of this order; or

(ii) January 1, 2017, for contracts where an agency action is taken
pursuant to section 3(b) of this order, consistent with the effective date
for such action.

(b) This order shall not apply to contracts or
contract-like instruments that are awarded, or entered
into pursuant to solicitations issued, on or before the
effective date for the relevant action taken pursuant
to section 3 of this order.

THE WHITE HOUSE,

September 7, 2015.