Overview
This section establishes the foundational terminology for implementing Executive Order 13706, which mandates paid sick leave for federal contractors. It defines the specific categories of workers entitled to these benefits and sets the parameters for how the 12-month accrual period is calculated.
Key Rules
- Broad Employee Coverage: Coverage extends to any person performing work "on" (direct services) or "in connection with" (supporting activities) a covered contract whose wages are governed by the Service Contract Labor Standards, Wage Rate Requirements (Construction), or the Fair Labor Standards Act (FLSA).
- Inclusion of Exempt Staff: The definitions explicitly include employees who are otherwise exempt from FLSA minimum wage and overtime provisions, such as executive, administrative, or professional employees.
- Work Distinction:
- "On a contract" refers to those performing the specific services called for in the statement of work.
- "In connection with a contract" refers to those performing activities necessary to the performance of the contract, even if not explicitly required by the contract terms.
- Accrual Year Caps: Contractors may limit an employee's paid sick leave accrual to a minimum of 56 hours within a designated 12-month "accrual year."
- Legal Precedence: The definitions specify that the contractual relationship alleged to exist (e.g., independent contractor status) does not exempt an employer from providing leave if the individual meets the definition of an "employee" under the governed statutes.
Practical Implications
- Tracking Support Staff: Contractors must track the hours of not only direct labor but also "in connection with" employees (such as HR, accounting, or maintenance) who support a federal contract to ensure compliance with sick leave accrual.
- Alignment with Labor Laws: Because these definitions link directly to 29 CFR Part 13 and various wage statutes, contractors must ensure their payroll and timekeeping systems are integrated to recognize covered work across different types of federal mandates.