Overview
This section establishes the federal mandate that contractors must provide paid sick leave to employees working on covered contracts pursuant to Executive Order 13706 and 29 CFR Part 13. It also defines the relationship between these requirements and other labor laws, collective bargaining agreements, and existing employer policies.
Key Rules
- Mandatory Provision: Contractors are required to allow employees performing work on or in connection with a covered contract to accrue and use paid sick leave.
- Floor, Not a Ceiling: E.O. 13706 does not supersede or excuse noncompliance with other federal, state, or local laws or collective bargaining agreements (CBAs) that provide more generous sick leave benefits.
- PTO Integration: A contractor’s existing voluntary Paid Time Off (PTO) policy can satisfy the requirements of the E.O., provided the policy meets or exceeds the accrual and usage standards defined in 29 CFR Part 13.
- Division of Responsibility: The contractor is solely responsible for ensuring compliance with the leave requirements, while the Department of Labor (DOL) maintains the authority for enforcement.
- Statutory Coordination: The policy explicitly coordinates with other major labor statutes, including the Service Contract Labor Standards (SCLS), Wage Rate Requirements (Construction), and the Family and Medical Leave Act (FMLA).
Practical Implications
- Contractors must conduct a comparative analysis of their existing PTO policies against 29 CFR Part 13 to ensure their current benefits meet the specific accrual and "reinstatement of leave" rules required by the E.O.
- In jurisdictions with local sick leave ordinances, contractors must apply the "most generous" standard, necessitating a localized approach to benefits administration rather than a single nationwide policy.