Overview
This section outlines the mandatory requirements for federal contractors to provide paid sick leave to employees under Executive Order 13706 and 29 CFR Part 13. It establishes the framework for how leave is earned, tracked, and utilized by personnel working on or in connection with covered federal contracts.
Key Rules
- Accrual Standards: Employees must earn at least 1 hour of paid sick leave for every 30 hours worked on a covered contract. Alternatively, contractors may "front-load" 56 hours of leave at the beginning of each accrual year.
- Notification Requirements: Contractors must inform employees of their accrued leave balance in writing at least once per month (or per pay period), as well as upon separation or reinstatement of employment.
- Carryover and Limits: Unused sick leave must carry over from year to year. While contractors may cap annual accrual and total available leave at 56 hours, carryover hours do not count toward the annual accrual limit.
- Reinstatement: If an employee is rehired by the same contractor within 12 months of separation, their unused sick leave must be reinstated unless the contractor paid out the balance upon the initial separation.
- Usage and Documentation: Contractors must allow leave for requests made orally or in writing. Medical certification or documentation can only be mandated if the employee is absent for three or more consecutive full workdays.
- No Payout Requirement: Contractors are not required to pay out unused sick leave upon an employee’s separation, though doing so exempts them from the 12-month reinstatement rule.
Practical Implications
- Contractors must implement robust tracking systems within their payroll or HR departments to distinguish hours worked "on or in connection with" covered federal contracts versus non-covered commercial work.
- The regulation creates a significant administrative record-keeping burden, particularly the requirement to track and potentially reinstate leave balances for separated employees for up to a full year.