President Obama Orders Paid Sick Leave for Federal Contractors

On Labor Day 2015 (Monday, September 7), President Obama signed the Executive Order “Establishing Paid Sick Leave for Federal Contractors,” requiring Federal contractors to offer their employees up to seven days of paid sick leave per year. This order will affect only businesses that work on Federally funded projects. The White House anticipates this order will affect 300,000 workers, about 1 percent of the contractor community.

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.