Federal Contractors May No Longer Deny Paid Sick Leave

Employees who work for companies that are federal contractors may be entitled to receive paid sick leave from their employers. This new benefit comes through an executive order signed by President Obama. It applies to work connected with federal government contracts solicited after January 1, 2017, as well as to replacements of expired federal contracts. The right to paid sick leave for qualified employees of federal contractors comes in addition to the current right to a federal minimum wage, which was similarly granted under an executive order issued by President Obama. It follows closely on the heels of the new federal overtime rules for non-exempt workers that became effective in December 2016.

While most employers provide their employees with wages and benefits mandated by law, the reality is that some employers don’t abide by the law. If you feel you are being denied paid sick leave when you think you should be receiving this benefit, it is important for you to learn your employee rights. Click here to learn more about Kilgore & Kilgore’s employment law practice Wage and Hour Claims. If you need the advice of someone with the ability to enforce your employee rights, contact us for a free review of the facts of your case. Click here to get started with the discussion Contact Us. One of our employment law attorneys may be able to help.

Paid Sick Leave Coverage

The U.S. Department of Labor (DOL) has issued rules and regulations to implement the federal contractor paid sick leave requirements contained in President Obama’s executive order. Coverage under the final paid sick leave rule is nearly identical to coverage under the minimum wage rule. However, the paid sick leave rule also covers employees who qualify for an exemption from the minimum wage and overtime provisions of the Fair Labor Standard Act. As with most federal regulations of this type, it requires an experienced employment law attorney to understand and apply these provisions to a particular situation.

Categories of Contractual Agreements for Paid Sick Leave

The DOL estimates that the final paid sick leave rule will provide paid sick leave to about 1.15 million employees of companies with federal contracts. Both the federal contractor paid sick leave rule and minimum wage rule apply to four major categories of contractual agreements for primary and subcontracts:

  • Procurement contracts,
  • Service contracts,
  • Concessions contracts, and
  • Contracts issued in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.

Paid Sick Leave Accrual

The federal paid sick leave requirement mandates that employees working on matters connected to designated federal contracts receive one hour of paid sick leave for every 30 hours they work, with a maximum of 56 hours of leave a year. Employees will be able to use the days to receive medical attention, care for a relative, or deal with complications arising from domestic violence or sexual assault. The final rule of the DOL allows federal contractors to provide employees with at least 56 hours of paid sick leave at the beginning of each year, rather than allowing employees to accrue leave based on hours worked. The final rule of the DOL also provides that federal contractors must permit employees to carry over accrued, unused paid sick leave from one year to the next. However, federal contractors may limit the amount of paid sick leave employees have accrued to 56 hours at any point in time.

Federal Contractor Responsibilities for Paid Sick Leave

Federal contractors have certain obligations under the DOL final rules regarding paid sick leave and minimum wage. Federal contractors are required to provide their employees with notice regarding the paid sick leave and minimum wage requirements. Employees must be notified in writing of the amount of paid sick leave they have available at the end of each pay period, or each month if shorter. In addition, an employer must notify all employees performing duties connected with a federal contract of the applicable federal minimum wage rate. There are also certain pay frequency and recordkeeping obligations.

DOL Enforcement Procedures

Under the DOL final rules regarding paid sick leave and minimum wage, complaints may be filed with the DOL Wage and Hour Division (WHD) by any person who believes a violation of the executive order or the implementing regulations has occurred. The WHD treats information received related to a complaint confidentially. The rules contain a mechanism for WHD investigations and informal complaint resolution, as appropriate. They also specify remedies and sanctions for violations, including the payment of damages. The WHD may additionally direct that the applicable contracting agency withhold payments due on the federal contract as considered necessary to pay employees the full amount of wages due. While you may file a complaint yourself, to have the best chance of success, it is advised that you work with an experienced employment law attorney.

Federal Contractors May Not Retaliate Against Employees Who Claim Paid Sick Leave

Finally, and importantly, the DOL rules prohibit retaliation against any employee for exercising his or her rights under the executive order or the implementing regulations. It is unlawful for any person to be wrongfully discharged, or in any other manner, use discrimination against any employee for filing a complaint or testifying in any related proceeding.

Our Employment Law Attorneys May Help You Get the Paid Sick Leave You May Deserve

You deserve to receive the paid sick leave due under the law. You have the right to demand those benefits without fear of retaliation by your employer. If you were denied the paid sick leave or overtime wages you are entitled to, contact us. If you have experienced retaliation for exercising your rights, contact us. We offer a free review of the facts of your case with an employment law attorney. Click here to get started Contact Us.

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