Paid Leave
On and after January 1, 2017, new solicitations and resulting covered contracts (mainly those under the Service Contract Act and Davis-Bacon Act) can include a clause obligating contractors to provide 56 hours of paid sick leave to employees working on covered contracts. Leave will be accrued at the rate of 1 hour for every 30 hours worked. The new paid leave requirements do not apply to pre-existing contracts that are in effect in 2017. The required leave must be in addition to vacation time provided under a Wage Determination.
As the Paid Leave rule is the product of an Executive Order (E.O.13706), it can be rescinded by President Trump, should he decide to do so. However, there is ambiguity about his Administration’s plans for paid leave, in general, and whether this form of Paid Leave is part of those plans.
Pay Transparency
Although the most onerous elements of the “blacklisting” regulations were enjoined, the new paycheck transparency requirements under the “Fair Pay and Safe Workplaces” Executive Order (E.O. 13673) were NOT enjoined and will be effective beginning January 1, 2017. The requirements will apply to all new federal procurement contracts and subcontracts of $500,000 or more. Covered contractors must inform employees of hours worked, overtime hours (for non-exempt employees) by workweek and totaled for pay period, pay, deductions, and must identify exempt employees and independent contractors. Contractors already complying with state laws with comparable disclosure requirements (such as California and D.C.), are considered in compliance with the new federal pay transparency standard.
“Fair Pay and Safe Workplaces” Executive Order is also subject to rescission and is likely to be acted on. However, the injunction may delay executive action.
If you have any questions, please contact Burt Fishman (bjfishman@fortneyscott.com) or your FortneyScott lawyer. We will be keeping you apprised of any new developments.
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