80 FR 54697 - Establishing Paid Sick Leave for Federal Contractors

Executive Office of the President

Federal Register Volume 80, Issue 175 (September 10, 2015)

[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)]
[Presidential Documents]
[Pages 54697-54700]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-22998]




                        Presidential Documents 



Federal Register / Vol. 80 , No. 175 / Thursday, September 10, 2015 / 
Presidential Documents

[[Page 54697]]


                Executive Order 13706 of September 7, 2015

                
Establishing Paid Sick Leave for Federal 
                Contractors

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including 40 U.S.C. 121, and in order to 
                promote economy and efficiency in procurement by 
                contracting with sources that allow their employees to 
                earn paid sick leave, it is hereby ordered as follows:

                Section 1. Policy. This order seeks to increase 
                efficiency and cost savings in the work performed by 
                parties that contract with the Federal Government by 
                ensuring that employees on those contracts can earn up 
                to 7 days or more of paid sick leave annually, 
                including paid leave allowing for family care. 
                Providing access to paid sick leave will improve the 
                health and performance of employees of Federal 
                contractors and bring benefits packages at Federal 
                contractors in line with model employers, ensuring that 
                they remain competitive employers in the search for 
                dedicated and talented employees. These savings and 
                quality improvements will lead to improved economy and 
                efficiency in Government procurement.

                Sec. 2. Establishing paid sick leave for Federal 
                contractors and subcontractors. (a) Executive 
                departments and agencies (agencies) shall, to the 
                extent permitted by law, ensure that new contracts, 
                contract-like instruments, and solicitations 
                (collectively referred to as ``contracts''), as 
                described in section 6 of this order, include a clause, 
                which the contractor and any subcontractors shall 
                incorporate into lower-tier subcontracts, specifying, 
                as a condition of payment, that all employees, in the 
                performance of the contract or any subcontract 
                thereunder, shall earn not less than 1 hour of paid 
                sick leave for every 30 hours worked.

                    (b) A contractor may not set a limit on the total 
                accrual of paid sick leave per year, or at any point in 
                time, at less than 56 hours.
                    (c) Paid sick leave earned under this order may be 
                used by an employee for an absence resulting from:

(i) physical or mental illness, injury, or medical condition;

(ii) obtaining diagnosis, care, or preventive care from a health care 
provider;

(iii) caring for a child, a parent, a spouse, a domestic partner, or any 
other individual related by blood or affinity whose close association with 
the employee is the equivalent of a family relationship who has any of the 
conditions or needs for diagnosis, care, or preventive care described in 
paragraphs (i) or (ii) of this subsection or is otherwise in need of care; 
or

(iv) domestic violence, sexual assault, or stalking, if the time absent 
from work is for the purposes otherwise described in paragraphs (i) and 
(ii) of this subsection, to obtain additional counseling, to seek 
relocation, to seek assistance from a victim services organization, to take 
related legal action, including preparation for or participation in any 
related civil or criminal legal proceeding, or to assist an individual 
related to the employee as described in paragraph (iii) of this subsection 
in engaging in any of these activities.

                    (d) Paid sick leave accrued under this order shall 
                carry over from 1 year to the next and shall be 
                reinstated for employees rehired by a covered 
                contractor within 12 months after a job separation.

[[Page 54698]]

                    (e) The use of paid sick leave cannot be made 
                contingent on the requesting employee finding a 
                replacement to cover any work time to be missed.
                    (f) The paid sick leave required by this order is 
                in addition to a contractor's obligations under 41 
                U.S.C. chapter 67 (Service Contract Act) and 40 U.S.C. 
                chapter 31, subchapter IV (Davis-Bacon Act), and 
                contractors may not receive credit toward their 
                prevailing wage or fringe benefit obligations under 
                those Acts for any paid sick leave provided in 
                satisfaction of the requirements of this order.
                    (g) A contractor's existing paid leave policy 
                provided in addition to the fulfillment of Service 
                Contract Act or Davis-Bacon Act obligations, if 
                applicable, and made available to all covered employees 
                will satisfy the requirements of this order if the 
                amount of paid leave is sufficient to meet the 
                requirements of this section and if it may be used for 
                the same purposes and under the same conditions 
                described herein.
                    (h) Paid sick leave shall be provided upon the oral 
                or written request of an employee that includes the 
                expected duration of the leave, and is made at least 7 
                calendar days in advance where the need for the leave 
                is foreseeable, and in other cases as soon as is 
                practicable.
                    (i) Certification.

(i) A contractor may only require certification issued by a health care 
provider for paid sick leave used for the purposes listed in subsections 
(c)(i), (c)(ii), or (c)(iii) of this section for employee absences of 3 or 
more consecutive workdays, to be provided no later than 30 days from the 
first day of the leave.

(ii) If 3 or more consecutive days of paid sick leave is used for the 
purposes listed in subsection (c)(iv) of this section, documentation may be 
required to be provided from an appropriate individual or organization with 
the minimum necessary information establishing a need for the employee to 
be absent from work. The contractor shall not disclose any verification 
information and shall maintain confidentiality about the domestic violence, 
sexual assault, or stalking, unless the employee consents or when 
disclosure is required by law.

                    (j) Nothing in this order shall require a covered 
                contractor to make a financial payment to an employee 
                upon a separation from employment for accrued sick 
                leave that has not been used, but unused leave is 
                subject to reinstatement as prescribed in subsection 
                (d) of this section.
                    (k) A covered contractor may not interfere with or 
                in any other manner discriminate against an employee 
                for taking, or attempting to take, paid sick leave as 
                provided for under this order or in any manner 
                asserting, or assisting any other employee in 
                asserting, any right or claim related to this order.
                    (l) Nothing in this order shall excuse 
                noncompliance with or supersede any applicable Federal 
                or State law, any applicable law or municipal 
                ordinance, or a collective bargaining agreement 
                requiring greater paid sick leave or leave rights than 
                those established under this order.

                Sec. 3. Regulations and Implementation. (a) The 
                Secretary of Labor (Secretary) shall issue such 
                regulations by September 30, 2016, as are deemed 
                necessary and appropriate to carry out this order, to 
                the extent permitted by law and consistent with the 
                requirements of 40 U.S.C. 121, including providing 
                exclusions from the requirements set forth in this 
                order where appropriate; defining terms used in this 
                order; and requiring contractors to make, keep, and 
                preserve such employee records as the Secretary deems 
                necessary and appropriate for the enforcement of the 
                provisions of this order or the regulations thereunder. 
                To the extent permitted by law, within 60 days of the 
                Secretary issuing such regulations, the Federal 
                Acquisition Regulatory Council shall issue regulations 
                in the Federal Acquisition Regulation to provide for 
                inclusion in Federal procurement solicitations and 
                contracts subject to this order the contract clause 
                described in section 2(a) of this order.

[[Page 54699]]

                    (b) Within 60 days of the Secretary issuing 
                regulations pursuant to subsection (a) of this section, 
                agencies shall take steps, to the extent permitted by 
                law, to exercise any applicable authority to ensure 
                that contracts as described in section 6(d)(i)(C) and 
                (D) of this order, entered into after January 1, 2017, 
                consistent with the effective date of such agency 
                action, comply with the requirements set forth in 
                section 2 of this order.
                    (c) Any regulations issued pursuant to this section 
                should, to the extent practicable and consistent with 
                section 7 of this order, incorporate existing 
                definitions, procedures, remedies, and enforcement 
                processes under the Fair Labor Standards Act, 29 U.S.C. 
                201 et seq.; the Service Contract Act; the Davis-Bacon 
                Act; the Family and Medical Leave Act, 29 U.S.C. 2601 
                et seq.; the Violence Against Women Act of 1994, 42 
                U.S.C. 13925 et seq.; and Executive Order 13658 of 
                February 12, 2014, Establishing a Minimum Wage for 
                Contractors.

                Sec. 4. Enforcement. (a) The Secretary shall have the 
                authority for investigating potential violations of and 
                obtaining compliance with this order, including the 
                prohibitions on interference and discrimination in 
                section 2(k) of this order.

                    (b) This order creates no rights under the Contract 
                Disputes Act, and disputes regarding whether a 
                contractor has provided employees with paid sick leave 
                prescribed by this order, to the extent permitted by 
                law, shall be disposed of only as provided by the 
                Secretary in regulations issued pursuant to this order.

                Sec. 5. Severability. If any provision of this order, 
                or applying such provision to any person or 
                circumstance, is held to be invalid, the remainder of 
                this order and the application of the provisions of 
                such to any person or circumstance shall not be 
                affected thereby.

                Sec. 6. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the 
head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.
                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                    (d) This order shall apply only to a new contract 
                or contract-like instrument, as defined by the 
                Secretary in the regulations issued pursuant to section 
                3(a) of this order, if:

(i) (A) it is a procurement contract for services or construction;

(B) it is a contract or contract-like instrument for services covered by 
the Service Contract Act;

(C) it is a contract or contract-like instrument for concessions, including 
any concessions contract excluded by Department of Labor regulations at 29 
CFR 4.133(b); or

(D) it is a contract or contract-like instrument entered into with the 
Federal Government in connection with Federal property or lands and related 
to offering services for Federal employees, their dependents, or the 
general public; and

(ii) the wages of employees under such contract or contract-like instrument 
are governed by the Davis-Bacon Act, the Service Contract Act, or the Fair 
Labor Standards Act, including employees who qualify for an exemption from 
its minimum wage and overtime provisions.

                    (e) For contracts or contract-like instruments 
                covered by the Service Contract Act or the Davis-Bacon 
                Act, this order shall apply only to contracts

[[Page 54700]]

                or contract-like instruments at the thresholds 
                specified in those statutes. For procurement contracts 
                in which employees' wages are governed by the Fair 
                Labor Standards Act, this order shall apply only to 
                contracts or contract-like instruments that exceed the 
                micro-purchase threshold, as defined in 41 U.S.C. 
                1902(a), unless expressly made subject to this order 
                pursuant to regulations or actions taken under section 
                3 of this order.
                    (f) This order shall not apply to grants; contracts 
                and agreements with and grants to Indian Tribes under 
                the Indian Self-Determination and Education Assistance 
                Act (Public Law 93-638), as amended; or any contracts 
                or contract-like instruments expressly excluded by the 
                regulations issued pursuant to section 3(a) of this 
                order.
                    (g) Independent agencies are strongly encouraged to 
                comply with the requirements of this order.

                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.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    September 7, 2015.

[FR Doc. 2015-22998
Filed 9-9-15; 11:15 am]
Billing code 3295-F5