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By Kelline R. Linton,
On Monday, President Obama signed an Executive Order requiring all federal contractors to offer paid sick leave by 2017. Federal contractors must allow employees to earn up to seven days of paid sick leave each year (one hour of paid sick leave for every thirty hours worked). This leave includes paid time off for family care, illness, injuries, medical conditions, domestic violence, and preventative care.
This latest executive order is another in a series of changes affecting employee benefits and pay. Last year, the President signed an executive order to raise the minimum wage for federal contractor employees to $10.10, which went into effect in January. In July, the Department of Labor (“DOL”) proposed overtime changes to the FLSA’s white-collar exemption regulations, which would increase wages for as many as 5 million people starting in 2016. The comment period for this proposal ended last week.
In light of these upcoming changes, we recommend companies review their policies and procedures for compliance to ensure a smooth transition. To read the latest Executive Order for paid sick leave, please visit: https://www.whitehouse.gov/the-press-office/2015/09/08/executive-order-establishing-paid-sick-leave-federal-contractors.