ExecutiveOrdersEO
EO 13706Executive OrderObama · D Quiet signal

Executive Order 13706

Establishing Paid Sick Leave for Federal Contractors

This executive order requires federal contractors and subcontractors to provide employees with paid sick leave, accruing at 1 hour per 30 hours worked with a minimum annual cap of 56 hours (7 days). The leave covers personal illness, medical care, family care, and domestic violence-related absences, applying to new contracts solicited or awarded on or after January 1, 2017.

Federal Register Open PDF 80 FR 54697

Impact dates

  1. Agencies take steps to ensure contract compliance

  2. FAR Council issues Federal Acquisition Regulation regulations

  3. Effective date for covered contracts (solicitations issued or contracts awarded on or after this date)

  4. Secretary of Labor issues implementing regulations

Key directives

  • Contract clause mandating 1 hour paid sick leave per 30 hours worked
  • Minimum 56-hour annual accrual cap
  • Leave carryover and reinstatement for rehires within 12 months
  • Anti-interference and anti-discrimination protections
  • Labor Secretary regulations by September 30, 2016
  • FAR Council regulations within 60 days of Labor regulations
  • Agency compliance steps within 60 days of Labor regulations
  • Contracts covered if solicited/awarded on or after January 1, 2017

Who is ordered

Timeline

Immediate

  • EO effective immediately upon signing
  • Secretary of Labor tasked with regulatory drafting

Near term (90d)

—

Long term

  • Labor Department regulations due by September 30, 2016
  • FAR Council regulations within 60 days after Labor regulations
  • Agency implementation steps within 60 days after Labor regulations
  • Covered contracts effective January 1, 2017

Risks & tensions

  • Regulatory timeline was tight: Labor had ~13 months, then FAR Council and agencies each had 60 days, pushing close to January 2017 deadline
  • Section 2(l) preserves stricter state/local laws, creating potential compliance complexity for multi-jurisdictional contractors
  • Coverage scope depends on threshold definitions in underlying statutes (Service Contract Act, Davis-Bacon Act, FLSA micro-purchase threshold), creating implementation uncertainty
  • Section 6(g) 'strongly encourages' but does not mandate independent agency compliance, creating coverage gaps
  • Anti-retaliation provisions (2(k)) without private right of action may limit employee enforcement leverage
Executive Order 13706: Establishing Paid Sick Leave for Federal Contractors · Executive Orders