The DOL has issued a rule regarding President Obama’s Executive Order 13706, wherein federal contractors will need to prove up to 7 days of paid sick leave to all of their employees starting January 1, 2017.
Under the Final Rule, Executive Order 13706 applies to four (4) categories of contractual agreements:
- Procurements contracts for construction under the Davis-Bacon Act (DBA)
- Service contracts covered by the McNamara-O'Hara Service Contract Act (SCA)
- Concessions contracts from the SCA by the Department of Labor's regulations at 29 CFR 4.133
- Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public
Moreover, any subcontract of a covered contract that (like the upper-tier contract) can be categorized as one of these four (4) classes is liable to the paid sick leave requirements. In this way, if you have a subcontract with a federal worker which can be categorized as one of the above classifications, you are covered by Executive Order 13706 also.
The Final Rule contains certain limited exclusions from coverage for the following types of agreements: (1) Grants;
(2) Contracts and agreements with and grants to Indian Tribes under Public Law 93-638, as revised;
(3) Any procurement contracts for construction projects that are not subject to the Davis-Bacon Act (i.e., obtainment contracts for development ventures under $2,000); and
(4) Any agreements for services, except those generally explicitly covered by the Final Rule, that are exempted from scope under the McNamara-O'Hara Service Contract Act or its executing controls. The Final Rule additionally gives that the Executive Order does not apply to contracts for the manufacturing or furnishing of materials, supplies, articles, or equipment to the government, including those subject to the Walsh-Healey Public Contracts Act.
So, if you are covered by Executive Order 13658, which requires the payment of a $10.10 the lowest pay permitted by law to workers of government contractual workers, you are covered by this Executive Order too.