Establishing Paid Sick Leave for Federal Contractors, 54697-54700 [2015-22998]
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Federal Register / Vol. 80, No. 175 / Thursday, September 10, 2015 / Presidential Documents
54697
Presidential Documents
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;
mstockstill on DSK4VPTVN1PROD with E0
(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.
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(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.
mstockstill on DSK4VPTVN1PROD with E0
(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.
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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
mstockstill on DSK4VPTVN1PROD with E0
(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
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Federal Register / Vol. 80, No. 175 / Thursday, September 10, 2015 / Presidential Documents
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.
THE WHITE HOUSE,
September 7, 2015.
[FR Doc. 2015–22998
Filed 9–9–15; 11:15 am]
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Agencies
[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)]
[Presidential Documents]
[Pages 54697-54700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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