The U.S. Department of Labor (DOL) has signaled it intends to issue a final rule to fully implement the President’s July 31, 2014 “Fair Pay and Safe Workplaces” Executive Order by August 2016. The Order creates disclosure and compliance requirements for contractors on federal contracts valued at $500,000 or more. Per the proposed rules, contractors must disclose violations of labor, employment, wage payment and safety laws during the contract bidding and renewal process. The last action taken on this regulatory matter was May 2, 2016 when revised implementing rules were sent to the Office of Management and Budget (OMB) for finalization.
DOL also plans to issue a final rule that will implement the “Establishing Paid Sick Leave for Contractors” Executive Order by September 2016. Under the rule being proposed, contractors will be required to provide up to 56 hours, or 7 days, of paid sick leave per year to their employees on federal contracts entered into after January 1, 2017. Subcontractors also will be required to provide paid sick leave to employees performing work on a covered contract. The comment period on this new requirement closed on April 12, 2016, so it is likely that the final steps of the regulatory process will be finalized year’s end.
The status of these two rules as well as others affecting employers may be found on the U.S. Department of Labor’s spring 2016 rule list published here.