22.2105 Paid sick leave for Federal contractors and subcontractors
Source: FAR 22.2105 on acquisition.gov
Federal contractors must provide, track, and allow use of paid sick leave for employees on covered contracts, following specific accrual, carryover, and notification rules.
Overview
FAR 22.2105 implements the requirements of Executive Order 13706 and 29 CFR 13.5, mandating that federal contractors and subcontractors provide paid sick leave to employees working on or in connection with covered contracts. The regulation details accrual rates, notification requirements, carryover and reinstatement rules, and the process for requesting and certifying paid sick leave. Contractors must allow employees to accrue at least 1 hour of paid sick leave for every 30 hours worked, or alternatively, provide at least 56 hours at the start of each accrual year. Employees must be informed in writing of their accrued leave at least monthly. Unused leave must carry over year-to-year, up to a minimum cap of 56 hours, and must be reinstated if an employee is rehired within 12 months, unless a payout was made. Contractors must permit use of leave for qualifying reasons upon oral or written request, and may require certification only for absences of 3 or more consecutive full workdays.
Key Rules
- Accrual and Notification
- Employees accrue at least 1 hour of paid sick leave per 30 hours worked, or contractors may frontload 56 hours annually. Employees must be notified of their balance at least monthly.
- Carryover and Reinstatement
- Unused leave carries over each year and must be reinstated if rehired within 12 months, unless a qualifying payout was made.
- Use and Requests
- Employees may use accrued leave for qualifying reasons with an oral or written request; certification may be required for absences of 3+ consecutive days.
Responsibilities
- Contracting Officers: Ensure inclusion of the required clause and monitor contractor compliance.
- Contractors: Track accrual, notify employees, allow use and carryover, manage reinstatement, and handle requests and certifications per regulation.
- Agencies: Oversee contractor implementation and address noncompliance.
Practical Implications
This section ensures employees on federal contracts have access to paid sick leave, impacting contractor payroll systems, recordkeeping, and HR policies. Noncompliance can result in contract penalties. Common pitfalls include failing to track accruals, improper notification, or mishandling leave requests.
In accordance with 29 CFR 13.5, and by operation of the clause at 52.222-62, Paid Sick Leave Under Executive Order 13706, the following contractor requirements apply:
(a) Accrual.
(1) Contractors are required to permit an employee to accrue not less than 1 hour of paid sick leave for every 30 hours worked on or in connection with a contract covered by the E.O. (see 29 CFR 13.5(a)(1)).
(2) Contractors are required to inform each employee, in writing, of the amount of paid sick leave the employee has accrued but not used no less than once each pay period or each month, whichever interval is shorter, as well as upon a separation from employment and upon reinstatement of paid sick leave, pursuant to 29 CFR 13.5(b)(4) (see 29 CFR 13.5(a)(2)).
(3) Contractors may choose to provide employees with at least 56 hours of paid sick leave at the beginning of each accrual year rather than allowing the employee to accrue such leave based on hours worked over time (see 29 CFR 13.5(a)(3)).
(b) Maximum accrual, carryover, reinstatement, and payment for unused leave.
(1) Contractors may limit the amount of paid sick leave employees are permitted to accrue to not less than 56 hours in each accrual year (see 29 CFR 13.5(b)(1)).
(2) Paid sick leave shall carry over from one accrual year to the next. Paid sick leave carried over from the previous accrual year shall not count toward any limit the contractor sets on annual accrual (see 29 CFR 13.5(b)(2)).
(3) Contractors may limit the amount of paid sick leave an employee is permitted to have available for use at any point to not less than 56 hours (see 29 CFR 13.5(b)(3)).
(4) Contractors are required to reinstate paid sick leave for employees only when rehired by the same contractor within 12 months after a job separation (see 29 CFR 13.5(b)(4)).
(5) Nothing in E.O. 13706 or 29 CFR Part 13 requires contractors to make a financial payment to an employee for accrued paid sick leave that has not been used upon a separation from employment. If a contractor nevertheless makes such a payment in an amount equal to or greater than the value of the pay and benefits the employee would have received pursuant to 29 CFR 13.5(c)(3) had the employee used the paid sick leave, the contractor is relieved of the obligation to reinstate an employee's accrued paid sick leave upon rehiring the employee within 12 months of the separation pursuant to 29 CFR 13.5(b)(4) (see 29 CFR 13.5(b)(5)).
(c) Use. Contractors are required to permit an employee to use paid sick leave in accordance with 29 CFR 13.5(c).
(d) Request for paid sick leave. Contractors are required to permit an employee to use any or all of the employee's available paid sick leave upon the oral or written request of an employee that includes information sufficient to inform the contractor that the employee is seeking to be absent from work for a purpose described in 29 CFR 13.5(c) and, to the extent reasonably feasible, the anticipated duration of the leave (see 29 CFR 13.5(d)).
(e) Certification or documentation for leave of 3 or more consecutive full workdays. Contractors may require certification issued by a health care provider to verify the need for paid sick leave used for a purpose described in 29 CFR 13.5(c)(1)(i), (ii), or (iii), or documentation from an appropriate individual or organization to verify the need for paid sick leave used for a purpose described in 29 CFR 13.5(c)(1)(iv), only if the employee is absent for 3 or more consecutive full workdays (see 29 CFR 13.5(e)).