Paid sick leave for Federal contractors and subcontractors
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.