52.222-62
Paid Sick Leave Under Executive Order 13706
Contractors on covered federal contracts must provide, track, and document paid sick leave for eligible employees, ensuring compliance for themselves and all subcontractors or risk severe penalties.
Overview
FAR 52.222-62 implements the requirements of Executive Order 13706, mandating that contractors and subcontractors performing work on or in connection with covered federal contracts provide paid sick leave to employees. The clause defines key terms, outlines accrual and usage requirements, and sets forth compliance, recordkeeping, and notification obligations. It applies to contracts subject to the Service Contract Labor Standards or Wage Rate Requirements (Construction) statutes performed in whole or in part in the United States. Contractors must ensure both their own and their subcontractors’ compliance, with potential penalties for violations including withholding of payments, contract termination, and debarment.
Key Rules
- Paid Sick Leave Accrual and Use
- Employees must accrue at least 1 hour of paid sick leave for every 30 hours worked, with accrual, use, and carryover governed by 29 CFR Part 13.
- Scope and Applicability
- Applies to contracts performed in the U.S. subject to Service Contract Labor Standards or Wage Rate Requirements (Construction); must be flowed down to all covered subcontracts regardless of dollar value.
- Recordkeeping
- Contractors must maintain detailed records for each employee for at least three years, including hours worked, leave accrued/used, and related documentation.
- Non-Interference and Non-Discrimination
- Contractors may not interfere with or discriminate against employees for using paid sick leave or exercising related rights.
- Notification
- Contractors must post a Department of Labor notice informing employees of their rights under this clause.
- Enforcement and Remedies
- Violations may result in withholding of payments, contract suspension/termination, and debarment.
Responsibilities
- Contracting Officers: Ensure inclusion of the clause in applicable contracts and monitor compliance.
- Contractors: Accrue and provide paid sick leave, maintain records, notify employees, ensure subcontractor compliance, and avoid interference/discrimination.
- Agencies: Enforce compliance, investigate complaints, and impose remedies for violations.
Practical Implications
- This clause ensures federal contract workers have access to paid sick leave, improving workforce health and stability.
- Contractors must implement robust tracking and recordkeeping systems and train HR/payroll staff on compliance.
- Failure to comply can result in significant penalties, including payment withholding and debarment.