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Federal Paid Sick Leave for Government Contractors - Live Webinar

Federal Paid Sick Leave for Government Contractors – EO 13706


This serves as a reminder of your paid sick leave obligations for certain employees under this federal order.  There has been some confusion about whether this order has been repealed and whether it applies to unionized contractors as well as non-union. It has not been repealed and it does apply to both types of employers. Pursuant to Executive Order 13706 (“EO 13706”), employees who work on the following covered federal contracts are entitled to up to 7 days (or 56 hours) of paid sick leave per year

  1. Procurement contracts for construction covered by the Davis-Bacon Act (DBA) (note: only direct procurement contracts with the federal government for construction services – not contracts merely receiving financial or other assistance to projects);
  2. Service contracts covered by the Service Contract Act (SCA);
  3. Concession contracts, including any concessions contract excluded from the SCA by the DOL’s regulations at 29 C.F.R. § 4.133(b); and
  4. Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.

The rate of accrual is one hour of paid sick leave for every 30 hours worked on, or in connection with, a covered federal contract.  Unused time carries over to the next year, but employers may limit the amount of paid sick leave to no more than 56 hours at any one time. This paid sick leave is separate from and in addition to any fringe benefits you are required to provide pursuant to a covered federal contract. 

Employers are required to reinstate employees’ accrued, unused paid sick leave if the employees are rehired within 12 months after a job separation, unless the employer provides payment to employees for accrued, unused paid sick leave upon separation.  To be clear, employers are not required to pay employees for accrued, unused paid sick leave at the time of job separation; however, if they do provide a cash out, they will not be required to reinstate unused leave. 

Find General Guidance, Facts Sheets and required posters at

Click Here To Access The Fact Sheet


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