DOL Issues New Guidance on Paid Sick Leave for Federal Contractors
New DOL guidance clarifies paid sick leave obligations for federal contractors.
DOL Clarifies Paid Sick Leave Requirements
The U.S. Department of Labor (DOL) issued new guidance on May 10, 2026, clarifying the paid sick leave obligations for federal contractors under Executive Order 13706. This order, originally signed in 2015, requires certain federal contractors to provide up to seven days of paid sick leave annually to their employees. The new guidance aims to address ambiguities and ensure compliance.
Key Provisions
The guidance specifies that federal contractors must accrue at least one hour of paid sick leave for every 30 hours worked, up to a minimum of 56 hours per year. It applies to contracts entered into or renewed after January 1, 2017. The DOL's Wage and Hour Division emphasized that contractors cannot set a cap on the total accrual of paid sick leave below the 56-hour minimum.
The guidance also clarifies that employees can use paid sick leave for their own medical needs, to care for a family member, or for reasons related to domestic violence, sexual assault, or stalking. Importantly, the guidance reaffirms that contractors cannot require employees to find a replacement worker as a condition for using paid sick leave.
Compliance and Recordkeeping
Federal contractors are urged to review their current sick leave policies to ensure they meet the updated requirements. The DOL mandates that contractors maintain accurate records of hours worked, leave accrued, and leave used for at least three years. Failure to comply could result in penalties or loss of contract eligibility.
Action Items for Employers
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Review Contracts: Verify that all federal contracts comply with the paid sick leave requirements as clarified by the new guidance.
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Update Policies: Amend current sick leave policies to reflect the accrual and usage provisions outlined in the guidance.
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Recordkeeping: Implement or update systems to track accrual and usage of paid sick leave, ensuring records are retained for the required period.
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Train HR Staff: Ensure that human resources personnel are familiar with the new guidance and equipped to handle employee inquiries and compliance issues.
The DOL's latest guidance aims to streamline compliance and protect workers' rights under Executive Order 13706. Federal contractors should act promptly to align their policies and practices with these clarified requirements.