Executive Order 13706 establishes paid sick leave for federal contractors. The Executive Order (EO) requires that parties who contract with the federal government provide their employees with up to seven days of paid sick leave annually, including paid leave allowing for family care, beginning with contracts awarded on or after January 1, 2017.
What contracts are covered by EO 13706?
The requirements of the EO apply only to certain categories of contracts with the Federal Government, and only to contracts that are “new” on or after January 1, 2017. The categories of covered contracts are identical to those covered by the Final Rule implementing EO 13658, Establishing a Minimum Wage for Contractors (Minimum Wage EO), except that the Final Rule implementing EO 13706 applies to certain contracts with the U.S. Postal Service.
Under the EO and Final Rule, the paid sick leave requirements apply to a new contract that is: (1) a procurement contract for construction covered by the Davis-Bacon Act (DBA); (2) a contract for services covered by the Service Contract Act (SCA); (3) a contract for concessions, including any concessions contract excluded from coverage under the SCA by Department of Labor regulations at 29 CFR 4.133(b); or (4) a contract in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public. The regulations do not apply to contracts for the manufacturing or furnishing of materials, supplies, articles, or equipment to the Federal Government that are subject to the Walsh-Healey Public Contracts Act.
The Final Rule only applies to contracts, or portions of contracts, with the Federal Government performed within the United States (defined as the 50 States and the District of Columbia).
source: DOL