Executive Order 13706 – Paid Sick Leave for Workers on Federal Contracts

The Department of Labor released the latest Wage Determinations covering the Service Contract Act (SCA, now known as the Service Contract Labor Standards) July 25, 2017.  The wage determinations incorporate Executive Order 13706 – Paid Sick Leave for Workers on Federal Contracts, which requires all paid sick leave for all employees working on Federal contracts awarded after January 2, 2017.

The wage determinations did not include this provision until July 25th, so previous contracts incorporating the SCA will not be affected until the wage determination identified in the award or modifications are revised.

Here is what you need to know to be compliant with the new sick leave requirement:

  • All new contracts will be affected.
  • All non-exempt (SCA, DBA, or Fair Labor Standards Act) employees will accrue a minimum of 56 hours of sick leave annually
    • Contractor may make all 56 hours available immediately, or
    • Accrued at basis of 1 hour of sick leave for every 30 hours worked, at least to 56 hours annually.
  • Sick Leave requirement does not replace any portion of the Holiday & Vacation requirements
  • SCA employees must be notified in writing (pay stub) of their available balance every payday
  • Accrued sick pay does not need to be paid out on termination, unless employee is rehired within 12 months.
  • You may set a maximum of 56 hours to be carried over from year to year
  • Health & Welfare benefits are reduced from $4.41/hour to $4.13/hour

Covered employees can use sick leave for any of the following reasons and must provide “certification” from a health care provider for the absence. DOL defines certificate as “any type of written document created or signed by a health care provider (or by a representative of the health care provider) that contains information verifying the existence of the physical or mental illness, injury, medical condition, or need for diagnosis, care, or preventive care or other need for care:”

  • physical or mental illness, injury, or medical condition
  • obtaining diagnosis, care, or preventive care from a health care provider
  • caring for a child, parent, spouse, domestic partner, or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship who has any of the conditions or needs for diagnosis, care, or preventive care
  • as a result of domestic violence, sexual assault, or stalking,

If you have not modified your current GSA schedule to include the latest Executive Order, it is important that you begin that process. Coley GCS offers modification and consultation services, as well as training on the Service Contract Labor Standards.

For More information on the  New Sick Leave Requirement visit:

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Dan Coley

Dan Coley

Vice President for Coley Government Contracting Services, Dan leads the day-to-day Consulting Practice. He has more than a decade of experience with the acquisition, management, and marketing of Federal, State, and Local government contracts. Daniel specializes in all aspects of GSA Schedules management and marketing and has helped hundreds of Coley clients remain compliant with the terms of their GSA contract while helping them expand their business.

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