Obama Mandates Contractors to Offer Sick Leave

September 9, 2015

pic-bill-signingPresident Barack Obama on Monday, Sept. 7, 2015 signed an Executive Order (EO) that would mandate federal contractors to provide up to seven paid sick days to all employees. The requirement is estimated to impact around 300,000 employees, including those currently not given any sick leave, and those currently earning lower amounts of sick leave.

More specifically, the EO would mandate contractor employees earn at least one hour of paid sick leave per 30 hours worked with a minimum limit of 56 hours. The leave can be used either as personal sick leave or for the care of a sick family member.

In addition to signing the EO as part of a Labor Day event, Mr. Obama called on Congress to pass legislation to require private companies to provide sick leave, which administration estimates is around 40 percent of the private-sector workforce. Unfortunately, these kind of mandates, such as the Healthy Families Act, which NSBA has opposed, can leave struggling small firms with the difficult choice of reducing hours or laying off employees in order to comply with the significant costs of the rule.

Furthermore, the administration’s use of EO’s to move policy forward are creating a significant barrier to entry for many small, would-be federal contractors.

Please click here to read the complete Executive Order.