The Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) have issued an interim rule revising the Federal Acquisition Regulation (FAR) to implement Executive Order 13706 (EO), Establishing Paid Sick Leave for Federal Contractors. The intent is to increase efficiency and cost savings for Federal contractors by ensuring their employees can earn up to 7 days or more of paid sick leave annually, including paid sick leave for family care.
The Wage and Hour Division of DOL published a final rule in the Federal Register, on September 30, 2016, also entitled “Establishing Paid Sick Leave for Federal Contractors,” which added a new part 13 to title 29 Code of Federal Regulation.
This interim rule applies to solicitations issued on or after January 1, 2017, and any resultant contracts. FAR 52.222-62, Paid Sick Leave Under the E.O., will apply to existing contracts as follows:
(1) Contracting officers must include the clause in bilateral modifications extending the contract if the modifications are individually or cumulatively longer than six months; and
(2) in accordance with FAR 1.108(d)(3), contracting officers are strongly encouraged to include the clause in existing indefinite-delivery indefinite-quantity (IDIQ) contracts, if the remaining ordering period extends at least six months and the amount of remaining work or number of orders expected is substantial.
This interim rule was effective January 1, 2017.