Human Capital Management Blog

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What Employers Need to Know About Paid Sick Leave for Federal Contractors

Back in 2009, I was quarantined with H1N1, affectionately known as the swine flu. This (painful, awful, wouldn’t-wish-it-on-my-worst-enemy-ok-maybe-that-one-guy) experience taught me about the importance of sick leave. I’d always realized that taking time off helps employees recover, but before the quarantine, I hadn’t really thought about how it also helps prevent illnesses from spreading between colleagues.

The US Department of Labor has recently recognized the importance of sick days by publishing final regulations that require federal contractors to provide paid sick leave. (Thankfully for them, I don’t think they came to the realization the same way that I did.)

Effective January 1, 2017, certain federal contractors and subcontractors must grant all employees working under a covered contract (or subcontract) a minimum of one hour of paid sick leave for every 30 hours worked. These employees must be allowed to accrue and carry over at least 56 hours (seven days) of this leave, per year.

The regulations also include:

  • Descriptions of the permitted reasons for the leave
  • Guidelines for how employees can inform their employer that they need leave
  • Guidelines for how employers can notify employees of the amount of leave they’ve accrued
  • Clarification regarding how a contractor’s current sick leave policy can satisfy these requirements

If you have employees who are affected by these changes, you need to review the rule and ensure that your leave program meets the new requirements. You also need to track your employees’ time worked on applicable government contracts so they accrue sick time correctly.

You can read the full text of the final regulations here.

Dayforce HCM Can Help!

Dayforce HCM’s Workforce Management module provides a broad range of configuration options for tracking and awarding time off to employees. It allows you to define the balances used by your organization and configure entitlements to determine how balances are awarded. To learn about how Dayforce HCM can help meet your compliance needs, request a demo at

For more information about configuring entitlements in Dayforce HCM, existing clients can contact their support representative or refer to the Define Entitlements section of the Dayforce Implementation Guide (DIG), which is available via the Support Downloads site.

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