President Obama announced a new executive order requiring federal contractors to offer employees working on contracts subject to the Davis-Bacon Act and the Service Contract Act up to seven days of paid sick leave. The U.S. Department of Labor (DOL) has until Sept. 30, 2016, to issue final regulations. The new provisions would be included in any new contract from Jan. 1, 2017, and beyond. 

According to Associated Builders and Contractors, the president’s latest proposal circumvents congressional authority and contradicts the DOL’s established policy of crediting sick leave as a fringe benefit for employees performing work on contracts subject to the Davis-Bacon Act, resulting in additional compliance burdens for construction firms that contract with the federal government.