Dive Brief:
- On Labor Day, President Barack Obama officially ordered government contractors to offer their workers seven days of paid sick leave a year, according to Reuters.
- Obama signed an executive order on sick leave during a flight on Air Force One to Boston, where he spoke at a union event. The White House said it would affect some 300,000 people, Reuters reported.
- Starting in 2017, workers on government contracts will earn a minimum of one hour of paid sick leave for every 30 hours worked. Contractors can offer more generous amounts at their discretion.
Dive Insight:
The Executive Order was not unexpected, as the Labor Department had already announced that the president would enforce government contractors give their workers a week's worth of paid sick leave, or if not, risk losing their government contracts.
According to Reuters, the executive order follows a series of measures by the White House to expand access to paid leave. In January, Obama issued a presidential memorandum directing the government to advance up to six weeks of paid sick leave for the birth or adoption of a child, or for other sick leave-eligible uses.
Reuters adds that Obama is also pressing Congress to pass legislation giving government employees six additional weeks of paid parental leave. Meantime, Labor Secretary Thomas Perez told reporters he could not say what the cost of implementing the seven-day paid leave rule would be to contractors. Not that it matters, because the cost of implementing this rule is offset by the efficiencies that come with reduced attrition, increased loyalty, etc. - all of the things that have been documented in a number of studies of state paid sick leave laws that have been enacted, Perez added.
