President Obama Orders Benefits for Federal Contract Workers
Following a move by President Obama, some 300,000 federal employees will have access to sick leave, a new benefit not previously offered. The executive order requires that federal contractors offer their employees up to seven days of paid sick leave per year, according to an article in Money Talks.
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
“When you make sure everybody gets a fair shot and a fair sake, and you’re fighting for decent wages for workers, and making sure they’ve got decent benefits, when you reward people who are playing by the rules—that’s how everybody does better,” President Obama said Monday.
Sick Leave for Federal Contractors
According to a news release offered by the White House, some 300,000 people working under federal contracts will now have the ability to earn up to 7 days of paid sick leave each year. Starting in 2017, workers will earn a minimum of one hour of paid sick leave for each 30 hours they work. This means the average employee who earn just over 5 hours of sick leave per month.
Per the executive order, employees may use the sick leave if the employee is sick or if a family member (specifically spouse, child, partner or parent) is ill and needs attention. Employees may also use these hours for time off because of domestic violence or sexual assault.
According to the press release, the purpose of these new requirements is to improve the health and performance of employees by giving them access to federal benefits. Additionally, these new rules will help protect the public from illness, as federal employees will not feel pressured to work when they are ill.
The Healthy Families Act
As part of this new move, President Obama asked Congress to pass the Healthy Families Act.
This act would require that all businesses with 15 or more employees offer up to seven paid sick days each year. This federal legislation would mean that every working American would receive paid family medical leave to cover the cost of taking care of a new child or caring for a seriously ill family member.
Recently the State of Massachusetts passed a law expanding paid leave. The president encouraged other states to follow suit.
The president made an additional announcement that affects both federal employees and civil employees. The Department of Labor will publish a final ruling that “prohibits federal contractors from discriminating against employees and job applicants who choose to discuss their compensation.” Workers do not have to disclose compensation on other jobs, but the tool allows for more oversight of gender pay discrepancies.
In recent years, President Obama has addressed extended overtime pay to almost 5 million federal employees. This rule would allow salaried employees who make less than $50,400 to have access to overtime rights. Additionally, Obama also signed an executive order raising minimum wages to $10.10 for federal employees. In 2012, Obama signed the American Taxpayer Relief Act, which reduced income tax rates for nearly all American workers.
