PSC criticizes sick leave rule

The Labor Department’s proposed rule on sick leave for federal contractors is too broad and too burdensome, especially for small business contractors, the Professional Services Council wrote in a comment on the rule.

The rule is intended to implement the president’s executive order of September 2015. It mandates up to seven days of sick leave a year for employees on covered contracts.

While PSC members agree with the rule in principle, they want more flexibility and fewer mandates in providing sick leave, especially for small firms, Alan Chvotkin, PSC executive vice president, wrote in the comment letter.

“PSC encourages special attention to the cost-compliance tradeoff for small businesses. That contracting segment will be disproportionately burdened because these newer, younger, and smaller firms often do not have compliance operations on the scale and maturity of larger contractors,” Chvotkin wrote.

PSC is concerned that small firms’ compliance costs may be underestimated, and there also may be increased transition costs for services contracts and increased monitoring costs in prime-sub relationships.

More information: Proposed rule: http://goo.gl/sWI2gG
PSC comments: http://goo.gl/oRlbwu

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Washington Insider:

Correction to 4/15/16 chart: Changes in number of HUBZone Firms by state