# Federal Contractors Track Paid Sick Leave

FEDCON issued a contractor advisory on Executive Order 13706, which requires covered federal contractors to provide employees one hour of paid sick leave for every 30 hours worked, up to 56 hours annually. FEDCON says noncompliance may result in withheld payments, contract termination for default, or debarment; this is a consultant’s warning, not a government enforcement notice or solicitation. The advisory highlights potential exposure for contractors working on contracts subject to the Service Contract Act or Davis-Bacon Act.

- Contractors should review payroll calculations, leave-accrual tracking, and employee communications against the EO’s requirements for covered employees.
- Procurement teams and primes should account for paid-sick-leave obligations when managing covered contracts and assessing subcontractor compliance.
- The advisory identifies withheld payments, default termination, and debarment as potential consequences, making labor-compliance controls relevant to contract performance and risk management.

**Jurisdictions:** federal
**Topics:** Regulatory Compliance
**Published:** November 09, 2026

### Government Entities
- U.S. Department of Labor (DOL)
- Wage and Hour Division (WHD)

### Vendors
- FEDCON (compliance consultant)

### Sources
- [FEDCON Warns Contractors to Ensure Compliance with Executive Order 13706 Paid Sick Leave Mandates or Face Penalties - The Bergen Record](https://www.northjersey.com/press-release/story/264406/fedcon-warns-contractors-to-ensure-compliance-with-executive-order-13706-paid-sick-leave-mandates-or-face-penalties) - Bergen Record