Professional Service Agreement

Week In Review

July 27, 2016

Final Rule on Paid Sick Leave for Employees of Government Contractors Sent to OMB: The Department of Labor has entered the final stretch on regulations implementing Executive Order 13706, which requires federal contractors (and subcontractors, including lower-tier subcontracts) to offer their employees up to seven days of paid sick leave each year, including paid leave allowing for family care.

The final rule was received by the Office of Management and Budget (OMB) for review and approval on July 22. The statutory deadline for the final version is September 30, 2016. Under the proposed rule, employees of federal contractors and subcontractors will earn a minimum of one hour of paid sick leave for every 30 hours worked; a covered contractor may not limit annual paid sick leave accrual at less than 56 hours; accrued sick leave would carry over from one accrual year to the next; and employees would be able to use the paid sick leave to care for themselves or a family member, or for absences resulting from domestic violence, sexual assault, or stalking.

Minnesota’s Minimum Wage Increases on August 1: Minimum-wage rates in Minnesota will increase on August 1, 2016. The rate for large employers (annual gross volume of sales made or business done of $500,000 or more) is $9.50 per hour.

The rate for small employers (annual gross volume of sales made or business done of less than $500,000) is $7.75 per hour; additionally, the training rate (90-day training rate paid to employees who are younger than 20 years of age) and the youth wage rate (employees younger than 18 years of age) is $7.75 per hour. Minnesota has updated its minimum wage poster that employers in the State are required to post.