The Department of Labor announced on February 20, 2026, in the Federal Register that it is submitting an information collection request to the Office of Management and Budget for review. This request pertains to recordkeeping requirements under regulations implementing Executive Order 13706, which establishes paid sick leave for employees of federal contractors. The move comes as part of the Paperwork Reduction Act process, aiming to ensure that the collections are necessary and minimize burdens on affected businesses. Public comments are invited until March 23, 2026, providing an opportunity for stakeholders to weigh in on the practical utility and accuracy of these requirements. This development underscores ongoing efforts to balance worker protections with administrative efficiency in federal contracting.
Background on Executive Order 13706
Executive Order 13706, signed by President Barack Obama on September 7, 2015, requires federal contractors to provide employees with up to seven days of paid sick leave per year, including time for family care. As detailed in the order published at 80 FR 54697, the policy aims to promote efficiency and cost savings in government procurement by ensuring a stable and healthy workforce. The Department of Labor's Wage and Hour Division issued final regulations in 2016, found at 81 FR 67598 and codified in 29 CFR 13, to enforce these provisions. These rules apply to contracts covered under the Davis-Bacon Act, the Service Contract Act, and certain other agreements, mandating that employers track leave accrual, usage, and related documentation. The executive order built on prior labor policies, such as the Family and Medical Leave Act of 1993, which provides unpaid leave but does not address paid time off for short-term illnesses. Key players include the Department of Labor, which oversees enforcement, federal contractors who must comply, and the Office of Management and Budget, responsible for approving information collections under the Paperwork Reduction Act of 1995.
Details of the Information Collection Request
The information collection request, identified by OMB Control Number 1235-0029, covers various recordkeeping obligations for employers subject to the paid sick leave rules. As outlined in the Federal Register notice, these include maintaining records of employee notifications about leave accrual, requests to use sick leave, dates and amounts of leave taken, written responses to leave requests, certifications for extended leave of three or more consecutive days, and calculations related to accrual and usage. Employers must also retain copies of relevant contracts, pay and benefits details during leave, and records of any payments for unused leave upon employee separation. The Department of Labor estimates that this affects about 1,321,800 respondents, primarily private sector businesses, generating approximately 39,049,276 responses annually. The total estimated time burden is 769,122 hours, with additional costs of $1,598,951.52 for operations and maintenance. These figures represent a revision to ensure effective administration, as noted in a prior notice from August 7, 2025, at 90 FR 38184. The request seeks a three-year approval, aligning with Paperwork Reduction Act limits on collection authorizations.
Public Comment and Review Process
The notice invites comments on five specific areas: the necessity of the collection for departmental functions, timely processing of information, accuracy of burden estimates, ways to improve quality and clarity, and methods to reduce respondent burden, including through technology. Comments must be submitted via www.reginfo.gov by March 23, 2026, to the Office of Management and Budget. This process reflects the Paperwork Reduction Act's emphasis on public input, as seen in similar reviews for labor-related collections, such as those under the Fair Labor Standards Act. Nora Hernandez, a Department of Labor official, is listed as the contact for further information, reachable at 202-693-8633 or by email. The agency cannot generally require responses to unapproved collections, highlighting the importance of this OMB review in maintaining legal compliance.
Potential Implications and Perspectives
Short-term implications include possible adjustments to the collection requirements based on public feedback, which could refine how contractors track and report sick leave data. For instance, if comments highlight inefficiencies, the Department might streamline certification processes or promote digital recordkeeping to cut costs. Long-term, this could influence broader labor policies, potentially setting precedents for paid leave expansions beyond federal contracts, amid debates in Congress over national mandates like those proposed in the Build Back Better Act discussions. Perspectives vary: labor advocates, such as unions, may argue that robust recordkeeping ensures accountability and protects workers, citing studies from the Economic Policy Institute showing paid leave reduces turnover. Contractors and business groups, represented by entities like the U.S. Chamber of Commerce, might view the burdens as excessive, pointing to administrative costs that could raise contract prices for the government. Legal experts note that while no direct court challenges to this specific ICR are cited, related precedents like the Supreme Court's decision in Department of Labor v. Acosta (2019) on regulatory deference could shape enforcement. These views illustrate the tension between worker rights and business flexibility without favoring one side.
In summary, this information collection request reinforces the framework for paid sick leave in federal contracting, rooted in a 2015 executive order. Potential next steps involve Office of Management and Budget review, which may lead to approval, modifications, or extensions. Ongoing challenges include adapting to evolving workforce needs, such as post-pandemic health concerns, and addressing debates over federal versus state-level labor standards. These elements highlight the dynamic interplay between policy implementation and administrative oversight in federal labor regulations.
