Obama Administration Rolls Out Rules on Paid Sick Leave, Pay Data U.S. Labor Secretary Thomas Perez told reporters in a phone call that the sick leave rule would directly affect more than 1.1 million workers.

By Reuters

Opinions expressed by Entrepreneur contributors are their own.

Emmanuele Contini | Shutterstock
U.S. President Barack Obama

The Obama administration on Thursday finalized rules requiring federal contractors to provide paid sick leave to employees and expanding the type of data employers must provide on their pay practices.

U.S. Labor Secretary Thomas Perez told reporters in a phone call that the sick leave rule would directly affect more than 1.1 million workers. Effective Jan. 1, it will require companies working on federal contracts to provide up to seven days of earned leave.

"You shouldn't have to win the boss lottery or the geographic lottery to have access to paid sick leave," Perez said, noting that the rule would help businesses by decreasing turnover and ensuring sick employees don't show up for work.

Meanwhile, the Equal Employment Opportunity Commission (EEOC), which enforces federal employment discrimination laws, released the final version of a new reporting form requiring employers with 100 or more employees to annually disclose aggregated pay data. The information must be broken down according to the gender, race and ethnicity of employees.

EEOC Chair Jenny Yang said on the call that the new reporting requirements would make it easier for the agency to root out discriminatory pay practices.

Business groups, however, say analyzing pay data is complicated, and the new information employers must disclose will do little to help the EEOC while opening companies up to more discrimination claims.

The same groups and many Republicans in Congress say the sick leave rule could discourage many employers, particularly small businesses, from seeking federal contracts.

(Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and David Gregorio)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Here Are the 10 Highest-Paying Jobs with the Lowest Risk of Being Replaced By AI: 'Safest Jobs Right Now'

A new report from career resources platform Resume Genius finds the top 10 AI-proof careers expected to see the most growth within the next decade.

Science & Technology

How I Went From Side Hustle to 7 Figures Using These 4 AI Tools (No Tech Skills Needed)

Scale faster, work less and grow a 7-figure business — no team needed.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Real Estate

Why Buying a 'Second Home' First is the New Way to Build Wealth — and Enjoy Free Vacations

The dream of owning a home has never felt more out of reach. So, a growing number of aspiring homeowners are making an unconventional choice.

Money & Finance

Why This Market Dip Is Your Chance to Accelerate Product Velocity, Win Customers and Own the Next Cycle

When markets go quiet and headlines fade, the founders who keep building, shipping, and listening are the ones who will be ready when the next bull run erupts without warning.

Health & Wellness

How Mastering Your Nervous System Boosts Leadership Presence and Performance

Discover a modern leadership system designed to boost your effectiveness, reduce stress and bring more clarity and joy to how you lead.