Get All Access for $5/mo

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.

Editor's Pick

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Growing a Business

You Need an Advisory Team More Than Ever. Here's Why — and How to Run One Effectively.

The right advice, particularly in a company's early stages, can be an existential matter: how to surround yourself with the right minds.

Growing a Business

You'll Never Satisfy Your Customers — or Grow Your Business — Without Doing These 3 Things

Customer feedback can be used to drive sustainable growth. Here are three approaches to how you can move past measurement to drive improvement and ultimately grow your business.