FAR 22.403-5—Executive Order 13706.
Plain-English Summary
FAR 22.403-5 is a cross-reference provision that points readers to the governmentwide paid sick leave requirements created by Executive Order 13706. In practical terms, it tells contracting officers and contractors that the operative rules are not fully stated in this short section; instead, they are implemented in FAR subpart 22.21 and the contract clause at 52.222-62, Paid Sick Leave Under Executive Order 13706. The subject matter covered by this framework includes which Federal service and construction contracts are covered, how paid sick leave accrues and may be used, how contractors must flow the requirement down to covered subcontractors, and how compliance is administered through contract clauses and labor standards procedures. The purpose is to ensure employees performing work on covered Federal contracts receive paid sick leave, while giving agencies a uniform way to include and enforce the requirement in solicitations and contracts. For contractors, this means paid sick leave is a mandatory contract administration issue, not just an internal HR policy choice. For contracting officers, it means they must identify when the clause applies and ensure the solicitation and award documents incorporate the correct labor requirement.
Key Rules
EO 13706 creates paid sick leave
Executive Order 13706 established a Federal contractor paid sick leave requirement for certain employees working on covered contracts. FAR 22.403-5 simply points to that authority and directs users to the implementing FAR subpart and clause.
Implementation is in subpart 22.21
The detailed coverage rules, accrual standards, permitted uses, carryover rules, and related administration are found in FAR subpart 22.21. This section does not restate those requirements; it signals that they control the contractor’s obligations.
Clause 52.222-62 governs contract terms
The contract clause at 52.222-62 is the operative contract language that must be included when the Executive Order applies. It is the mechanism that makes the paid sick leave requirement enforceable in the contract.
Applies only to certain contracts and employees
The paid sick leave requirement is not universal; it applies only to the categories of Federal contracts and the employees covered by the Executive Order and implementing regulations. Determining coverage requires checking the contract type, place of performance, and employee status under subpart 22.21.
Flowdown to covered subcontractors
When the requirement applies, contractors must ensure the clause and related obligations are passed down to covered subcontractors as required by the regulation. This prevents gaps in employee coverage at lower tiers of performance.
Contract administration and compliance matter
Because the rule is implemented through a contract clause, compliance is monitored through normal Federal contract administration tools. Contractors must maintain records and practices that support proper accrual, use, and tracking of sick leave, and contracting officers must ensure the clause is properly incorporated.
Responsibilities
Contracting Officer
Determine whether the Executive Order 13706 paid sick leave requirement applies to the procurement, include the correct clause at 52.222-62 when required, and administer the contract consistently with FAR subpart 22.21.
Agency
Use the FAR implementation to ensure solicitations and contracts for covered work include the required paid sick leave terms and that agency acquisition personnel apply the rule uniformly.
Contractor
Provide paid sick leave to covered employees in accordance with the Executive Order, FAR subpart 22.21, and clause 52.222-62; track accrual and usage; and comply with any required reporting, recordkeeping, and flowdown obligations.
Subcontractor
If covered by the clause, provide paid sick leave to its covered employees and comply with the same accrual, use, and recordkeeping requirements passed down from the prime contract.
Covered Employee
Use paid sick leave only for the purposes and under the conditions allowed by the implementing regulations and the contract clause.
Practical Implications
This section is a pointer, not the full rule set, so users must read subpart 22.21 and clause 52.222-62 to understand actual obligations.
A common mistake is assuming all Federal contracts require paid sick leave; coverage depends on the contract and employee categories addressed by the Executive Order and regulations.
Contractors should build leave tracking and payroll systems that can distinguish covered employees and properly accrue, carry over, and document sick leave.
Contracting officers should verify the clause is included when required, because omission can create compliance and administration problems later.
Subcontract flowdown is easy to overlook, but it is essential for ensuring covered workers at lower tiers receive the required benefit.
Official Regulatory Text
Executive Order 13706 establishes paid sick leave for employees of certain Federal contractors. See subpart 22.21 and the clause at 52.222-62 , Paid Sick Leave under Executive Order 13706.