President Obama has just signed an executive order that would make some big changes.
President Obama has just announced new rules in a statement on Thursday that will have big implications for working families. An executive order issued that will take effect next year will require federal government contractors to provide paid sick leave to workers, and will also mandate that large companies report to the government on how much they pay their employees, broken down by race and by gender, according to a statement from the White House.
The move has plenty of opponents, who argue that it overburdens businesses and could result in a net loss of jobs. But the White House argues that in order to be competitive on a global scale in the 21st century, this is a move the United States has to make when it comes to workplace policies.
The mandate will affect only government solicited contracts, and will affect about 1.1 million workers. They can accrue up to seven days of compensated time off every year. Many families that lose a day or two of wages wisk descending into poverty, proponents argue.
“This order seeks to increase efficiency and cost savings in the work performed by parties that contract with the Federal Government by ensuring that employees on those contracts can earn up to 7 days or more of paid sick leave annually, including paid leave allowing for family care,” the White House statement reads. “Providing access to paid sick leave will improve the health and performance of employees of Federal contractors and bring benefits packages at Federal contractors in line with model employers, ensuring that they remain competitive employers in the search for dedicated and talented employees. These savings and quality improvements will lead to improved economy and efficiency in Government procurement.”
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