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

'Nobody Ever Gave Me Anything': More Boomers Say They're Not Transferring Wealth to Family Until They're Dead

A new survey from Charles Schwab found boomers are more hesitant to distribute their wealth than other generations.

Growing a Business

5 Ways to Build a Partner Network That Organically Fuels Your Growth

This article outlines strategic approaches to building a partner network that drives organic business growth. It focuses on creating shared value, leveraging industry events, and fostering intentional, scalable collaborations.

Leadership

The 4 Pillars of Leadership — How Process-Driven Leaders Enhance Performance

Let's explore how process-oriented leaders help drive businesses and teams forward — and how they can leverage their style for maximum impact.

Business News

OpenAI Says AI Industry Disruptor DeepSeek May Have Copied Its Work as Rivals Race to Catch Up

Competitor Alibaba, meanwhile, says it has developed a model that's even smarter than DeepSeek.

Side Hustle

This 29-Year-Old Quit Working 12-Hour Overnight Shifts Because Her Side Hustle Brings In Up to $8,000 a Month: 'It Makes Me Happy'

Breanna Meertins picked up a fun hobby in her free time — then learned about an opportunity that would change everything.

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.