In September, President Obama issued an executive order titled "Establishing Paid Sick Leave for Federal Contractors" that requires companies that do business with the Federal government to provide their employees with at least seven days of paid sick leave each year, including paid leave to allow for family care.

The executive order is estimated to provide paid sick leave to approximately 300,000 employees of federal contractors and is scheduled to take effect January 1, 2017.

According to a press release from the National Federation of Independent Business (NFIB), it is "a move widely seen as a nod to anti-business, pro-labor groups ahead of the 2016 elections," and it "comes as Congress resists legislation to change labor conditions and pay to cover all private-sector workers."

The NFIB press release continued: "Though President Obama and administration officials are touting the new paid sick leave order, this is yet another example of burdensome regulatory oversight that will harm small businesses."

Jack Mozloom, NFIB media director, noted: "No business in America would require its suppliers and contractors to increase costs that will naturally boomerang back in the form of higher prices. Although mandatory paid leave is a great benefit for workers whose employers offer it, for those workers whose employers can't absorb the cost, it is an arbitrary expense that will ultimately result in shorter hours, lower pay, or disappearing jobs."

According to a September press release the Small Business Committee of the U.S. House of Representatives, this most recent executive order is just part of a string of such orders in recent years. "Since taking office, President Obama has issued 13 executive orders directed at federal contractors," said the release. "These orders have resulted in 16 new regulations so far, with more to come. Collectively, these edicts are placing tremendous pressure on our country's industrial base - particularly on small contractors - at a time when they can least afford it."

"This has become death by a thousand paper cuts," said Rep. Steve Chabot (R-OH), chairman of the House committee. "Small contractors know that they live or die by their workforce, and would be happy to work with the Administration and Congress on reforms to help these employees. Instead, they are being forced out of the federal marketplace, because the cost of doing business is just too high."

According to the House committee press release, "More than 100,000 companies have stopped doing business with the federal government in the last three years. The more barriers this Administration puts up, the fewer small businesses will be able to compete for federal contracts. This is bad for small business and bad for government. As basic economics dictates, less competition drives prices up, not down."

And, in a letter to the Administration pleading for the president to stop issuing so many executive orders impacting private businesses, the presidents of four organizations whose members are engaged in contract work with the Federal government (the Aerospace Industries Association, the Information Technology Industry Council, the National Defense Industrial Association, and the Professional Services Council) noted, "While well-intentioned, some of the executive orders have required substantial investments in time and systems, even though their actual impact is exceedingly minimal. As such, some estimate that nearly 30 cents of every contract dollar goes toward compliance with unique government regulations."

Instant Insights /

Recent flurry of executive orders impact small businesses

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