Minimum wage rate for federal contractors published

The Wage and Hour Division of the Department of Labor issued a formal notice in the Tuesday, September 20 Federal Register announcing the applicable minimum wage rate to be paid to workers performing work on or in connection with federal contracts covered by Executive Order 13658, beginning January 1, 2017. Beginning January 1, 2017, the minimum wage rate will increase to $10.20 per hour, and to $6.80 per hour for tipped workers.

Executive Order 13658, Establishing a Minimum Wage for Contractors, signed by President Obama on February 12, 2014, raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor in accordance with the methodology set forth in the EO. The Secretary is required to provide notice of the new minimum wage rate at least 90 days before such rate is to take effect.

The applicable minimum wage under EO 13658 is currently $10.15 per hour (or $5.85 for tipped employees), in effect since January 1, 2016. (81 FR 64513, September 20, 2016.)

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