Benefits Insights, Winter 2017
This fall, the Wage and Hour Division (WHD) of the U.S. Department of Labor issued a notice announcing the required minimum wage rate for workers performing work on or in connection with Federal contracts covered by Executive Order (EO) 13658, beginning on January 1, 2017. To comply, federal contractors will need to pay covered workers at least $10.20 per hour.
The EO, established by President Obama in February 2014, raised the hourly minimum wage paid by contractors to employees performing work on covered Federal contracts. By the methodology outlined in the order, this amount is determined annually by the Secretary of Labor.
The rate applies to all new contracts resulting from a contract awarded outside the solicitation process on or after January 1, 2017, or from solicitations issued on or after January 1, 2017. All agencies must ensure new covered contracts, contract-like instruments, and solicitations include a clause specifying the minimum wage, and the clause must also be incorporated into lower-tier subcontracts.
More information is available at: