Minimum Wage for Covered Federal Contract Workers Will Rise to $10.15 Per Hour

October 1, 2015

in Misc.

Rate for Tipped Employees Rises to $5.85 Per Hour

The U.S. Department of Labor (DOL) has announced that the minimum wage for workers performing work on or in connection with certain federal contracts will rise to $10.15 per hour ($5.85 per hour for covered tipped employees) beginning January 1, 2016.

Background
Executive Order 13658 established a minimum wage requirement for federal contractors and subcontractors. The Order applies to four major categories of contractual agreements:
•Procurement contracts for construction covered by the Davis-Bacon Act (DBA);
•Service contracts covered by the Service Contract Act (SCA);
•Concessions contracts, including any concessions contract excluded from the SCA by DOL regulations; and
•Contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.

Note: Certain workers are excluded from coverage. Click here for more information.

A final rule implementing the Order requires the DOL to determine the minimum wage yearly beginning January 1, 2016, and publish this wage rate at least 90 days before the wage is to take effect.

New Wage Rates and Poster
Beginning January 1, 2016, the new minimum wage rate that must generally be paid to workers performing work on or in connection with covered contracts is $10.15 per hour. Also beginning January 1, 2016, the new minimum hourly cash wage that must generally be paid to tipped workers performing work on or in connection with covered contracts is $5.85 per hour.

A new poster reflecting the new rates is available by clicking here.

The DOL offers additional resources concerning the minimum wage for contract workers, including a Fact Sheet and FAQs.

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