HR Alert

Minimum Wage for Covered Federal Contract Workers Will Rise to $10.35 Per Hour

Rate for Tipped Employees Rises to $7.25 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 $10.35 per hour ($7.25 per hour for covered tipped employees) beginning January 1, 2018.

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 under Executive Order 13658. Click here for more information.

Click here to read the DOL announcement.

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