Labor Department Sets New Federal Contractor Minimum Wage for Narrow Group: Key Takeaways for Employers
Some federal contractors will need to ensure compliance with a new $13.65 minimum wage that takes effect on May 11 for contracts covered by the Obama-era Executive Order 13658. But the new rate will apply only to a narrow group of contracts entered into before January 30, 2022 . What does this mean for federal contract compliance? Here’s an overview of your continuing obligations and a few steps you should consider taking now. What Happened? President Obama’s 2014 Executive Order 13658 established a minimum wage – including annual adjustments – for covered employees of federal contractors. The minimum rate under that order is currently $13.30 per hour ($9.30 for covered tipped employees). The DOL announced on February 9 that it’s raising the rate to $13.65 an hour (and $9.55 for tipped employees). The increase was an expected annual adjustment under Executive Order 13658, and the Department of Labor (DOL) noted that the new rate will apply only to certain contracts entered i...