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.
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 under Executive Order 13658. Click here for more information.
Click here to read the DOL announcement.
