Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
The U.S. Department of Labor has updated its 2016 minimum wage poster to reflect new requirements imposed by the February 12, 2014, Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. The E.O. requires federal contractors to pay workers performing work on or in connection with covered federal contracts at least $10.10 per hour beginning January 1, 2015, and at least $10.15 per hour beginning January 1, 2016. The amount may be adjusted annually by an amount determined by the Secretary of Labor in a manner prescribed by the E.O. In 2016, covered tipped employees performing work on or in connection with covered contracts generally must be paid a cash wage of at least $5.85 per hour.
Last month, three federal agencies1 published a final rule amending the Federal Acquisition Regulation (FAR) to implement this E.O. Information on the types of federal contracts subject to the E.O. and which employees are entitled to the higher minimum wage can be found here. The fact sheet issued by the DOL's Wage and Hour Division on the final rule is available here.
Under the final rule,
Contractors are . . . required to provide notice of the Executive Order minimum wage to FLSA-covered workers performing work on or in connection with covered contracts by posting a poster that will be provided by the Department.2
To this end, the DOL has revised the Federal Minimum Wage for Contractors Poster to reflect the 2016 rates. It is available for download and printing here.
1 Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA), collectively, “FAR Council.” The Department of Labor (DOL) issued its final rule to carry out this E.O. on October 7, 2014.
2 “Executive Order 13658 Frequently Asked Questions (FAQs),” Question 18 (US DOL W&H Div; available at http://www.dol.gov/whd/flsa/eo13658/faq.htm [accessed January 19, 2016]).