Department of Labor Issues Notice of 2017 Minimum Wage Increase for Federal Contractors

On September 20, 2016, the U.S. Department of Labor published a notice of the minimum wage rate to be paid, beginning January 1, 2017, to workers performing on or in connection with federal contracts covered by Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. Beginning January 1, 2017, federal contractors must pay covered workers at least $10.20 per hour. The Secretary of Labor also gave notice that beginning January 1, 2017, covered tipped employees performing work on or in connection with covered contracts must be paid a cash wage of at least $6.80 per hour.

Under the E.O., signed on February 12, 2014, contractors were initially required to pay covered workers at least $10.10 per hour as of January 1, 2015.  The E.O. permits the Secretary of Labor to adjust this amount each year. In 2016, the federal contractor minimum wage increased to $10.15 per hour. Additionally, the minimum amount covered tipped employees performing work on or in connection with covered contracts was raised to $5.85 per hour.  The $10.20 per hour rate ($6.80 for tipped employees) is now set for 2017.

The notice and updated E.O. 13658 Worker Rights poster are available here

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.