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 September 19, 2019 edition of the Federal Register includes the updated minimum wage rates that must be paid to workers performing work on or in connection with federal contracts covered by Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. Beginning January 1, 2020, federal contractors must pay covered workers at least $10.80 per hour. The Department of Labor also gave notice that beginning January 1, 2020, covered tipped employees performing work on or in connection with covered contracts must be paid a cash wage of at least $7.55 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 DOL to adjust this amount each year. Currently, the federal contractor minimum wage is $10.60 per hour. The minimum amount covered tipped employees performing work on or in connection with covered contracts is $7.40 per hour. Both increases—to $10.80 and $7.55 per hour, respectively—will take effect the first of the year.
The notice and updated E.O. 13658 Worker Rights poster are available here.