Final Rule on Increased Minimum Wage for Federal Contractors

On February 12, 2014, President Obama signed Executive Order 13658 to raise the minimum wage to $10.10 for all workers on federal construction and service contracts.

On October 7, 2014, the U.S. Department of Labor (DOL) published a final rule to implement the Executive Order.

The DOL stated that key provisions of the final rule will include:

  • Definitions of key terms used in the Executive Order, including contracts, contract-like instruments, and concessions contracts.
  • Guidance for contractors on their obligations under the Executive Order.
  • The establishment of an enforcement process that should be familiar to most government contractors and will protect the right of workers to receive the new $10.10 minimum wage.

Executive Order 13658 applies to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after January 1, 2015, or to contracts that are awarded outside the solicitation process on or after January 1, 2015.

The DOL created this web page to provide complete details about Executive Order 13658. The web page includes a fact sheet and answers to frequently asked questions.

In a statement, the president said he took this executive action because boosting wages lowers turnover and increases morale and will lead to higher productivity overall. In addition, raising wages will improve the quality and efficiency of services provided to the government.

Source: HR Watchdog

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