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Final Rule Raising Minimum Wage for Federal Contractors Issued

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Final Rule Raising Minimum Wage for Federal Contractors Issued

October 2, 2014

On October 1, the Department of Labor announced that it will publish the final rule implementing Executive Order 13658, “Establishing a Minimum Wage for Contractors.” President Obama signed the Order on February 12, 2014 requiring the raising of the minimum wage to $10.10 for all workers on Federal construction and service contracts.  The Order directed the Department of Labor to issue regulations to implement the new Federal contractor minimum wage.  
 

Key provisions of the final rule include the following:

  • It defines key terms used in the Executive Order, including contractscontract-like instruments, and concessions contracts.
  • It provides guidance for contractors on their obligations under the Executive Order. 
  • It establishes an enforcement process that should be familiar to most government contractors and protects the right of workers to receive the new $10.10 minimum wage. 
  • It confirms that approximately 200,000 workers will benefit from the Executive Order.

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.