In accordance with Executive Order 13658, the minimum wage for certain Federal contractors increased to $10.20 an hour effective January 1, 2017. Generally, the increased wage rate must be paid to workers performing on or in connection with covered Federal contracts whose wages are governed by the Fair Labor Standards Act (FLSA), the Service Contract Labor Standards (SCLS), or the Davis-Bacon Act (DBA).
Covered contracts include:
To ensure compliance, contractors must pay the impacted employees the higher of 1) the minimum wage rate $10.20, or 2) the minimum wage rate for the employee’s specific SCLS occupation on the applicable wage determination. There is potential for the reversal of this executive order with the new administration soon taking office. For now, ensure compliance with the increased wage rate, but be sure to check back for further updates.
For more information, see the Department of Labor notice published in the Federal Register here. For questions regarding Executive Order 13658, please contact Barbara Connell at email@example.com or 240.364.2657.