Minimum Wage for SCLS Contractors Increased to $10.20

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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:

  • procurement contracts for construction covered by the DBA;
  • service contracts covered by the SCLS;
  • concessions contracts, including any concessions contract excluded from the SCLS by the Department of Labor’s regulations at 29 CFR 4.133(b); and,
  • contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.

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 or 240.364.2657.

About Barbara Connell

Barbara Connell has written 1 post in this blog.

Barbara Connell is a Senior Consultant in Aronson LLC’s Government Contract Services Group, where she works with government contractors to provide customized solutions that ensure success and compliance. As a Senior Consultant, Barbara assists clients with GSA Schedule contract acquisition and maintenance, Service Contract Act compliance, preparation of budgeted indirect rates and submission of incurred costs and a variety of government contract compliance areas. As an expert in her field, Barbara is a regular contributor to Aronson’s Fed Point blog and she is a featured speaker for Aronson on Service Contract Act compliance. Barbara earned a bachelor’s degree from the Pennsylvania State University, where she majored in marketing with a minor in information systems management.

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