In an earlier blog post, we discussed President
Obama's declaration during the State of the Union Address
concerning a minimum wage increase for workers performing on new
Federal services and construction contracts. A new Executive
Order shows that the proposed increase is now officially in the
works.
Executive Order 13658 ("Establishing a
Minimum Wage for Contractors") – signed by the
President in February and implemented on June 17, 2014 –
proposes to raise the minimum hourly wage on certain Government
contracts to $10.10 per hour. The increase could take effect
as early as January 1, 2015.
According to the Executive Order itself, the new wage will have
a positive effect on the Government's procurement interests and
promote "adequate compensation" for those working on
Government contracts. That said, and as we previously
indicated, the proposed increase is still subject to challenge by
employers and private interests groups likely arguing that the new
wage
