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ARTICLE · 07 OCTOBER 2014

Final Regulations Implementing Minimum Wage Increases On Federal Contractors

Littler Mendelson
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The Department of Labor issued final regulations implementing Executive Order 13658 that raises the minimum wage for workers and tipped employees of federal contractors.

United StatesEmployment and HR
William Weissman
William Weissman
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On October 1, 2014, the Department of Labor issued final regulations implementing Executive Order 13658 that raises the minimum wage for workers and tipped employees of federal contractors. The new minimum wages, which will be set at $10.10 for workers and $4.90 for tipped employees, will apply 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. Annual cost of living increases will begin on January 1, 2016.

The final regulations use existing definitions from the Executive Order, the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), and the Davis-Bacon Act (DBA).

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