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ARTICLE · 19 DECEMBER 2014

Federal Contractors Subject To Minimum Wage

Fox Rothschild LLP
Fox Rothschild LLP
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Bottom Line Up Front: This blog post updates several of our previous posts addressing the implementation of the minimum wage for federal contractors.

United StatesGovernment, Public Sector
Above The Law
Above The Law
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Bottom Line Up Front: This blog post updates several of our previous posts addressing the implementation of the minimum wage for federal contractors. The FAR Council issued an interim rule on December 15, 2014, which establishes a new FAR provision – FAR 52.222-55 – governing the federal minimum wage. Specifically, the minimum wage is set at $10.10 per hour as of January 1, 2015 for contractor employees performing certain federal contracts.

With few exceptions, FAR 52.222-55 will apply to all prime contractors and subcontractors (after February 13, 2015) working under "new" federal contracts subject to the FAR. The minimum wage is generally not retroactive to currently existing contracts, but will apply to bilateral modifications extending a contract more than 6 months and may be applied to Indefinite Delivery / Indefinite Quantity (IDIQ) contracts with more than 6 months of task orders / delivery orders remaining. Contractors are entitled to a price adjustment on

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