Human Resources News & Insights

DOL finalizes $10.10 minimum wage for federal contractors

There’s good news for employees working on federal service and construction contracts. Their new minimum wage will be $10.10 per hour.  

The DOL announced a final rule that raises the minimum wage, as ordered by President Obama last February. The feds say the pay hike will affect some 200,000 workers.

In a press release, the DOL said the final rule provides guidance and sets standards for employers concerning what contracts are covered and which of their workers are covered. The rule also establishes obligations that contractors must fulfill to comply with the minimum wage provisions of the executive order, including record-keeping requirements. It provides guidance about where to find the required rate of pay for all workers, including tipped employees and workers with disabilities.

The rule applies to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after Jan. 1, 2015, and to contracts that are awarded outside the solicitation process on or after Jan. 1, 2015. The minimum wage applicable under this final rule will be indexed to inflation in future years.

The final rule orders that the executive order minimum wage requirement applies to all contracts for construction covered by the Davis-Bacon Act; contracts for services covered by the Service Contract Act; concessions contracts, such as contracts to furnish food, lodging, automobile fuel, souvenirs, newspaper stands and recreational equipment; and contracts to provide services, such as child care or dry cleaning, on federal property for federal employees or the general public.

The DOL has also posted a Fact Sheet to help answer employer questions.

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