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Gov't Affairs News

Minimum Wage for Federal Contractors to Increase

Sep 23, 2016

The Labor Department announced September 20 that the hourly minimum wage for federal contractors will increase five cents on January 1, 2017. President Barack Obama issued an executive order in February 2014 raising the hourly minimum wage for workers on federal contracts to $10.10 an hour starting in 2015, and annually thereafter by an amount determined by the Labor secretary. The wage will increase to $10.20 next year, the notice said, up from $10.15 this year. The minimum cash wage that must be paid to tipped employees was also covered by the executive order. That will increase to $6.80 per hour next year, up from $5.85.

NECA contractors who have Federal contracts will have to comply with the rulemaking and ensure all their employees, including non-bargained, must meet the salary requriements detailed in the regulation. This requirement is a consequence of the Establishing a Minimum Wage for Contractors executive order that President Barack Obama signed in February 2014.