Federal Contractor Minimum Wage Increases in 2017

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Updated Minimum Wages

Under the executive Order (E.O) 13658 signed February 12, 2014, U.S. government contractors have initially been paid $10.10 in 2015 and $10.15 in 2016. This is for non-tipped workers who are covered by the E.O. Tipped employees covered by the 13658 edict have been earning $5.85.

According to the 2017 updated edition, covered non-tipped federal contractors should be earning $10.20. Tipped federal contractors covered by the E.O should on the other hand be taking $6.80. In the 2017 updated edition of the E.O is also a guarantee of paid sick leave for covered workers.

E.O. Covered Contracts

Speaking of covered contractors, the E.O applies to new contracts and replacements for expiring ones entered into with the federal government on or after January 1, 2017. Provisions of the order are similar to those of the minimum wage executive order except that to an extent it covers employees who are by law exempt from provisions of the Fair Labor and Standards Act (FLSA).

The executive order precisely applies to four major categories of contractual agreements, which includes procurement contacts for construction covered by the Davis-Bacon Act (DBA), service contracts covered by the McNamara-O-Hara service contract Act (SCA), concessions contracts including those excluded from the SCA and contracts issued in connection with federal property.

Rights Under New E.O Poster

Like in the case with other labor laws, There are exemptions to this order. According to workers’ rights under the executive order poster, there’re some state and local laws that give better worker protections and as an employer or HR professional you’ll need to be aware to comply with both.

For employers working with the US government, we have prepared a special Federal Contractor Poster which should be displayed along with your standard State/Federal posting requirements.   These posters must be displayed in public locations of employment where all employees have access.

The Labor Law Center offers a worry-free service to our customers through our Poster Service Plan with automatic replacements.  What this means is that we monitor the state and federal postings and automatically send you updates when they are released.  It is that simple!

We also offer our clients our newly updated Education Center.  If you are new to labor law compliance or just wanting to keep up with the latest news and changes as they come out, this is the place to bookmark and visit regularly.

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