On June 12, 2014, the Department of Labor (DOL) issued proposed rules to raise the minimum wage for federal contract workers. Click here to view the rules.
The proposed rules implement Executive Order 13658, announced by President Obama on February 12, 2014. The order requires parties who contract with the federal government to increase to $10.10 the hourly minimum wage paid to contract workers. The new minimum wage applies to new contracts and replacements for expiring contracts with the federal government solicited on or after January 1, 2015. It covers contracts for construction, services, concessions, and contracts in connection with federal property or lands.
The DOL expects this wage increase to reduce absenteeism and employee turnover while simultaneously increasing employee morale and productivity.
Interested parties can submit comments on the proposed rules within 30 days after they are published in the Federal Register, which is expected to occur during the week of June 16, 2014. The DOL will review comments and issue a final rule by October 1, 2014.
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