DOL Announces Minimum Wage Hike for Federal Contractors

Last week, the U.S. Department of Labor (DOL) announced that minimum wage for some federal contractors will increase to $10.15 per hour on January 1, 2016, while the minimum cash wage for tipped employees will rise to $5.85 per hour on the same date.

The increases are in line with Executive Order 13,658, which established a minimum wage for federal contractors. President Barack Obama signed the Executive Order in February 2014.

The minimum wage requirements apply to procurement contracts for construction covered by the Davis-Bacon Act; service contracts covered by the Service Contract Act; concessions contracts; and certain contracts in connection with federal property.

Contact MSEC for more information.