Minimum Wage Rate for Federal Contractors Published

September 26, 2016

The Wage and Hour Division of the Department of Labor has issued formal notice announcing the applicable minimum wage rate to be paid to workers performing work on or in connection with federal contracts. Beginning January 1, 2017, the minimum wage rate will increase to $10.20 per hour, and to $6.80 per hour for tipped workers.

Executive Order 13658, "Establishing a Minimum Wage for Contractors," signed by President Obama on February 12, 2014, raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor. The applicable minimum wage under EO 13658 is currently $10.15 per hour (or $5.85 for tipped employees), in effect since January 1, 2016.