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Minimum Wage Rates for Government Contracts Increase

OutSolve

Wages on federal contracts will increase to a minimum of $10.80 per hour; minimum tipped wage to $7.55

On September 19, 2019, the DOL’s Wage and Hour Division (WHD) published a change in the federal register to E.O. 13658 (Establishing a Minimum Wage for Contractors). WHD increased the minimum wage rate for employees performing work on or in connection with a federal contract to $10.80 per hour and increased the minimum tipped wage to $7.55 per hour. The new rates will take effect on January 1, 2020.

E.O. 13658 was originally signed in February 2014 and raised the hourly minimum wage on covered federal contracts to $10.10 as of January 1, 2016. Beginning in January 1, 2016, and annual thereafter, the Secretary of Labor will make adjustments in accordance with a specified methodology.

Find the original regulations here

Find the updated poster here

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