Pursuant to Executive Order (E.O.) 13658, signed by President Obama in 2014, certain federal contractors and subcontractors are required to pay a higher minimum wage to employees working on covered contracts. Under an escalator clause contained in the E.O., the current minimum wage of $10.35 an hour will increase to $10.60 an hour, effective January 1, 2019.
In addition, for covered contractors with tipped employees, the minimum wage for these workers will go from $7.25 an hour to $7.40 an hour, also effective January 1, 2019.
Members of the Center for Workplace Compliance (CWC) can read more here.