Early in 2014, President Obama signed Executive Order 13568, establishing a minimum wage for certain federal contractor and subcontractor employees. The U.S. Department of Labor (DOL), which was delegated enforcement authority under the Order, finalized implementing regulations on October 7, 2014, with the new minimum wage requirement becoming effective for covered contracts entered into or modified after January 1, 2015.
DOL has now published a notice announcing that the minimum wage for these federal contractor will increase to $10.15 per hour beginning in calendar year 2016. Mandatory posting provisions have also been updated to reflect the increase.
The new minimum wage requirement does not apply to all federal contractor employees, but only to employees working under four categories of covered contracts: (1) procurement contracts for construction covered by the Davis-Bacon Act; (2) service contracts covered by the Service Contract Act; (3)