2017 Contractor Minimum Wage Increased to $10.20

Posted on September 29, 2016 by William Van Huis

The Department of Labor has announced the 2017 minimum wage rate for contracts covered by Executive Order 13658, Establishing a Minimum Wage for Contractors.

The 2014 executive order raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour starting January 1, 2015. For covered tipped employees, the order set an hourly cash wage of at least $4.90.

Beginning January 1, 2016, and annually thereafter, the Secretary of Labor adjusts the rate in accordance with the methodology set forth in the E.O. 13658. The 2016 minimum wage rate is $10.15 (see 80 FR 55646).

For 2017, the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will be $10.20 per hour.

The required minimum cash wage for covered tipped employees will increase from $5.85 to $6.80 per hour.

The full text of the DOL’s notice appears at 81 FR 64513.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a licensed attorney and a Certified Professional Contracts Manager. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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