2018 Contractor Minimum Wage Increased to $10.35

The Department of Labor has announced the 2018 minimum wage rate for contracts covered by Executive Order 13658, Establishing a Minimum Wage for Contractors.

The 2014 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 then annually, the Secretary of Labor adjusts the rate in accordance with the methodology set forth in E.O. 13658. The 2017 minimum wage rate is $10.20 (81 FR 64513).

For 2018, the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will be $10.35 per hour.

The required minimum cash wage for covered tipped employees will increase from $6.80 to $7.25 per hour.

The full text of DOL’s notice appears at 82 FR 43408.

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 Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. 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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