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.