DOL Announces 2016 Contractor Minimum Wage Rate

The Department of Labor has announced the 2016 minimum wage rate to be paid to workers performing work on or in connection with federal 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 commencing 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 executive order.

DOL’s notice announces that the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will be $10.15 per hour. The required minimum cash wage for covered tipped employees will be $5.85 per hour.

For more information, see the full text of DOL’s notice.

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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