Proposed DOL Rule Would Raise Minimum Wage

Secretary of Labor Thomas E. Perez announced a proposed rule raising the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The rule implements President Obama’s Executive Order 13658, Establishing a Minimum Wage for Contractors.

Although the rule has not yet been published in the Federal Register, the Office of Management and Budget has reviewed and approved it. A copy of the OMB-approved version of the proposed rule appears on the Department of Labor website. A fact sheet detailing key provisions of the rule is also available of the DOL site.

The rule provides guidance and sets standards for contractors concerning coverage, including coverage of tipped employees and workers with disabilities. It also establishes an enforcement process to protect the right of workers to receive the new minimum wage. The proposed rule includes an economic analysis indicating that nearly two hundred thousand workers will benefit from the increase.