Executive Order 13658 which took effect on January 1,
2015 federal contractors are required to pay their employees
a higher minimum wage.
The annual increases in the minimum wage is tied to
the Consumer Price Index (CPI).
Hence, On September 4, 2018, the Department of Labor
published a Notice in the Federal Register to announce that,
beginning January 1, 2019, the Executive Order 13658 minimum
wage rate is increased to $10.60 per hour (83 FR 44906).
This Executive Order minimum wage rate generally must be
paid to workers performing work on or in connection with
covered contracts. Additionally, beginning January 1, 2019,
tipped employees performing work on or in connection with
covered contracts generally must be paid a minimum cash wage
of $7.40 per hour.
The order applies to Prime Contractors and sub-contractors
The order shall apply only to a new contract or
contract-like instrument such as:
- it is a procurement contract for services or construction;
- it is a contract or contract-like instrument for services
covered by the
Service Contract Act;
- it is a
contract or contract-like instrument for concessions,
including any concessions contract excluded by Department of
Labor regulations at
29 C.F.R. 4.133(b);
- it is a contract or contract-like instrument entered into
with the Federal Government in connection with Federal
property or lands and related to offering services for
Federal employees, their dependents, or the general public;
For procurement contracts where workers' wages are governed
Fair Labor Standards Act, this order shall apply only to
contracts or contract-like instruments that exceed the
micro-purchase threshold, as defined in 41 U.S.C. 1902(a).