DOL offers guidance on federal contractor minimum wage hike

The U.S. Department of Labor (DOL) has published a bulletin to help federal contractors understand and implement a $15 minimum wage rate for their employees starting on Jan. 30, a pay hike that was required by an April, 2021 executive order from President Joe Biden.

Existing law requires federal contractors to pay at least the established minimum wage rate to workers performing work on or in connection with certain covered federal contracts for construction or services. Another executive order from Jan. 1, 2022 authorized the DOL to adjust the minimum wage rate annually based on inflation. The wage rate established by the January executive order is $11.25 ($7.90 for tipped workers).

Last year’s executive order raises the hourly minimum wage for workers performing work on or in connection with certain covered federal contracts for construction or services, and that order established wage of $15 ($10.50 for tipped workers) as of Jan. 30, 2022, a rate that will be adjusted annually for inflation. The 2021 and 2022 executive orders share many similarities, but there are some key differences relating to coverage and applicability.

The DOL has published a final rule to implement the provisions of Biden’s 2021 order. Federal contractors can use the agency’s bulletin to learn more about who is covered by the 2021 executive order and the $15 minimum wage as well as information about employee notice, record keeping and anti-retaliation requirements.