On February 12, 2014, President Obama signed Executive Order 13658,
“Establishing a Minimum Wage for Contractors,” to raise the minimum wage
to $10.10 for workers on Federal construction and service contracts.
The President took this executive action because boosting wages lowers
turnover and increases morale, and will lead to higher productivity
overall. Raising wages will improve the quality and efficiency of
services provided to the government. The Executive Order directed the
Department of Labor to issue regulations to implement the new Federal
contractor minimum wage.
The Department published a Notice of Proposed Rulemaking (NPRM) in
the Federal Register on June 17, 2014. The NPRM proposed standards and
procedures for implementing and enforcing Executive Order 13658 and
invited public comment on the proposed provisions. The Department
received many comments from a variety of interested stakeholders, such
as labor organizations; contractors and contractor associations; worker
advocates, including advocates for individuals with disabilities;
contracting agencies; small businesses; and workers.
After carefully considering all timely and relevant comments, the
Department has published a final rule to implement the provisions of
Executive Order 13658. The final rule issued by Secretary of Labor Tom
Perez is an important milestone in raising the minimum wage for workers
on Federal contracts.
On September 16, 2015 the Department published a Notice
to announce the applicable minimum wage rate to be paid to workers
performing work on or in connection with federal contracts covered by
Executive Order 13658, beginning January 1, 2016.
For additional information on the Final Rule, click here.
Source: Department of Labor (DOL)
