Federal contractors and subcontractors must pay their employees at least $10.20 per hour beginning January 1, an increase of 5 cents over the 2016 wage. Tipped workers, however, will receive almost a $1.00 increase, the U.S. Department of Labor (DOL) announced September 20 in the Federal Register.
 |
President Obama first established a federal minimum wage for contractors in a 2014 executive order (E.O. 13658), setting the minimum at $10.10 and authorizing DOL to implement future increases.
The minimums apply to most individuals performing work on a contract or “contract-like instrument” for the federal government.