Establishing a Minimum Wage for Contractors
Raises Minimum Wage for Federal Contract Workers to $10.10
What it does
Agencies must include contract clauses requiring contractors to pay at least $10.10 per hour starting January 1, 2015, and apply annual increases set by the Secretary of Labor.
Real-world impact
- Raises wages for workers on covered federal contracts to at least $10.10 per hour.
- Requires contractors and subcontractors to include the wage clause in lower-tier contracts.
- Grants the Secretary authority to issue regulations and investigate compliance and violations.
Topics
Summary
This order raises the hourly minimum wage that must be paid by federal contractors to $10.10 beginning January 1, 2015, and directs the Secretary of Labor to set annual increases starting January 1, 2016, tied to inflation.
It applies to new federal contracts for services, construction, concessions, and some contracts on federal property, and requires contractors and subcontractors to include the wage clause. The order aims to improve efficiency and reduce turnover by raising low-wage workers' pay and gives the Secretary authority to issue regulations and enforce compliance.
Questions, answered
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