January 23, 2021

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January 21, 2021

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Department of Labor Announces Annual Increase to Minimum Wage for Federal Contractors

On August 31, 2020, the Department of Labor’s Wage and Hour Division published its annual update to the minimum wage for federal government contractors.  As of January 1, 2021, employees performing services on or in connection with certain types of government contracts will be entitled to a minimum wage of $10.95 per hour.  The minimum cash wage for employees who are eligible for the tip credit will increase to $7.65 per hour.  The current minimum wages for 2020 are $10.80 and $7.55 per hour, respectively.

The increased minimum wage stems from Executive Order 13658, which in 2014 established a special minimum wage for certain federal contractors.  Each year, the Wage and Hour Division is required to update the contractor minimum wage levels based on the CPI-W consumer price index for urban wage earners and clerical workers.  Employees are entitled to the heightened minimum wage if they work on or in connection with a construction contract covered under the Davis-Bacon Act, a service contract covered under the Service Contract Act, a concessions contract, or a contract to provide services to federal employees or the general public on federal lands or property.

Contractors should ensure that any employees covered by Executive Order 13658 are paid the required amounts. 

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume X, Number 245



About this Author


Tony Torain is committed to providing reliable counsel to strategically solve client matters and address their litigation needs. He represents companies in connection with all types of employment and labor disputes, including wrongful discharge and claims based upon:

  • The National Labor Relations Act
  • Title VII of the Civil Rights Act
  • The Americans with Disabilities Act
  • The Age Discrimination in Employment Act
  • The Family and Medical Leave Act
  • The Fair Labor Standards Act
  • The Occupational Safety and Health Act...
Jack Blum Polsinelli Employment Attorney

Jack Blum is an associate in the firm’s Employment Disputes, Litigation, and Arbitration practice, where he represents employers in connection with a wide range of employment law issues. Jack has extensive experience in defending employers against claims by their employees in federal and state courts, as well as before government agencies like the EEOC, Department of Labor, and state human rights commissions. Jack aggressively defends his client’s personnel practices and decisions while not losing sight of their underlying business goals and objectives. Jack represents clients in all...