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DOL Announces Minimum Wage Increase for Federal Contractors

The U.S. Department of Labor has announced an upcoming increase to the minimum wage rate for contractors working on or in connection with contracts covered by Executive Order 13658, which applies to certain federal construction, service, and concession contracts. Executive Order 13658, "Establishing a Minimum Wage for Contractors," was signed by then-President Barack Obama in 2014 and has not been rescinded by President Donald J. Trump during his first eight months in office.

Effective January 1, 2018, the hourly minimum wage rate for workers performing work on or in connection with covered contracts will increase from $10.20 to $10.35, while the hourly minimum wage rate for corresponding tipped employees will increase from $6.80 to $7.25. Covered employers must provide notice of the applicable wage rate to employees.

Under Executive Order 13658 and its implementing regulations, the U.S. Secretary of Labor reviews the rate annually to determine whether an inflation-based increase is necessary. This is the third increase in the minimum wage rate under the order since it first went into effect in January 2015.

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About this Author

Jason Boren, Ballard Spahr Law Firm, Salt Lake City, Labor and Employment Litigation Attorney

Jason D. Boren is an experienced litigator at both the trial and appellate levels. His litigation practice focuses on complex civil and business litigation disputes involving a wide variety of matters including corporate governance and control, employment, real estate and construction, receivership litigation, intellectual property and false affiliation claims.

Mr. Boren has extensive experience with corporate governance disputes and dissenter's rights cases. Mr. Boren has represented officers, directors, corporations and shareholders in cases...

Katherine Atkinson, Employment, Litigator, Philadelphia, Ballard Spahr, Law Firm

Katherine J. Atkinson represents public and private employers in employment litigation involving claims under federal and state law. Her practice also focuses on counseling employers on a wide range of labor and employment issues.

Ms. Atkinson assists clients in the development and implementation of personnel policies, drafts employment agreements, conducts workplace trainings for employees, and advises clients on compliance with various employment laws, including Title VII, PHRA, FLSA, ADEA, FMLA, ADA, and the Pennsylvania Wage Payment and Collection Law. Ms. Atkinson also counsels public and private employers on traditional labor issues and has experience working on interest arbitrations and grievance arbitrations.

Amy Bashore, Litigator, Employment Discrimination, Ballard Spahr Law Firm, New Jersey

Amy L. Bashore represents employers in all aspects of employment law. Ms. Bashore regularly litigates employment discrimination claims, wage and hour lawsuits, common law claims, and disputes regarding non-competition/non-solicitation agreements. She has served as second chair at several trials involving claims of retaliation, discrimination, and breach of contract.

Ms. Bashore is also experienced in counseling clients on a variety of workplace issues, including employee hiring, performance management and termination, reductions in force, OSHA issues, creating and implementing...