The United States Department of Labor's exercise of executive power over labor and employment matters continued last week as the DOL published in the Federal Register a proposed rule raising the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The proposed rule implements Executive Order 13658, which was announced by the president on Feb. 12.

The proposed rule provides guidance and sets standards for employers concerning coverage, including coverage of tipped employees and workers with disabilities. It also establishes an enforcement process under which the DOL Wage and Hour Division may investigate and conciliate alleged violations and ultimately file suit to recover unpaid wages.  Debarment is also a remedy under the proposed rule. 

Executive Order 13658 applies to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after Jan. 1, 2015, and to contracts that are awarded outside the solicitation process on or after Jan. 1, 2015. The order applies to four major categories of contractual agreements: contracts for construction; service contracts under the Service Contract Act; concessions contracts; and contracts entered into by the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public. 

Interested parties can submit comments at http://www.regulations.gov. Comments must be received within 30 days following the June 17 publication in the Federal Register. The DOL has indicated that it will review comments received and issue a final rule by Oct. 1. More information about the proposed rule is available at http://www.dol.gov/whd/flsa/nprm-eo13658/.