December 14, 2017

December 14, 2017

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December 13, 2017

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December 12, 2017

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Federal Contractor Minimum Wage Increase Announced – Changes Effective January 1, 2018

On September 15, 2017, the Department of Labor announced an increase in the minimum wage that certain federal contractors must pay to employees.  This comes as part of a planned incremental increase in the federal contractor minimum wage implemented by President Obama’s 2014 Executive Order (the “Order”).

As discussed in a previous blog post on the Order, the minimum wage requirement only applies to certain federal contracts.  Specifically, the Order only applies to:

  • procurement contracts for services or construction;

  • service contracts exceeding $2,500 covered by the Service Contract Act;

  • contracts for concessions; and

  • contracts that are both (a) entered into the with the Federal Government in connection with Federal property or lands and (b) covered by the Fair Labor Standards Act, Service Contract Act, or Davis-Bacon Act.

Beginning January 1, 2018, the minimum wage for covered federal contractors will increase to $10.35 per hour for hourly workers.  For tipped employees, the minimum wage for federal contractors will increase to $7.25 per hour.

© 2017 Proskauer Rose LLP.

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About this Author

Connie N Bertram, Labor, Employment, Attorney, Proskauer Rose, law firm
Partner

Connie N. Bertram is a Partner in the Labor & Employment Department, resident in the Washington, DC office. Connie is the head of the DC Labor & Employment practice, and co-head of the Whistleblowing & Retaliation, and Government Regulatory Compliance and Relations Groups.

Connie concentrates her practice on labor and employment, executive, whistleblower, government contractor and employee mobility counseling and litigation. She is frequently tapped to conduct confidential internal investigations involving executive-level employees, including claims of...

202-416-6810
Alex Weinstein, Labor Attorney, Proskauer Law Firm
Associate

Alex Weinstein is an associate in the Labor & Employment Law Department. He represents employers in all aspects of employment litigation and counseling.

Alex’s practice focuses on defending companies in both federal and state courts in various industries, including manufacturing, retail, government contracting, utilities, service companies, distribution companies and security. His litigation practice has included class actions and collective actions, general labor and employment, executive disputes, whistleblower claims, government contractor compliance, employee mobility disputes, and wage and hour litigation. He also advises clients on all aspects of employment law, including wage and hour practices, whistleblowers, leave policies, reductions in force, labor relations, flu vaccination policies, and FMLA and ADA compliance and administration.

202.416.5875