Minimum Wage for Federal Contractors Increased Effective January 1, 2018
Effective January 1, 2018, the minimum wage for federal contractors working on or in connection with contracts covered by Executive Order 13658 will be $10.35/ hour. The announcement was made via posting in the federal register on September 15, 2017. The wage rate for tipped employees will also increase to $7.25/hour.
This is the third increase to the minimum wage under the Executive Order which first went into effect January 1, 2015. At that time the minimum wage was set at $10.10/hour. In 2016, the rate increased to $10.15/hour. The current rate, which went into effective January 1, 2017, is $10.20/hour. Pursuant to the terms of the Executive Order, the U.S. Secretary of Labor reviews the rate on an annual basis to determine whether to increase the wage rate.