The Wage and Hour Division of the U.S. Department of Labor (“DOL”) published its final regulations to implement Executive Order 13658, “Establishing a Minimum Wage for Contractors,” which was signed by President Obama on February 12, 2014. The new minimum wage will increase to $10.10 per hour under new contracts and replacement contracts with the federal government, if the contract results from a solicitation issued on or after January 1, 2015.
The new minimum wage requirement will apply to contracts and subcontracts covered by the Service Contract Act (SCA), the Davis-Bacon Act or contracts with the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public (each individually a “Covered Contract”). The workers who perform work on or in connection with a Covered Contract will be entitled to the new minimum wage unless the worker is an exempt employee under the Fair Labor Standards Act (“FLSA”), such as a bona fide executive, administrative or professional employee. Apprentices, learners or messengers whose wages are calculated pursuant to special certificates are excluded from the minimum wage requirement, as are students.