Beginning Jan. 1, 2017, the minimum wage for workers on covered federal contracts and service contracts will increase to $10.20 per hour from $10.15 per hour in 2016. The increase is dictated by the Oct. 7, 2014, U.S. Department of Labor’s Wage and Hour Division final rule that implemented Executive Order 13658.

Beginning Jan. 1, 2016, the minimum wage for workers on covered federal contracts and service contracts will increase to $10.15 per hour from $10.10 per hour in 2015. The increase is dictated by the Oct. 7, 2014, Department of Labor’s Wage and Hour Division final rule that implemented Executive Order 13658.

On Oct. 7, the U.S. Department of Labor (DOL) Wage and Hour Division issued a final rule to implement Executive Order 13658, which would establish an hourly minimum wage of $10.10 for workers performing on covered federal construction and service contracts. 

The Department of Labor’s proposal to implement Executive Order 13658 establishing a minimum wage for federal contractors raised concerns which were outlined in comments ABC submitted July 28. Under the proposal, beginning Jan. 1, 2015, the hourly minimum wage paid by contractors to workers performing on covered federal contracts would be $10.10 per hour. In the comments, ABC states the proposal should be withdrawn or substantially modified.

On June 17, the U.S. Department of Labor Wage and Hour Division issued a proposed rule to implement Executive Order 13658, which would establish a minimum wage for federal contractors. Beginning Jan. 1, 2015, the executive order will require the hourly minimum wage paid by contractors to workers performing on covered federal contracts to be $10.10 per hour. Beginning Jan. 1, 2016, the executive order allows the minimum wage to be determined annually by the Secretary of Labor. Comments on the proposal are due July 17, 2014.