The Labor Department’s Wage and Hour Division announced that the minimum wage rate for workers performing work on or in connection with Federal contracts covered will increase to $10.35 per hour beginning January 1, 2018. Also to go into effect on that date will be the required minimum wage that must be paid to tipped employees performing work on or in connection with covered contracts. It will increase to $7.25 per hour.
In 2014, the Obama administration through Executive Order raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour beginning January 1, 2015 with proceding annual increases to be determined by the Secretary of Labor in accordance with a defined methhodology. The same methodology is used to determine the minimum wage of tipped employees performing work on or in connection with covered contracts. The DOL is required to provide public notice of the new minimum wage rate at least 90 days before the new rate is to take effect.
The minimum wage under the Executive Order is currently $10.20 per hour, and the applicable minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is currently $6.80 per hour.
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