NEW LAW: Federal Contractor Minimum Wage to Increase in 2019

In a 2014 Executive Order (“Establishing A Minimum Wage for Contractors” Executive Order 13658), President Obama required the US Department of Labor to annually increase the minimum wage rate for federal contractors.

In compliance with that Order, the U.S. Labor Department has published the 2019 minimum wage rates for federal contractors.   Under the new regulations, the minimum wage rate for federal contractors will increase as follows:

  • January 1, 2019 — $10.60 per hour for hourly federal contractors
  • January 1, 2019 — $7.40 per hour for tipped workers performing on or in connection with a federal contract

These new minimum wage rates go into effect on January 1, 2019.   At that time, affected employers will also be required to post the updated E.O. 13658 Worker Rights poster.

It is recommended that companies who contract with the federal government review the hourly wage rate paid to their employees who perform work under those contracts and prepare to make any necessary adjustments.