Workers on federal construction and service contracts will receive an increase in their minimum wage in 2018.
On January 1, 2018, federal contractors covered under Executive Order 13658 will be required to pay workers $10.35/hour, up from $10.20/hour.
Tipped federal contract employees also will see their minimum wage increase to $7.25/hour from $6.80/hour. Tipped employees are workers who regularly receive more than $30 per month in tips.
By way of comparison, a covered, non-exempt worker not employed by a federal contractor receives a federal minimum wage of $7.25/hour.
Under the Executive Order that went into effect in 2015, the U.S. Secretary of Labor must conduct an annual review of minimum wage for federal contractors in order to determine if an increase should be made to the hourly wage.
The Executive Order’s minimum wage requirement applies to four major categories of contractual agreements:
Procurement contracts for construction covered by the Davis-Bacon Act (DBA);
Service contracts covered by the Service Contract Act (SCA);
Concessions contracts, including any concessions contract excluded from the SCA by the Department of Labor’s regulations at 29 CFR 4.133(b); and
Contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.