DOL Announces Federal Contractor Minimum Wage, Paid Sick Leave Updates

The U.S. Department of Labor (DOL) announced two federal contractor employment law updates in September, both of which go into effect Jan 1, 2017.

Here’s a summary of those updates, as well as how they affect the respective labor law postings.

Federal Contractor Minimum Wage

First, the Federal Contractor Minimum Wage, implemented by presidential Executive Order in 2014, increases to $10.20 per hour (and $6.80 for tipped employees), effective Jan. 1, 2017.

Federal Contractor Paid Sick Leave

Second, the DOL published the Federal Contractor Paid Sick Leave Final Rule Sept. 30, which outlines:

• Covered employees
• Sick time accrual and usage
• DOL enforcement procedures to ensure compliance

According to Anne Jakala, GovDocs Compliance Counsel, the final rule “generally applies to new contracts and those that are set to expire and renew on or after Jan. 1, 2017. Because the details are complex regarding which contracts are and aren’t covered, federal contractors will have to review the rule to determine if and how it will impact their business.”

What Companies Are Affected?

These laws affect all companies with federal government contracts or subcontracts.

Posting and Notice Requirements

All company locations where employees perform work under contract or subcontract are required to display both of these postings to their employees on or before the Jan. 1, 2017, effective date.