Fed Contractors: 2016 Minimum Wage Increase

The rate Federal Contractors are required to pay will increase to $10.15 per hour effective January 1, 2016.

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The Department of Labor released an updated minimum wage rate for Federal Contractors that increases the rate to $10.15 per hour for 2016. The new rate represents a five-cent increase over the previous year’s rate of $10.10 per hour.

Federal Contractors who employ tipped workers must pay them a cash wage of at least $5.85 per hour.

Executive Order 13658 increased the base minimum wage rate for Federal Contractors in 2015 and authorized annual increases based on adjustments for inflation.

The Department of Labor released a revised Worker Rights Under Executive Order 13658.

Which Federal Contractors are Covered by Executive Order 13658?

The Federal Contractor minimum wage proscribed in Executive Order 13658 covers:

  • Procurement contracts for services or construction.
  • Contracts for services covered by the SCA.
  • Concessions contracts.
  • Contracts entered into with the Federal Government “in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public”.
  • Contracts where the wages of workers are governed by the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), or the Davis-Bacon Act (DBA).

Federal Contractor Minimum Wage Posting Requirements

Contractors must notify all workers on covered contracts of the applicable minimum wage rate under the Executive Order or under the FLSA, SCA, and DBA, if applicable.

Contractors may provide service employees on contracts covered by the SCA and laborers and mechanics on contracts covered by the DBA by posting the notice with the effective minimum wage rate “in a prominent and accessible place at the worksite”.

Because contractors covered by the SCA and DBA are already required to display the applicable wage determination, the notice requirement will not impose any additional burden on Federal Contractors with workers covered by the SCA or DBA.

Electronic notice may be made in lieu of physically displaying the notice for Federal contractors that customarily post notices to workers on a company web site that is customarily used for workplace notices.

Federal Contractor Remote (Off-Site) Workers

Workers on covered contracts – even if they work away from a traditional office or job site – must be provided notice of the applicable Federal Contractor minimum wage rate. The notice can be provided physically (printed and mailed, for example) or electronically.

GovDocs provides remote workers 24/7 access to workplace postings at the Federal, State, and Municipal levels through our Intranet Posting Program (IPP). With one GovDocs IPP subscription, your company intranet becomes the portal for the most current workplace postings.

Contact us to learn more about the GovDocs Intranet Poster Program for remote workers.

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