This briefing covers active market intelligence, regulatory guidelines, and tactical capture recommendations for federal and defense contractors pursuing opportunities in this procurement classification.
United States: It’s Official: $10.10 Minimum Wage For Government Contractors
The U.S. Labor Department (DOL) published final regulations implementing President Obama’s Executive Order of a higher minimum wage for government contractors, raising the minimum wage to $10.10 per hour for workers on government contracts. The new minimum wage will take effect January 1, 2015, and will be adjusted annually, as it is indexed to the consumer price index for urban wage earners. The new minimum wage will apply to some, but not all, employees working directly on covered federal contracts, and it will apply to many others who do not work on the contract but work “in connection” with it.
To Which Contracts Does It Apply?
First, the minimum wage does not apply to government contracts and subcontracts for the manufacturing or furnishing of materials, supplies, articles or equipment which are covered under the Walsh-Healey Public Contracts Act. It also does not apply to grants or cooperative agreements, nor to contracts and agreements with – and grants to – Indian tribes. But the new minimum wage rule does apply to most other government contracts, subcontracts and contract-like instruments, such as those covered by the Service Contract Act (SCA), for services, or the Davis-Bacon Act, for construction.
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