The Wage and Hour Division (WHD) of the U.S. Department of Labor has issued a notice announcing the required minimum wage rate to be paid to workers performing work on or in connection with Federal contracts covered by Executive Order (EO) 13658, beginning on January 1, 2019. To comply, federal contractors will need to pay covered workers at least $10.60 per hour.
The EO 13658 was signed on February 12, 2014, Establishing a Minimum Wage for Contractors and raised the hourly minimum wage paid by contractors to employees performing work on covered Federal contracts. By the methodology outlined in the Order, this amount is determined annually by the Secretary of Labor. Currently, the applicable minimum wage is $10.35 per hour, in effect since January 1, 2018.
The rate applies to all "new contracts" resulting from either a contract awarded outside the solicitation process on or after January 1, 2019, or from solicitations issued on or after January 1, 2019. All agencies must ensure new covered contracts, contract-like instruments and solicitations include a clause specifying the minimum wage, and the term must also be incorporated into lower-tier subcontracts.