Minimum wage for government contractor employees rises on Jan. 1

New wage on covered fed contracts will be $16.20

      The Labor Dept. announced an hourly wage of $16.20--starting on Jan. 1, 2023--for federal contract workers who are performing in connection with covered contracts as defined by Executive Order 14026.

      In addition, the minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $13.75 per hour.

      Similar contracts that were entered into or extended prior to Jan. 30, 2022, are generally subject to a lower minimum wage rate established by a separate Executive Order dating from 2014. That is Executive Order 13658.

      Covered contracts include all those covered by the Fair Labor Standards Act, Service Contract Act or the Davis-Bacon Act.

More Information:
DOL notice: https://bit.ly/3s0coDy

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