DOL Announces 2016 Contractor Minimum Wage Rate | Practical Law

DOL Announces 2016 Contractor Minimum Wage Rate | Practical Law

The US Department of Labor has published a notice indicating the increased 2016 minimum wage rate to be paid to federal contractors and tipped employees covered by Executive Order 13658.

DOL Announces 2016 Contractor Minimum Wage Rate

Practical Law Legal Update 3-619-0021 (Approx. 3 pages)

DOL Announces 2016 Contractor Minimum Wage Rate

by Practical Law Labor & Employment
Published on 29 Sep 2015 • USA (National/Federal)
The US Department of Labor has published a notice indicating the increased 2016 minimum wage rate to be paid to federal contractors and tipped employees covered by Executive Order 13658.
On September 16, 2015, the DOL published a notice indicating the 2016 minimum wage rate that must be paid to workers and tipped employees working under federal contracts covered by Executive Order 13658 (EO 13658).
EO 13658, signed in February 2014, established a minimum wage effective January 1, 2015 (See Legal Update, Federal Contractor Minimum Wage to Increase Effective January 1, 2015). Annually, the Secretary of Labor determines a new rate according to a methodology laid out in the EO (and detailed in the September 16 notice).
Beginning on January 1, 2016:
  • The hourly minimum wage for federal contractors and subcontractors will rise from $10.10 to $10.15.
  • The hourly minimum cash wage for tipped employees will rise from $4.90 to $5.85.