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Seyfarth Synopsis: Employees on certain
government contracts must be paid in accordance with the
requirements of a 2014 Executive Order on Minimum Wage. Effective
January 1, 2019, the minimum wage for covered workers is $10.60 per
hour, with a minimum direct wage of $7.40 per hour for tipped
employees.
In 2014, President Obama issued an Executive Order establishing
a minimum wage for certain federal contractor employees, and
requiring that the minimum wage be adjusted on an annual basis.
That Executive Order continues to be in effect, and, in the
September 4, 2018 Federal Register, the Department of Labor's
Wage & Hour Division announced that the wage rate will increase to
$10.60 per hour. The minimum cash wage for covered tipped employees
will increase to $7.40 per hour.
Workers performing on or in connection with covered contracts
must be paid these new rates beginning January 1, 2019. We
discussed many of the applicable definitions and coverage issues in
our
prior coverage.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
