Overview
Federal Contractors – As we previously reported, businesses with new or renewed federal contracts will have to pay their minimum wage workers $10.10 an hour. The rate increase will apply only to solicitations and contracts issued on or after January 1, 2015. Beginning January 1, 2016, and annually thereafter, the minimum wage will increase based on an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Contracts Impacted - The Executive Order (EO) applies to new contracts and “contract-like instruments.” The Department of Labor (“DOL”) is tasked with issuing regulations by October 1, 2014, that will apply to contractors at all tiers. DOL likely will provide guidance as to the meaning of a “contract-like instrument” in the regulations.
The EO lists the following types of contracts subject to the new wage requirement:
- procurement contracts for services or construction;
- contracts and contract-like instruments for services covered by the Service Contract Act (“SCA”)
- contracts or contract-like instruments for concessions; and
- contracts or contract-like instruments entered into with the federal government in connection with federal property or lands and related to offered services for federal employees, their dependents, or the general public.
A new Federal Contractor All–In-One poster is required. Please note that this change will not impact the Federal Combined Poster only the Federal Contractor poster.
To order an updated Federal Contractor poster:
Click Poster Ordering under HR Quick Links.
You will be directed to the ADP Poster Compliance Center home page.