By Government Contracts Editorial Staff
The Department of Labor has announced the 2021 minimum wage rate for contracts covered by Executive Order 13658, Establishing a Minimum Wage for Contractors. The 2014 executive order raised the hourly minimum wage paid by contractors to workers performing work on covered federal contracts to $10.10 per hour starting January 1, 2015. For covered tipped employees, the order set an hourly cash wage of at least $4.90. The Secretary of Labor has adjusted the rate annually since January 1, 2016, in accordance with the methodology set forth in EO 13658. The 2020 minimum wage rate is $10.80 (see 84 FR 49345). For 2021, the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will rise to $10.95 per hour. The required minimum cash wage for covered tipped employees will increase to $7.65 per hour. The full text of DOL’s notice appears at 85 FR 53850.
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