Government Contracts Contractor Minimum Wage Increased to $10.80 for 2020
Friday, October 18, 2019

Contractor Minimum Wage Increased to $10.80 for 2020

By Government Contracts Editorial Staff

The Department of Labor has announced the 2020 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. Beginning January 1, 2016, and then annually, the Secretary of Labor adjusts the rate in accordance with the methodology set forth in E.O. 13658. The 2019 minimum wage rate is $10.60 (see 83 FR 44906). For 2020, the minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will rise to $10.80 per hour. The required minimum cash wage for covered tipped employees will increase to $7.55 per hour. For the full text of DOL’s notice, see 84 FR 49345.

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