Government Contracts Proposed FAR Rule Adds Contractor Minimum Wage Exemptions
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Wednesday, November 20, 2019

Proposed FAR Rule Adds Contractor Minimum Wage Exemptions

By Government Contracts Editorial Staff

A proposed rule would amend the Federal Acquisition Regulation to implement a Department of Labor rule exempting certain contracts for seasonal recreational services or seasonal equipment rental from an executive order on minimum wages. The final DOL rule (83 FR 48537) implemented E.O. 13838, which exempted certain contracts from the requirements of E.O. 13658, Establishing a Minimum Wage for Contractors. E.O. 13658 raised the hourly minimum wage to be paid to workers performing on or in connection with covered federal contracts to $10.10 per hour, beginning January 1, 2015. The 2020 contractor minimum wage will be $10.80 (84 FR 49345).

Seasonal Recreation Contracts. E.O. 13838 exempts contracts or contract-like instruments with the government in connection with seasonal recreational services or seasonal recreational equipment rental for the general public on federal lands from the requirements of E.O. 13658. Lodging and food services are not exempt. The FAR rule would amend FAR 22.1903 and the clause at FAR 52.222-55 to create a definition for “seasonal recreational services” and add seasonal recreational services and seasonal recreational equipment rental for the general public on federal lands to the list of exemptions. The FAR rule also proposes conforming changes for FAR 52.212-5, FAR 52.213-4, and FAR 52.244-6. Comments referencing FAR Case 2019-002 are due December 20, 2019. For the text of the proposed rule, see ¶70,006.348.

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