Executive Order 13658 – Federal Contractors Minimum Wage

On February 12, 2014, President Obama signed Executive Order 13658, which established a minimum wage of $10.10 per hour for workers performing work on covered Federal contracts.

Executive Order 13658 states that Federal Government contracts with sources that adequately compensate their workers promote the Federal Government’s procurement interests in economy and efficiency.

On October 7, 2014, the Department of Labor issued its final regulations to implement Executive Order 13658, establishing a minimum wage for Federal contractors to $10.10 per hour.  The Department’s final rule, which becomes effective on December 8, 2014, establishes standards and procedures for implementing and enforcing the minimum wage protections of the Order. In doing so, it incorporates existing definitions, procedures, remedies and enforcement processes under the Fair Labor Standards Act, the Service Contract Act, and the Davis-Bacon Act.

One of the key provisions of the final rules is the establishment of an enforcement process that should be familiar to most government contractors and will protect the right of workers to receive the new minimum wage.   You can access the Department of Labor’s web page on Executive Order 13658 at http://www.dol.gov/whd/flsa/eo13658/.

Executive Order 13658 applies to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after January 1, 2015, or to contracts that are awarded outside the solicitation process on or after January 1, 2015.

 

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