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Labor Dept. Issues Federal Contractor Policy on the Minimum Wage

BudgetLabor Secretary Tom Perez on Tuesday released a final rule to raise the minimum wage of federal contractor employees to $10.10 per hour.

The increase is slated to take effect on Jan. 1 and comes after President Barack Obama signed an executive order requiring the contractor pay hike in February, the Labor Department said.

The agency says the policy will apply to approximately 200,000 workers in companies that hold federal contracts and cover services, construction, real property and concession agreements.

Employees must spend more than 20 percent of their weekly work hours on a federal project to receive the $10.10 minimum hourly wage, according to the department.

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