The Labor Department’s wage and hour division has released a notice on a policy to increase the minimum wage rate of federal contractor employees from $10.15 to $10.20 per hour.
DOL said in a Federal Register notice published Tuesday the pay increase will take effect on Jan. 1 in compliance with the Establishing a Minimum Wage for Contractors executive order that President Barack Obama signed in February 2014.
The department also announces that the minimum cash wage of tipped employees who perform government contracting work will increase from $5.85 to $6.80 per hour, effective Jan. 1.
The executive order directs the secretary of DOL to calculate the annual percentage hike in the Consumer Price Index for Urban Wage Earners and Clerical Workers in order to determine federal contractor personnel’s minimum wage rate on an annual basis.
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