President signs Executive Order for contractors to pay $10.10 minimum wage

On February 12, 2014, President Obama signed Executive Order 13658, which will require certain federal contractors to pay at least $10.10 per hour beginning January 1, 2015. Federal agencies will incorporate this minimum wage requirement into new federal contracts for construction or services. Affected contractors must then turn around and include the minimum wage requirement in their subcontracts on the federal project. The order indicates that the minimum wage will apply only to those who are actually working on the federal project. The rate of $10.10 per hour will be reevaluated by the U.S. Department of Labor (DOL) each year, and may go up in 2016 and subsequent years depending on increases in the Consumer Price Index. The new rates apply even to contractors who have special certificates authorizing them to pay certain individuals with disabilities at rates below the minimum wage.  The order directs the DOL to issue regulations by October 1, 2014, identifying any exemptions from the order. Vigilant will keep members informed.