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New Executive Order requires many federal contractors to increase minimum wage for workers to $15 by 2022

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On April 27, 2021, President Biden issued his latest executive order (the EO), which requires all federal agencies to incorporate a $15 per hour minimum wage into nearly every federal contract effective January 2022.

Beginning on January 30, 2022, all agencies will incorporate the $15 minimum wage in new contract solicitations, and the wage will be implemented in all new contracts beginning on March 30, 2022.  In an effort to keep the minimum wage at a sustainable level for workers, the EO institutes an index for the wage to keep pace with inflation and cost of living increases.  At present, the minimum wage for federal contract employees is $10.95 per hour, and the tipped minimum wage is $7.65 per hour.

The EO also eliminates the tipped minimum wage for federal contractors, which must be phased out by agencies and contractors by 2024.  Until now, federal contractors employing tipped workers could pay sub-minimum wages as long as tips closed the gap up to the minimum wage.  Under the EO, the tipped minimum wage will increase to $10.50 per hour beginning January 30, 2022, reach 85 percent of the federal contractor minimum wage on January 1, 2023, and then match the federal contractor minimum wage effective January 1, 2024.

Continue reading at:  JD Supra

See also:  Biden signs an Executive Order for $15 federal contractor minimum wage (Wiley)

President Biden Issues an Executive Order Increasing the Minimum Wage for Many Employees of Federal Contractors to $15.00 (Pillsbury)

DOD’s cybersecurity certification requirements to appear in DHS contracts

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The Department of Defense is figuring out how to incorporate its Cybersecurity Maturity Model Certification program in contracts offered by the Department of Homeland Security, according to the official helming the initiative.

The CMMC program will ultimately require all defense contractors have their cybersecurity practices certified by a system of independent third-party auditors.  As it is now, companies simply pledge their adherence to security controls detailed in standards issued by the National Institute of Standards and Technology.

Rules to implement the program are expected to be finalized as early as next month and have caused some heartburn within the contracting community.  But the program is being rolled out in phases—15 prime contractors, and all their subcontractors, are being selected to undergo assessments this year—and won’t be fully applicable until 2025.

Continue reading at:  Nextgov

5 steps to compliance with the fair pay and safe workplaces rules

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The much-anticipated so-called federal contractor “blacklisting” rules and guidance (“Final Rule” and “Guidance”) were published in the federal register on August 25, 2016. The Final Rule becomes effective on October 25, 2016 and imposes four new legal obligations on covered federal contractors, which will be phased in over the next year (starting as early as October 25, 2016).

It is important to also note that this is being phased in via Federal Acquisition Regulation (“FAR”) solicitation and contract provisions. This means that the Final Rule “becomes effective” by beginning to appear in new solicitations issued on or after October 25, 2016. This should not dampen a company’s concern and speed of progressing through the steps below and determining and pursuing compliance, but it is critical to understand and follow the specific path of obligation.

  • First, federal contractors will have to disclose “labor law decisions” both before and after contract award. The federal government will use these disclosures in making their “responsibility” determinations – the determination of whether the contractor is a responsible source to whom a contract may be awarded.
  • Second, contractors must give a wage statement to employees containing for each workweek the number of hours worked, the number of overtime hours, rate of pay, and additions to and from gross pay, and total gross pay.
  • Third, contractors must provide written notice to independent contractors informing them that they are independent contractors and not employees.
  • Fourth, contractors can no longer enter into agreements with employees or independent contractors that require arbitration of claims under Title VII of the Civil Rights Act (includes discrimination and retaliation claims based on race, color, religion, sex and national origin) or sexual harassment claims.

Federal contractors will need to become quick studies of the Final Rule and Guidance in order to begin developing procedures to ensure compliance as these requirements phase in over the next year.

Keep reading this article at: http://www.directemployers.org/2016/09/20/five-steps-compliance-fair-pay-safe-workplaces-final-rule/

Minimum wage for federal contractors updated; paid sick leave rule coming

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DOLThe U.S. Department of Labor (DOL) has published the minimum wage rate to be paid to workers performing on or in connection with federal contracts covered by Executive Order 13658, Establishing a Minimum Wage for Contractors.  Beginning January 1, 2017, federal contractors must pay covered workers at least $10.20 per hour. In addition, covered tipped employees performing work on or in connection with covered federal contracts must be paid a cash wage of at least $6.80 per hour.

The Executive Order was originally signed February 12, 2014, and it permits the Secretary of Labor to adjust this amount each year.   The notice and an updated Worker Rights poster are available here.

Meanwhile, the rule effectuating Executive Order 13706, which requires certain federal contractors and subcontractors to provide their workers with up to seven days of paid sick leave annually, has completed the Office of Management and Budget (OMB) review process, according to Politico.

Under the rule as proposed, employees may use paid sick days for themselves, for a sick family member, or for absences related to sexual assault, domestic abuse, or stalking.

The Executive Order requires DOL to publish a final rule implementing the Order by September 30, 2016.

Minimum wage for federal contractor workers to increase Jan. 1, 2016

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On February 14, 2014, President Obama issued an executive order requiring certain federal contractors and subcontractors to pay an increased hourly minimum wage as mandated by the secretary of labor, who was also to determine increases to the wage rate on an annual basis.

Dept. of LaborOn September 16, 2015, the Secretary of Labor Announced that, effective Jan. 1, 2016, new minimum wages for employees of federal contractors will be increased from $10.10 to $10.15 per hour and that the rate for tipped employees will rise from $4.90 to $5.85 per hour.

What Contracts Are Covered?

Keep reading this article at: http://www.oanow.com/news/business/article_b09cf56e-5f2b-11e5-b780-d3ebd138a752.html

DOL releases final rule raising minimum wage for employees working on covered federal contracts

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On October 1, the Department of Labor (“DOL”) announced its final rule raising the minimum wage for employees working on covered federal government contracts from $7.25 an hour to $10.10 an hour.  The final rule implements Executive Order 13658, which was issued by President Obama last February.

The final rule applies to a wide range of contracts issued for solicitations on or after January 1, 2015, including (1) procurement contracts for services or construction; (2) service contracts exceeding $2,500 covered by the Service Contract Act; (3) contracts for concessions; and (4) contracts that are both (a) entered into the with the Federal Government in connection with Federal property or lands and (b) covered by the Fair Labor Standards Act, Service Contract Act, or Davis-Bacon Act.  The rule also applies to (1) individuals with disabilities who were previously paid below the minimum wage because their disability affects their productivity; and (2) tipped employees, whose minimum hourly pay will be raised from $2.13 to $4.90.

Keep reading this article at http://www.mondaq.com/article.asp?articleid=344992 for details on employees covered, impact on employers, and next steps.

Rules proposed to implement Executive Order on minimum wage in federal contracts

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An Executive Order, signed by President Obama in February, directed the U.S. Department of Labor (DOL) to develop guidelines to increase the minimum wage for federal contractors.   On June 12, the DOL, in conjunction with the White House, released its proposed rule that raises the minimum wage for workers on federal service and construction contracts to $10.10 per hour.

The 181-page proposed rule (found here as published in the Federal Register) would increase wages for nearly 200,000 workers, according to an economic analysis included in the proposal.

The Executive Order applies to new and renegotiated federal contracts starting January 1, 2015.

The proposed rule would apply to all construction contracts covered by the Davis-Bacon Act; service contracts covered by the Service Contract Act; concessions contracts, such as contracts to furnish food and lodging on federal property; and contracts to provide services, such as child care or dry cleaning, in federal buildings.  Tipped employees of government contractors and their subcontractors would also receive a raise under the proposed rule.

The DOL’s Wage and Hour Division will be responsible for enforcing the proposed rule. The proposed rule contains a mechanism for investigations and informal complaint resolution as well as remedies for violations, including the payment of back wages and debarment as well as an anti-retaliation provision to protect whistle blowers or complainants.

President issues order boosting minimum wage on new federal contracts

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President Obama issued an executive order Wednesday raising the minimum wage for workers under federal contracts to $10.10 per hour, starting next year.

The move fulfills a pledge Obama made in his State of the Union address last month to take action on his own to raise wages for lower-paid workers on federal projects and at government facilities.

“There are hundreds of thousands of people working under contracts with the federal government to provide services or construction who are currently making less than $10.10 an hour,” the White House said in a statement. “Some examples of the hardworking people who would see their wages go up under this executive order include nursing assistants providing care to our veterans at nursing homes, concessions workers in national parks, people serving food to our troops, and individuals with disabilities working to maintain the grounds on military bases.”

Before signing the order at the White House, Obama said, “right now, there’s a dishwasher at Randolph Air Force Base in Texas making $7.76 an hour — $7.76 an hour. There’s a fast-food worker at Andrews [Air Force Base], right down the street, making $8.91 an hour.  There’s a laundry worker at Camp Dodge in Iowa making $9.03 an hour.  Once I sign this order, starting next year, as their contracts come up, each of them and many of their fellow coworkers are going to get a raise.”

Keep reading this article at: http://www.govexec.com/contracting/2014/02/obama-issues-order-boosting-minimum-wage-contractors/78725/

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