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President Obama Increases Minimum Wage for Employees of Federal Contractors

On February 12, 2014, President Obama signed an executive order calling for an increase in the minimum wage for all work done pursuant to a contract with the U.S. government. Effective January 1, 2015, all employees performing work pursuant to a federal contract or “contract-like instrument” must receive no less than $10.10 per hour. The order also allows the Secretary of Labor to increase the amount one year after the order takes effect, provided that he publishes the new rate no fewer than 90 days before the effective date.

The exact scope of coverage and certain definitions are not included in the order itself. However, the order requires that the Secretary of Labor promulgate implementing regulations, which are likely to provide some clarification, no later than October 1, 2014.