On September 15, 2017, the Wage and Hour Division of the U.S. Department of Labor announced the new minimum wage rate that government contractors will have to pay in 2018: $10.35 an hour. This is an increase from the current rate of $10.20 an hour.
The announcement also provided that the minimum wage for tipped employees working on government contracts would increase to $7.25 an hour, up from the current rate of $6.80.
These new rates will take effect on January 1, 2018.
These new rates are based on increases in the consumer price index for urban wage earners and clerical workers (CPI-W).
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