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New minimum wage for Federal government contractors goes into effect on January 1, 2016

The U.S. Secretary of Labor has announced that the new minimum wage applicable to most employees of Federal government contractors is $10.15. The new minimum wage rate becomes effective on January 1, 2016.

On February 12, 2014, President Barack Obama signed Executive Order 13658 that established a minimum wage for employees of Federal government contractors as $10.10. This went into effect on January 1, 2015. Under the executive order, the U.S. Secretary of Labor is required to annually determine the minimum wage applicable to Federal contractors by using a method set out in the executive order. The method is based on the consumer price index.


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