On February 12, 2014, President Obama signed Executive Order 13658, Establishing a Minimum Wage for Contractors. The Executive Order seeks to increase efficiency and cost savings in the work performed by parties that contract with the Federal Government by raising the hourly minimum wage paid by those contractors to workers performing on covered Federal contracts to: (i) $10.10 per hour, beginning January 1, 2015; and (ii) beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor (the Secretary) in accordance with the Order.
The Executive Order directs the Department of Labor to issue regulations to implement the requirements of the Order by October 1, 2014. This Notice of Proposed Rulemaking (NPRM) therefore establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 13658.
As required by the Executive Order and to the extent practicable, the proposed rule incorporates existing definitions, procedures, remedies, and enforcement processes under the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), and the Davis-Bacon Act (DBA).
The NPRM published on June 17, 2014 (79 FR 34568) in the Federal Register and invited interested parties to submit written comments on the proposed rule at www.regulations.gov.
On July 8, 2014, the U.S. Department of Laborís Wage and Hour Division published a notice to extend the comment period (See 79 FR 38478) to July 28, 2014. The comment period is now closed. Only comments received during the comment period identified in the Federal Register published version of the Notice of Proposed Rulemaking are considered part of the rulemaking record, and may be viewed at www.regulations.gov.