13 June 2014

• USDOL Issues Proposed Rulemaking To Implement Executive Order 13658, Establishing A Minimum Wage For Contractors


On February 12, 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Contractors,” to raise the minimum wage to $10.10 for all workers on Federal construction and service contracts.

The NPRM defines key terms used in the Executive Order, including contracts, contract-like instruments, and concessions contracts. The NPRM makes clear that the Executive Order minimum wage requirement applies to all contracts for construction covered by the Davis-Bacon Act; contracts for services covered by the Service Contract Act; concessions contracts, such as contracts to furnish food, lodging, automobile fuel, souvenirs, newspaper stands, and/or recreational equipment on Federal property; and contracts to provide services, such as child care or dry cleaning, in Federal buildings for Federal employees or the general public.

Executive Order 13658 applies to new contracts and replacements for expiring contracts with the Federal Government that result from solicitations issued on or after January 1, 2015 or to contracts that are awarded outside the solicitation process on or after January 1, 2015.

Executive Order 13658 applies to four major categories of contractual agreements:

(1) procurement contracts for construction covered by the Davis-Bacon Act (DBA);

(2) service contracts covered by the Service Contract Act (SCA);

(3) concessions contracts, including any concessions contract excluded from the SCA by the Department of Labor’s regulations at 29 CFR 4.133(b); and

(4) contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.

See the complete report at this link: USDOL-WHD


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