WASHINGTON, D.C. (WTEN) – On Wednesday, the Department of Labor announced the increase of the minimum wage rate from $10.95 to $11.25 per hour for federal contract workers beginning January 1, 2022.
The Executive Order (FR 2021-19995) “Establishing a Minimum Wage for Federal Contractors,” is generally paid to workers performing work on or in connection with covered federal contracts, establishing a minimum wage rate for certain federal contractors that is adjusted annually based on inflation.
Additionally, effective Jan. 1, 2022, tipped employees in connection with covered contracts generally must be paid a minimum cash wage of $7.90 per hour.
Federal covered contracts entered into on or after January 30, 2022, or that are renewed or extended will be generally subject to a higher $15.00 minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors.
Further information related to the Executive Orders and/or these wage rates may be directed to the Government Contracts Division at (202) 693-0064.