Starting January 1, 2019, the Department of Labor has announced that the hourly wage floor will be raised from $10.35 to $10.60 for federal contractor employees.  Additionally, tipped employees generally must be paid a minimum cash wage of $7.40 per hour.

The Executive Order (E.O.13658, Establishing a Minimum Wage for Contractors) was signed in 2014, to create annual minimum wage hikes for federal contractor employees pegged to inflation. The Executive Order also permits the Secretary of Labor to adjust wages for contractor employees.  Initially workers were required to be paid a minimum of $10.10 per hour starting January 1, 2015, with an increase each year to keep above inflation.

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