Associated Equipment Distributors

Proposal on Federal Contractor Minimum Wage Moves Forward

On June 17, the U.S. Department of Labor Wage and Hour Division issued a proposed rule to implement Executive Order 13658, which would establish a minimum wage for federal contractors. Beginning January 1, 2015, the executive order will require the hourly minimum wage paid by contractors to workers performing on covered federal contracts to be $10.10 per hour. Beginning Jan. 1, 2016, the executive order allows the minimum wage to be determined annually by the Secretary of Labor. Comments on the proposal are due July 17, 2014.

In addition, the White House announced June 16 that President Obama will sign an executive order that will prohibit federal contractors from discriminating on the basis of sexual orientation or gender. There is no timeline on when the executive order will be issued.

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