Annual Minimum Wage Increase for Federal Contractors

The U.S. Department of Labor Wage & Hour Division has released the new federal contractor minimum wage notice, which has a revision date of 1/19.

Under Executive Order 13658, the minimum wage for federal contractors will be adjusted annually every January 1 based on inflation.

What Employers and Employees Need to Know

Minimum Wage Rates for 2019

From January 1, 2019, through December 31, 2019, federal contractors must pay workers performing work on, or in connection with, covered contracts a minimum wage of at least $10.60 per hour.

In 2019, tipped employees covered under the law must be paid a cash wage of at least $7.40 per hour. Federal contractors are required to make up the difference in wages if a worker’s tips combined with the required cash wage don’t equal the hourly minimum wage.

Minimum Wage Exclusions & Enforcement

On the 2019 minimum wage notice, the description of workers who are excluded from receiving the federal contractor minimum wage has not changed. Among other workers, the law still does not apply to certain full-time students, learners, and apprentices who are working under sub-minimum wage certificates, or to certain workers who provide support in connection with covered contracts for less than 20 percent of their hours worked in a week.

The U.S. Department of Labor’s Wage & Hour Division (WHD) enforces Executive Order 13658. Employees may phone or visit the WHD to ask questions about their workplace rights and protections. All services provided by the WHD are still free and confidential.  

No Other Changes to Federal Contractor Poster

There are no updates at this time to the rest of the required notices on our Federal Contractor Poster:

  • Paid Sick Leave for Federal Contractors
  • Pay Transparency
  • National Labor Relations Act
  • Employee Rights (Davis-Bacon Act/DBRA)
  • Employee Rights (Government Contracts/SCA & PCA/Walsh-Healey)

Let Us Keep You in Compliance

In addition to our 1-Year Compliance Plan, which provides a year of free mandatory updates for state and federal posters, Poster Compliance Center also offers a  Federal Contractor 1-Year Plan. This plan provides free mandatory updates for the Federal Contractor Poster, no matter how many changes occur during the plan year. If you order both of these plans, you will never have to worry about keeping your business in compliance!