U.S. DOL Releases Minimum Wage Notice for Federal Contractors

The federal contractor minimum wage notice reflecting wage rates for 2018 has just been released by the U.S. Department of Labor Wage and Hour Division. The notice reflects a revision date of 1/18.

The minimum wage for federal contractors is subject to an annual adjustment for inflation every January 1, under Executive Order 13658.

Ever since the Secretary of Labor announced the new wage rates back in September, we’ve been anxiously awaiting the updated notice so that we can get our Federal Contractor Poster out to clients as soon as possible.

What Employers Need to Know

New Minimum Wage Rates

Effective January 1, 2018, through December 31, 2018, the minimum wage for federal contractors will be $10.35 per hour. Tipped employees must be paid a cash wage of at least $7.25 per hour. The new rates are based on an annual adjustment for inflation.

As in previous years, if a worker’s tips combined with the required cash wage do not equal the hourly minimum wage paid by a contractor, the contractor is required to make up the difference.

Aside from updates to the wage rates, the minimum wage notice now states that the law requires employers to display the poster where employees can readily see it.

Other Federal Contractor Notices

Our Federal Contractor Poster also includes the following required notices, which have not been updated:

  • 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)

Worry-Free 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 12-month period. If you order both of these plans, you will never have to worry about being in compliance!