|Final Rule Issued on Contractor Minimum Wage (DOL)|
The Department of Labor (DOL) issued a final rule on the minimum wage requirements for federal contractors as part of the President’s Executive Order earlier this year. As you may recall, the Order increased the minimum wage for workers on federal contracts to $10.10 per hour. Details on which contracts are covered are included in the fact sheet (link below) from DOL. In addition, DOL is working on additional regulations regarding pay transparency and reporting on employee pay. A summary on each of these is below. As always, please reach out to WIPP if you have comments or concerns with upcoming regulation. Questions can also be addressed on our upcoming Committee call.
1) Final Rule Issued on Contractor Minimum Wage
On February 12, 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Contractors,” to raise the minimum wage to $10.10 for all workers on Federal construction and service contracts. The Executive Order directed the Department of Labor to issue regulations to implement the new Federal contractor minimum wage. The final version of those rules was released today. Key provisions of the final rule include:
Executive Order 13658 applies to new contracts and replacements for expiring contracts with the Federal Government that result from solicitations issued on or after January 1, 2015 or to contracts that are awarded outside the solicitation process on or after January 1, 2015. For more information, please visit the Wage and Hour Division’s Executive Order 13658 web page at http://www.dol.gov/whd/flsa/eo13658/
2) DOL Proposes Rule to Encourage Pay Transparency for Government Contractors
On September 17, the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor released a proposed rule that would prohibit federal contractors from maintaining pay secrecy policies. The rule would require most contractors and subcontractors to change the nondiscrimination provisions in their contracts to state that they will not discharge or discriminate against their employees and job applicants for disclosing or inquiring about their pay. Contractors would also be required to disseminate this new provision to employees and job applicants. Comments are due on December 16, 2014.
3) DOL to Require Government Contractors to Report on Employee Pay
On August 8, 2014, the Office of Federal Contract Compliance Programs (OFCCP) of the Department of Labor released a proposed rule to require certain contractors to submit reports on employee compensation. The rule requires employers who file Employer Information Reports (EEO-1 Report), have more than 100 employees, and a contract, subcontract or purchase order amounting to $50,000 or more to submit a new Equal Pay report which includes summary data on employee compensation by sex, race, ethnicity, specified job categories, and other relevant data points such as hours worked, and the number of employees. Comments are due by November 6, 2014.