New Posting Requirements for Federal Contractors
This year, in addition to the posting requirements set forth in our August 26, 2021 blog referring to state and federal minimum wage, federal contractors have two additional posting changes. Those who are covered by Executive Order 13658 must pay employees the federal contractor minimum wage, which was adjusted to $11.25 per hour as of January 1, 2022. Employers covered by Executive Order 13658 must display updated posters showing the new 2022 rate, which can be found online.
A recent Executive Order 14026 governing certain federal contractors requires pay employees a minimum of $15.00 per hour as of January 30, 2022. It only applies to contracts entered into, renewed, or extended after that date.
Executive Order 14026 covers work performed “on or in connection with” covered contracts. The Executive Order minimum wage requirement applies to four major categories of contracts:
- Procurement contracts for construction covered by the Davis-Bacon Act (DBA)
- Service contracts covered by the Service Contract Act (SCA)
- Concessions contracts, including concessions contracts excluded from SCA coverage
- Contracts entered into with the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public
There are certain narrow exclusions from coverage under Executive Order 14026 and additional requirements for tipped workers performing on or in connection with covered contracts.
Federal contractors covered by Executive Order 14026 must provide proper notification of the applicable minimum wage.
- For service employees on contracts covered by the SCA and laborers and mechanics on contracts covered by the DBA, the contractor may meet the Executive Order notification requirement by posting, in a prominent and accessible place at the worksite (including online), the applicable wage determination (sam.gov/home).
- For workers performing work on or in connection with a covered contract whose wages are governed by the FLSA, the contractor may meet this requirement by posting, in a prominent and accessible place at the worksite (including online), the poster provided by the Department of Labor (DOL) as an Appendix to the Executive Order in the Federal Register. This poster is not currently on the DOL website, so please contact our office if you would like a copy.