The U.S. Department of Labor has published the 2017 inflation adjusted wage rates for employees performing work on or in connection with covered contracts. Employers affected by the increases will need to adjust employee wage rates as appropriate.  

Welcome to the Compliance Center

Federal Contractor Minimum Wage Increases for 2017

Dec 19, 2016

Background on the Final Rule:
As required by EO 13658, the U.S. Department of Labor has published the 2017 inflation adjusted wage rates for employees performing work on or in connection with covered contracts.

The Federal minimum wage for contractors will increase to $10.20 per hour (from $10.15 per hour). The 2017 minimum cash wage for tipped workers will increase to $6.80 per hour (from $5.85 per hour).

Contractors are required to notify all workers performing on or in connection with a covered contract of the applicable minimum wage rate under the Executive Order. Contractors with employees covered by the Fair Labor Standards Act who are performing on or in connection with a covered contract may satisfy the notice requirement by displaying the revised “Worker Rights under Executive Order 13658” poster in a prominent or accessible place at the worksite.

Impact on Employers:
Employers affected by the increases will need to adjust employee wage rates as appropriate.

For more information, please see:
Text of Executive Order 13658 http://www.gpo.gov/fdsys/pkg/FR-2014-02-20/pdf/2014-03805.pdf

The Notice by the Labor Department is available in the Federal Register https://www.federalregister.gov/documents/2016/09/20/2016-22515/establishing-a-minimum-wage-for-contractors-notice-of-rate-change-in-effect-as-of-january-1-2017