Increase in Minimum Wage for Federal Contractors Under New Contracts

While the general federal minimum wage remains unchanged at $7.25 per hour, as announced earlier this year, the minimum wage for federal contractors will increase to $10.10 per hour as of January 1, 2015. This increase is pursuant to an Executive Order signed by President Obama and applies to all employers covered by the Service Contract Act or any employer who handles concessions and services in connection with Federal property or lands. The initial scope of this Order, however, will be limited; it will only apply to employees employed under new and replacement federal contracts and who would otherwise make under $10.10 an hour. Contracts that are in place prior to January 1, 2015 are not affected.

As a reminder, in addition to the increase in the minimum wage for federal contractors, 20 states have statewide minimum wage increases going into effect on January 1, 2015. The states that will see increases in the new year are: Arizona, Arkansas, Colorado, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, and West Virginia.



  1. “…government spent a record $14.7 bioliln on Unemployment Insurance Benefits as of December 30, a 24% jump sequentially from the $11.8 bioliln in November. Yet the DOL has disclosed a mere 1.7% increase in those to whom insurance benefits are paid: from 9.4 million to just under 9.6 million. To put the $14.7 bioliln number in perspective, in December the Federal Government paid a total of $14 bioliln ($700 million less) in Federal Salaries!And some more perspective: in calendar 2009 the government has paid $140 bioliln in Unemployment Insurance Benefits. This is yet another economic stimulus that nobody in the administration discusses, yet which undoubtedly has the biggest impact on the economy, as all those millions unemployed can moderate their pain courtesy of a passable weekly check from the government …

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