President Raises Minimum Wage For Federal Contractors

Gordon Law Group

President Obama recently signed an Executive Order creating a new minimum wage for over two million Federal Contractors. The new minimum wage is $10.10 per hour and will take effect on January 1, 2015. In general, the Executive Order covers those who provide a “service” to the federal government, but it does not cover those providing goods. Although the new minimum wage will not apply to all Federal Contractors, it represents a significant increase from the current federal minimum wage of $7.25. Tipped employees that are covered by the Executive Order must be paid $4.90 per hour. If not enough is earned in tips to reach the minimum wage, then the employer has to increase their pay to meet the minimum wage. Many are seeing this as part of the President’s push to gradually raise the minimum wage to $10.10 across the board. Look out for further changes to the minimum wage at the Federal level.

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