Perez Announces Final Rule Raising Minimum Wage for Federal Contract Workers

The rule will raise the minimum wage to $10.10 per hour for covered workers.

U.S. Labor Secretary Thomas Perez announced his agency will publish a final rule that raises the minimum wage for workers on federal service and construction contracts to $10.10 per hour. The final rule implements Executive Order 13658, which was announced early by President Obama, and will benefit nearly 200,000 American workers.

"No one who works full time in America should have to raise their family in poverty, and if you serve meals to our troops for a living, then you shouldn't have to go on food stamps in order to serve a meal to your family at home," Secretary Perez said in a statement. "By raising the minimum wage for workers on federal contracts, we're rewarding a hard day's work with fair pay. This action will also benefit taxpayers. Boosting wages lowers turnover and increases morale and will lead to higher productivity."

The final rule provides guidance and sets standards for employers concerning what contracts are covered and which of their workers are covered. It also establishes obligations that contractors must fulfill to comply with minimum wage provisions of the executive order, including recordkeeping requirements. It provides guidance about where to find the required rate of pay for all workers, including tipped employees and workers with disabilities. Additionally, the rule establishes an enforcement process that should be familiar to most government contractors and will protect the right of workers to receive the new $10.10 minimum wage.

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