Federal Employment Law Update-September 2017

Federal Contractors Wage Rates to Increase in 2018

On September 14, 2017, the U.S. Department of Labor (DOL) Wage and Hour Division announced the new minimum wage rates for federal contractors beginning January 1, 2018 will be as follows:

  • $10.35.
  • $7.25 for tipped employees.

The increases are required by an executive order mandating that the DOL raise the hourly minimum wage paid by certain federal contractors every year based on inflation. The executive order also specifies that the minimum cash wage for tipped workers must increase by 95 cents per year until it reaches 70 percent of the minimum wage paid to other hourly workers under the executive order.

Read the Notice