Effective January 1, 2018, the minimum wage for federal contractors working on or in connection with contracts covered by Executive Order 13658 will be $10.35/ hour.  The announcement was made via posting in the federal register on September 15, 2017.  The wage rate for tipped employees will also increase to $7.25/hour.

This is the third increase to the minimum wage under the Executive Order which first went into effect January 1, 2015.  At that time the minimum wage was set at $10.10/hour.  In 2016, the rate increased to $10.15/hour.  The current rate, which went into effective January 1, 2017, is $10.20/hour.  Pursuant to the terms of the Executive Order, the U.S. Secretary of Labor reviews the rate on an annual basis to determine whether to increase the wage rate.

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Photo of Laura A. Mitchell Laura A. Mitchell

Laura A. Mitchell is a Principal in the Denver, Colorado, office of Jackson Lewis P.C. She is a member of the firm’s Affirmative Action and OFCCP Defense practice group as well as the firm’s Pay Equity Resource Group. She is also on the leadership team for the firm’s Government Contractor Industry Group.

Her practice is focused on representing government and non-government contractors in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. Ms. Mitchell personally oversees the development of hundreds of AAPs each year and is intimately involved in the defense of numerous OFCCP audits. She also spends significant time counseling companies in connection with conducting pay equity analyses as well as government contractor employment obligations.

Ms. Mitchell is the editor and a principal contributor of The Affirmative Action Law Advisor blog and frequently presents on pay equity, affirmative action compliance, OFCCP enforcement trends, and government contractor obligations.

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