In the flurry of activity surrounding President Biden’s Executive Order 14042 – Ensuring Adequate COVID Safety Protocols for Federal Contractors,  federal contractors are also awaiting approval of regulations to implement President Biden’s Executive Order  raising the minimum wage for some federal contractor employees to $15 per hour.

In the meantime, the provisions of former President Obama’s minimum wage order have resulted in an increase in the minimum wage from $10.95 to $11.25 for covered employees.  That rate will go into effect on January 1, 2022.

As a reminder, the federal contractor minimum wage applies only to workers and employees working “on or in connection with” a covered federal contract or subcontract.  An employee works “on” a covered contract when she performs the work called for by the contract.  Employees are considered to be working “in connection with” a covered contract if they are “performing work activities that are necessary to the performance of a covered contract but … are not directly engaged in performing the specific services called for by the contract itself.”

In addition, the minimum wage does not apply to employees working only “in connection with” a covered contract, where the employee works less than 20% of her time in any given workweek “in connection with” a covered contract.

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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…

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.

JD Supra Readers Choice Top Author 2018