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Minimum Wage Raised for Federal Contract Workers By Executive Order

President Obama signed an Executive Order on February 12th instituting a new policy to raise the minimum wage for workers under federal contracts for services or construction to $10.10 per hour. The order becomes effective January 1, 2015 and will apply only to new contracts and subcontracts signed after its effective date that provide the federal government with concessions, services, and construction.

The U.S. Department of Labor is required to issue regulations by October 1, 2014, to the Minimum-Wage_Constructionextent permitted by law and consistent with the requirements of the Federal Property and Administrative Services Act, to implement the requirements of this order.

What does this mean for you if you are a services or construction contractor with federal contracts?

You will have some time to review your contracts to determine whether you are covered by this order and prepare and price bids accordingly before the order goes into effect January 1, 2015. When in doubt seek counsel to determine what proactive steps can be taken in the event your company is subject to the Executive Order.

Read the official White House press release by clicking here.

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