US Department of Labor announces update to minimum wage

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WASHINGTON D.C. (WWLP) – The U.S. Department of Labor Wednesday announced an annual update to Executive Order 13658, which covers the minimum wage for contracted federal employees.

The order was put into effect in 2014 when now Former President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Federal Contractors,” which established a minimum wage rate for certain federal contractors. The order also calls for that minimum wage to be adjusted annually to cover the rising costs related to inflation.

The annual update by the U.S. Department of Labor announces that this minimum wage will be increased from $10.95 to $11.25 per hour effective Jan.1, 2022 for hourly employees and  a minimum cash wage of $7.90 per hour for tipped employees who work on or in connection with covered contracts.

This is in effect from January 1, 2022 to Jan 30, 2022 when the minimum wage for contracted federal employees rises to $15/hour per Executive Order 14026, “Increasing the Minimum Wage for Federal Contractors,” signed by President Biden in April of this year.

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