Obama Issues Executive Order Establishing Minimum Wage for Contractors - State and Federal Communications

February 13, 2014  •  

Obama Issues Executive Order Establishing Minimum Wage for Contractors

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On February 12, President Barack Obama issued an executive order establishing a minimum wage for federal contractors.

Effective January 1, 2015, contractors and subcontractors for the federal government must pay employees a minimum of $10.10 an hour or $4.90 an hour for employees who are tipped. The wages will be annually adjusted according to the consumer price index.

The order applies only to new contracts starting in 2015.

 

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