By Eric W. Tiritilli.
The Department of Labor recently issued a final rule raising the minimum wage for employees working on new covered federal contracts to $10.10 beginning on January 1, 2015. A “new” contract is one that results from a solicitation issued on or after January 1, 2015, or that is awarded outside of the solicitation process after January 1, 2015. On January 1, 2016, and annually after that, the minimum wage will be increased in an amount determined by the Secretary of Labor.
Violation of the new Department of Labor rules on minimum wage for covered federal contractors can lead to serious penalties including the withholding of payments due to the contractor to pay wages due to employees and, potentially, debarment. The Department of Labor notes that the new minimum wage requirements will affect approximately 200,000 workers in the United States.
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