Effective January 1, 2016, many federal contractors are required to pay their employees a minimum wage of $10.15 per hour.  This requirement applies to:  (1) Contracts/replacement contracts that result from solicitations issued on or after January 1, 2015; (2) Modifications of existing contracts which have more than 6 months remaining on their term; and, (3) Service Contract Act and Davis Bacon Act Contracts.  The minimum wage requirements are the result of President Obama’s Executive Order 13658.

Importantly, the Executive Order also requires notification of employees.  The Department of Labor has issued a revised “EEOC is the Law” poster, which can be found here:  Poster

Finally, the minimum wage requirements must be flowed-down to subcontractors, which can be accomplished with the addition of the following language to the subcontract:  “Executive Order 13658 – Establishing a Minimum Wage for Contractors, and its implementing regulations, including the applicable contract clause, are incorporated by reference into this contract as if fully set forth in this contract. FAR Clause 52.222-55, Minimum Wages Under Executive Order 13658 (Dec 2014) (Executive Order 13658).”

Take some time to review your contracts and make sure you comply with Executive Order 13568.