A Back-Door Increase in the Federal Minimum Wage

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The cost of doing business with the federal government has just gone up. Fulfilling a promise from his State of the Union Address, President Obama signed an Executive Order on February 12, 2014 that will raise the minimum wage to $10.10 an hour. The increased rate will go into effect on January 1, 2015 and will be applicable to all new federal contracts entered into after that time.

The Order also provides for annual separate increases for tipped employees.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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