Executive Order Raises Minimum Wage for Government Contractor Employees


On February 12, 2014, President Barack Obama signed an Executive Order establishing a new minimum wage for certain government contractors. Acting pursuant to the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., President Obama signed the Executive Order to “promote economy and efficiency in procurement by contracting with sources who adequately compensate their workers.” The Executive Order reads that, “Raising the pay of low-wage workers increases their morale and the productivity and quality of their work, lowers turnover and its accompanying costs, and reduces supervisory costs. These savings and quality improvements will lead to improved economy and efficiency in Government procurement.”

Specifically, the Executive Order raises wages paid by federal contractors with service and construction contracts to $10.10 per hour. The Executive Order also includes subcontractors to federal contractors, specifically stating that the minimum wage requirements shall be flowed-down to all lower tier subcontracts.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

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.

© King & Spalding | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.