The U.S. Department of Labor has updated its 2016 minimum wage poster to reflect new requirements imposed by the February 12, 2014, Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. The E.O. requires federal contractors to pay workers performing work on or in connection with covered federal contracts at least $10.10 per hour beginning January 1, 2015, and at least $10.15 per hour beginning January 1, 2016. The amount may be adjusted annually by an amount determined by the Secretary of Labor in a manner prescribed by the E.O. In 2016, covered tipped employees performing work on or in connection with covered contracts generally must be paid a cash wage of at least $5.85 per hour.
Articles Discussing The Minimum Wage Under The FLSA.
State Minimum Wage Increases Effective 2016
State and local legislatures continue to be busy with minimum wage legislation. As in past years, employers with multi-state operations must remain abreast of these changes. Many state laws provide for annual increases based on the U.S. Consumer Price Index and inflation. Except as noted below, higher state minimum wages are effective January 1, 2016. Because hospitality and similar employers also need to be aware of changes to the permissible tip credit that affect the minimum wage they must pay to customarily tipped employees, such increases also appear below.
Minimum Wages, Maximum Challenges in 2016 (2017, 2018 . . .)
Although the state-level minimum wage changes in 2015 have been tame compared to the significant changes in 2014,1 employers should be aware of a number of minimum wage legislative developments on the federal, state, and local levels this year. The U.S. Department of Labor has proposed significant increases to the minimum salary that must be paid to executive, administrative, and professional employees for them to be exempt from federal minimum wage and overtime requirements. Proponents of increased minimum wages have succeeded in having more cities and counties enact local minimum wage laws and raise minimum wage rates where rates have remained unchanged for years.
‘Fight for $15’ Walk-Outs and Protests Continue; Are You Prepared for November 10?
Continuing its three-year campaign, “Fight for $15” on November 4, 2015, announced plans for worker strikes and protests at fast food restaurants in 270 U.S. cities on November 10. The protests, timed to occur one year prior to the 2016 presidential election, is calculated to send a message to voters and candidates. Protests will culminate with a march on the November 10 Republican presidential debate in Milwaukee.
Restaurant Industry Alert: Wage Board Proposal – Fast Food Workers’ Minimum Wage May Rise to $15 in New York City by 2018
Executive Summary: On July 22, 2015, the New York State Department of Labor’s (NYSDOL) Wage Board voted to recommend a 171 percent increase in the minimum wage for fast food workers in New York City (NYC), from the current hourly rate of $8.75 to $15.00 by 2018. If the Wage Board’s recommendation becomes law (it would go into effect December 31, 2015 if approved by Commissioner of Labor Musolino), the minimum wage for fast food workers would first jump to $10.50 by year’s end, increasing $1.50 annually thereafter until reaching $15 per hour by July 1, 2021, in all of New York State. The Department of Labor’s press release indicates this decision may be made as early as Monday, July 27, 2015.
Restaurant Industry Alert: “Fight for $15” Planned for Tax Day
Executive Summary: In the latest move in their two-year campaign to raise the minimum wage to $15 per hour, fast-food workers have announced plans for a major one-day walkout on April 15, 2015 – Tax Day for U.S. employers. Events are planned in approximately 200 U.S. cities as well as at least 40 other countries. In addition to fast-food workers, organizers claim the April 15 Fight for $15 will include workers from other industries including retail, child care, and airport workers as well as adjunct college professors. The movement has been spearheaded by the Service Employees International Union and is supported by several community action groups. With thousands of fast-food workers in the U.S. expected to take part in the one-day strike, employers in the fast food industry would be wise to make sure they are prepared to respond appropriately to these efforts.
Hints About New FLSA Regulations Begin to Emerge: Minimum Salary May Double
Last spring, I made some predictions about what the new FLSA regulations would likely include when they were finally released. The regulations were delayed, but what we expect hasn’t changed, as I explained in November. On Twitter this past Friday (and you should be following @WageHourInsight, if you aren’t already), I highlighted an article that gives employers the first glimpse at what the Obama administration has planned.
The Minimum Wage in 2015: Looking Ahead to State Increases, Other Changes
With the election season behind us and 2015 fast approaching, employers need to start looking ahead to the new year when, traditionally, a host of new laws take effect. As we discussed after the election, 2014 was a busy year for wage and hour laws, and 2015 will be no different. Four states—Alaska, Arkansas, Nebraska, and South Dakota—voted to increase their minimum wages beginning as early as January 1, 2015. Those are not the only states that will see changes to the minimum wage in 2015, though.
The Future of the Minimum Wage – 2015 and Beyond
2014 has been “The Year of the Minimum Wage.” Protests throughout the country, with workers calling for increased wages, drew significant media attention. President Obama and Democrats in both legislative chambers advocated for increasing the minimum wage under the federal Fair Labor Standards Act (FLSA) – which was last raised in July 2009 – from $7.25 to $10.10 in increments over time. Due to the gridlock in Washington, legislative efforts failed, though the president exercised his executive authority to increase the minimum wage for federal contractors. In the absence of federal action, state legislators acted. Roughly 20 percent of state-level jurisdictions passed minimum wage laws in 2014. Unlike prior legislative actions, which resulted in a single increase, each minimum wage bill enacted in 2014 called for multiple increases, with some also requiring subsequent annual increases. Moreover, a handful of states put the question of whether to increase the state minimum wage before voters in the November 4, 2014 general election.
Department of Labor Publishes Final Rule to Raise Minimum Wage for Certain Federal Contractors and Subcontractors
Executive Summary: The U.S. Department of Labor issued final regulations on October 1, 2014 to implement Executive Order 13658, Establishing a Minimum Wage for Contractors. President Obama signed the Executive Order on February 12, 2014. The Executive Order raises the hourly minimum wage that covered contractors pay to workers performing work on covered federal contracts to $10.10 per hour, effective January 1, 2015. Beginning January 1, 2016 and annually thereafter, the Secretary of Labor will determine the amount of the minimum wage on covered contracts. The Executive Order applies only to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after January 1, 2015, or to contracts that are awarded outside the solicitation process on or after January 1, 2015. Below are highlights of the final rule.
Final Regulations Implementing Minimum Wage Increases on Federal Contractors
On October 1, 2014, the Department of Labor issued final regulations implementing Executive Order 13658 that raises the minimum wage for workers and tipped employees of federal contractors. The new minimum wages, which will be set at $10.10 for workers and $4.90 for tipped employees, will apply to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after January 1, 2015, or to contracts that are awarded outside the solicitation process on or after January 1, 2015. Annual cost of living increases will begin on January 1, 2016.
DOL Issues Final Contractor Minimum Wage Rule
The Department of Labor has issued its final rule implementing Executive Order 13658 (E.O.), which establishes a minimum wage of $10.10 per hour for federal construction and service contractor employees.
Department of Labor Sends Final $10.10 Minimum Wage Rule to OMB for Approval
Back in February, we told you about President Obama’s Executive Order 13658 increasing the minimum wage for federal contractor employees. Late last week, the Department of Labor’s Wage & Hour Division (WHD) submitted its Final Rule implementing EO 13658 to the White House Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA).
Department of Labor Publishes Notice of Proposed Rulemaking to Implement Executive Order 13658
Executive Summary: On February 12, 2014, President Obama signed Executive Order 13658 raising the minimum wage for the employees of some federal contractors and subcontractors to $10.10 per hour, effective January 1, 2015. On June 17, 2014, the U.S. Department of Labor published a Notice of Proposed Rulemaking (NPRM) and proposed regulations in the Federal Register related to the Executive Order. The Executive Order directs the Secretary of Labor to issue regulations on or before October 1, 2014. Comments to the Notice of Proposed Rulemaking must be received on or before July 17, 2014.
New Proposed Regulations Implementing Minimum Wage Increases on Federal Contractors
On June 18, 2014, the Department of Labor issued proposed regulations to implement President Obama’s Executive Order1 raising the minimum wage to $10.10 per hour for many workers of federal contractors, and to $4.90 per hour for tipped employees of federal contractors. Annual cost of living increases would begin in 2016. The Executive Order applies to new or renewed contracts entered into after December 31, 2014. It relies upon existing definitions, procedures, remedies, and enforcement processes under the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), and the Davis-Bacon Act (DBA) to implement and enforce the Executive Order.