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.
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