President Biden's Aug. 27 executive order required certain federal contractors to pay workers at least $15 per hour and increased the minimum wage for tipped federal contractors to $10.50 per hour.

The new rates go into effect Jan. 30, and the U.S. Department of Labor's Wage and Hour Division has released a field assistance bulletin that clarifies the requirements of the new standard.

What contracts are covered by the order?

The bulletin lays out four categories of contracts covered by the executive order:

1. Procurement contracts for construction covered by the Davis-Bacon and Related Acts
2. Service contracts covered by the Service Contract Act
3. Concessions contracts
4. Contracts entered with the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents or the general public

Where does the order apply?

The bulletin also defines the geographic scope of the order's application, which includes:

• All 50 states
• American Samoa
• Commonwealth of the Northern Mariana Islands
• District of Columbia
• Guam
• Johnston Island
• Lands defined in the Outer Continental Shelf Lands Act
• Puerto Rico
• Virgin Islands
• Wake Island

What else does the bulletin explain that employers need to know?

Additionally, the bulletin provides information on worker notice requirements, subcontractor requirements, record-keeping requirements and anti-retaliation provisions and remedies.

The new standard under the executive order has no direct...

Read Full Story: https://www.mondaq.com/unitedstates/employee-benefits-compensation/1152092/ne...