On February 12, 2014, President Obama signed an Executive Order raising the minimum hourly wage rate paid on certain federal contracts to $10.10, beginning January 1, 2015. Further, the Executive Order raises the minimum hourly wage for tipped worked on certain federal contracts to $4.90, beginning January 1, 2015. The Secretary of Labor is directed to issue regulations by October 1, 2014 that implement these new provisions and incorporate existing definitions, procedures, remedies and enforcement processes of the Fair Labor Standards Act ("FLSA"), the Service Contract Act ("SCA"), and the Davis-Bacon Act ("DBA"). The full text of the Executive Order is available here.
Please stay tuned for additional developments on the Executive Order and the implementing regulations.
Update: OFCCP sent over 2,100 CSALs to the individual establishments of 856 separate federal contractors. We also understand that OFCCP will limit the number of audits for each federal contractor to 35. Be sure to watch out for the CSALs and keep in contact with your individual establishments to ensure that if they do receive a CSAL, it is directed to the appropriate internal personnel.
We have received word that the next round of CSALs is going to be sent out next week. The OFCCP had planned to send them earlier, but was delayed due to the government shutdown in October 2013. Stay tuned for more updates.