Minimum Wage for Covered Government (SCA) Contractors Increased to $10.60

Blog
January 24, 2019

Effective January 1, 2019, the minimum wage for certain federal contractors increased from $10.35 to $10.60 per hour, in accordance with Executive Order 13658. The increased wage rate generally must be paid to workers performing on or in connection with covered federal contracts whose wages are governed by the Fair Labor Standards Act (FLSA), the Service Contract Labor Standards (SCLS, formerly SCA), or the Davis-Bacon Act (DBA).

Covered contracts include:

  • procurement contracts for construction covered by the DBA
  • service contracts covered by the SCLS
  • concessions contracts, including any concessions contract excluded from the SCLS by the Department of Labor’s regulations at 29 CFR 4.133(b)
  • contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public

To ensure compliance, contractors must pay the impacted employees the higher of 1) the minimum wage rate $10.60, or 2) the minimum wage rate for the employee’s specific SCLS occupation on the wage determination incorporated into the SCLS-covered contract or other wages required by the contract. The government contract minimum wage rate will continue to be evaluated and adjusted with inflation-based increases on an annual basis.

For more information, see the Department of Labor notice published in the Federal Register. For questions regarding Executive Order 13658, please contact Barbara Connell at bconnell@aronsonllc.com or 240.364.2657.