Beginning January 1, 2015, all workers who perform services under a federal contract or sub-contract must receive a minimum wage of $10.10 per hour. This increase in the minimum wage was implemented under an Executive Order signed by President Obama last month.
The Executive Order also provides that workers who receive tips must be guaranteed a minimum salary of $10.10 per hour when tips and employer pay are combined. It increases the minimum wage for employees with disabilities who may otherwise receive lower wages under the Fair Labor Standards Act because their disability impacts their productivity.
This change implicates all employers who have contracts with the federal government. If workers are being paid less hen $10.10 per hour, employers will have to review contracting and pay scales to comply with the new act.