Minimum Wage Rate Federal (sub) Contractors: $10.20

Jan.1, 2017: $10.20

per day: $81.60

per week: $408.00

per year: $21,216.00


(based on a 8 hours working day, 52 weeks per year)

Started: January 1, 2015, calculated annually based upon cost of living and rounded to the nearest multiple of $0.05.

Overtime Pay Federal Contractors

Overtime Pay: $15.30 per hour

Overtime pay is the cash compensation for the hours eligible employees work in excess of 40 hours in a workweek (a workweek = 7x24= 168 hours). The overtime pay rate is one andone-half (1.5) times the regular working hour rate of pay.

Tipped Workers

Cash wage: 
Jan. 1, 2017: $6.80

Maximum tip credit: 
Jan. 1, 2017: $3.40

Note: Cash wage rate will increase each succeeding first year by the lesser of 95 cents until it equals 70% of the regular minimum wage of $10.20.

For each subsequent year, the cash wage is 70% of the minimum wage rounded up to the nearest multiple of 5 cents.

Note: If a workers's tips on top of that don't add up to $10.20 an hour, the employer will be required to make up the difference.

Note:The cash wage or basic or direct wage rate is the minimum required employer contribution towards your hourly minimum wage. The "maximum tip credit" is the amount of tips you will need on top of your cash wage to make the full hourly minimum wage. If you do not receive sufficient tips in your workweek to achieve the minimum wage for all hours worked that week, your employer must make up the difference.

Note: find out about the law for tipped employees according to the Fair Labor Standard Act and/or read the Executive Order.

Who is Eligible?

The minimum wage applies only to a new contract or contract-like instrument, if:

- it is a procurement contract for services or construction, or it is a contract or contract-like instrument:

- for services covered by the Service Contract Act

- for concessions, including any concessions contract excluded by the Department of Labor Regulations

- entered into 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, and


The wages of those workers are governed by the:

- FLSA, only if the contracts or contract-like instruments that exceed the micro-purchase threshold, or

- the Service Contract Act of the Davis-Bacon Act, only if the contracts or contract-like instruments at the thresholds specified in those Acts.


Examples of eligible workers:

Concession workers in national parks

Nursing assistants caring for veterans

People who serve food to U.S. troops

People who maintain the grounds on military bases

People who do the laundry on military bases

People who staff the parking lot of a federal courthouse

Janitors at federal buildings and military bases

Food service workers at federal buildings and military bases


Not eligible:

This order shall not apply to grants; contracts and agreements with and grants to Indian Tribes under the Indian Self-Determination and Education Assistance Act; or any contracts or contract-like instruments expressly excluded by the regulations as mentioned above.