by Rachael E. Luzietti
The comment period for the proposed rule to implement President Barack Obama’s Executive Order to raise the minimum wage for employees working on government contracts ends July 28. Those interested in having their voices heard should submit comments at www.regulations.gov.
In February, Obama issued Executive Order 13658, which mandates a minimum hourly wage of $10.10 to be paid by employers contracting with the federal government. The U.S. Department of Labor (DOL) issued a notice of proposed rulemaking on June 17 to implement the order.
The proposed rule requires a minimum wage of $10.10 for all employees working on federal government contracts and subcontracts effective January 1, 2015. It also contains a formula for annual increases in the minimum wage rate based on the rate of inflation.
Additionally, the proposal increases the minimum wage of tipped employees to $4.90 and provides a formula for annual increases until it reaches 70 percent of the minimum wage of nontipped employees. To ensure government contractors are adhering to the new requirements, the proposed rule also includes new record-keeping requirements.
The DOL will issue its final rule by October 1, 2014, and the rule will apply to contracts, including renewals, awarded on or after January 1, 2015.
Rachael E. Luzietti is an attorney with DiMuroGinsberg PC in Alexandria, Virginia. She can be reached at rluzietti@dimuro.com.
It is amazing to me that so many people don’t understand or are not able to figure out, the cost of living issues. If we keep raising wages, which directly effects the cost of everything you purchase, right down to the cost of a toothpick, then YOU will keep going backwards yourself.
Certain jobs are not meant to be careers, ie; McDonalds food server. These should be high school 1st time jobs and/or part time workers and/or retired peoples work.
If you want a career and want to make $30,000.00 plus a year then go get an education or start your own business. This is American where dreams are realized.
Stop raising my cost of living feeling sorry for people who want to make a career out of serving food at McDonalds.
Thank you,