Employment and Labor Law

Contact: Sara B. Rafal, Williams Mullen (North Carolina & Virginia, USA)

On Wednesday, February 12, 2014, President Obama signed an Executive Order that increases the minimum wage for employees of federal contractors from $7.25 to $10.10.  The Executive Order goes into effect on January 1, 2015 and only applies to government contracts awarded after January 1, 2015.

While the Executive Order will not affect employees of government contractors under wage determinations with prevailing wages higher than $10.10 per hour, it will likely raise the hourly rates for employees in rural areas where the prevailing wages are lower than $10.10 per hour.  The Executive Order potentially applies to employees who are not covered by wage determinations but provide services in support of the performance of a government contract or subcontract as well as employees working for employers with government supply contracts for rates lower than $10.10 per hour.

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