Affects most new contracts, renewals, extensions of existing contracts
WASHINGTON — The U.S. Department of Labor today announced a final rule that implements Executive Order 14026 to increase the hourly minimum wage for employees on federal contracts beginning Jan. 30, 2022. President Biden signed the order on April 27, 2021.
The rule applies in all 50 states, the District of Columbia, and specified U.S. territories, and does the following:
“The workers helped by Executive Order 14026 and today’s final rule do essential work on our nation’s behalf. They build and repair the federal infrastructure, clean and maintain our national parks, monuments, and other federal facilities, care for our veterans, and ensure federal workers and military service members are provided with safe and nutritious food,” said U.S. Secretary of Labor Marty Walsh. “Implementing this Executive Order improves the economic security of these workers and their families, many of whom are women and people of color.”
Executive Order 14026 applies to new contracts and renewals and extensions of existing contracts beginning Jan. 30, 2022.
“In addition to promoting efficiency in federal contracting, the implementation of Executive Order 14026 has other benefits,” said Wage and Hour Division Acting Administrator Jessica Looman. “The final rule adds value for taxpayers by boosting worker productivity and reducing employee turnover and absenteeism. It also allows federal contractors to retain top talent, and reduce recruiting and training costs.”
Learn more about protections for federal contractors or more about the Wage and Hour Division. You may also call toll free at 866-4US-WAGE to speak directly and confidentially to a trained Wage and Hour Division professional. The division protects workers regardless of immigration status, and can communicate with workers in more than 200 languages.
Last week, while RCPA held its Annual Conference at the Hershey Lodge, our colleagues at the Pennsylvania Chamber of Business and Industry (PA Chamber) informed us that the Federal Department of Labor submitted its final overtime rule. The PA Chamber stated the final overtime rule was published in the Friday, September 27 edition of the Federal Register. The highlights of the final rule are as follows:
According to the PA Chamber, Pennsylvania employers generally accept the final overtime rule as a reasonable update to overtime regulations and employers are unlikely to challenge the final rule. Additionally, there have not been any updates on how the Pennsylvania Department of Labor and Industry will proceed with their overtime proposal.
Thanks again to our friends at the PA Chamber for keeping health and human service providers in the loop on this important issue. Please contact Jack Phillips, RCPA Director of Government Affairs, with questions.
RCPA submitted comments to the Department of Labor; Division of Regulations, Legislation, and Interpretation; Wage and Hour Division, on the Proposed Rule Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees published in the Federal Register on July 6, 2015.