After announcing plans to do so during his State of the Union address, President Obama has signed an Executive Order that increases the hourly minimum wage to $10.10 for covered employees of federal contractors and subcontractors working under new or renegotiated contracts in 2015.  The President's measure requires that, effective January 1, 2015, new or renegotiated contracts include a clause setting the new minimum wage for employees working under the contract. The minimum wage will also increase for tipped and disabled workers who are currently paid less while working under certain certificate programs.  The Order further provides for annual minimum wage increases that track inflation after 2015.

To the extent that a state prevailing wage law or municipal ordinance sets a higher minimum wage than that provided by the Executive Order, however, covered employers will be expected to comply with the state or municipal requirement instead.

The Secretary of Labor is charged with issuing implementing regulations by October 1.