Beginning January 1, 2019, the minimum wage for workers performing work on or in connection with covered federal contracts will rise from $10.35 to $10.60.  Covered tipped employees must be paid a minimum wage of $7.40, an increase from the current minimum of $7.25.

The increase is pursuant to Executive Order 13658, signed by President Barack Obama in 2014, which established annual adjustments in the minimum wage to rise with inflation, as determined by the Secretary of Labor.

The Department of Labor’s Wage and Hour Division published a notice announcing the increase in the Federal Register on September 4, less than a week after President Donald Trump canceled pay increases federal civilian employees were scheduled to receive January 1, 2019.

Hawaii employers should remain mindful that Hawaii’s minimum wage is currently $10.10 per hour, and $9.35 for employers using tip credit.  For more information on Hawaii’s minimum wage, please see this DLIR Notice.