Beginning January 1, 2020, the minimum wage rate for workers performing work on or in connection with covered federal contracts will rise from $10.60 to $10.80 per hour.  Covered tipped employees performing work on or in connection with covered contracts must be paid a wage of at least $7.55 per hour – an increase from the current minimum of $7.40.

These increases are mandated by Executive Order 13658, Establishing a Minimum Wage for Contractors, which was signed by President Obama in February 2014.  The Executive Order raised the minimum wage at that time to $10.00 per hour effective January 1, 2015, and established a methodology for calculating annual increases thereafter, requiring the Department of Labor to provide notice of any increase at least 90 days before it takes effect.

The notice and updated E.O. 13658 Worker Rights poster are available here.

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.