Federal contractors have to pay higher minimum wage in 2018

On September 15, 2017, the Wage and Hour Division of the U.S. Department of Labor announced the new minimum wage rate that government contractors will have to pay in 2018: $10.35 an hour. This is an increase from the current rate of $10.20 an hour.

The announcement also provided that the minimum wage for tipped employees working on government contracts would increase to $7.25 an hour, up from the current rate of $6.80.

These new rates will take effect on January 1, 2018.

These new rates are based on increases in the consumer price index for urban wage earners and clerical workers (CPI-W).

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© 2017