12/15/2014 12:00 AM
Effective Date: December 15, 2014
This interim rule amends the FAR to. Amends the FAR to include procurement policy implementing Executive Order 13658, Establishing an Executive Order (EO) Minimum Wage for Contractors, dated February 12, 2014, and associated Department of Labor regulatory requirements at 29 CFR Part 10.
- FAR 22.1902 requires contractors to pay a minimum hourly wage rate of at least $10.10 per hour to workers performing on, or in connection with, contracts and subcontracts subject to this subpart beginning January 1, 2015.
- EO minimum wage rate for subsequent fiscal years will be determined by the Secretary of Labor.
- E.O. minimum wage rate applies whenever it is higher than any applicable collective bargaining agreement(s) wage rate.
- FAR 22.1903 clarifies the applicability to contracts (1) covered by the Service Contract Labor at 41 U.S.C. chapter 67 (a.k.a. Service Contract Act) or (2) covered by the Wage Rate Requirements (Construction) at 40 U.S.C. chapter 31, Subchapter IV (a.k.a. Davis Bacon Act)
- FAR 22.1905 stipulates that a contractor may request a price adjustment only after the effective date of a new annual E.O. minimum wage determination published. This subpart also stipulates that prices will be adjusted only if associated labor costs increase as a result of the annual E.O. minimum wage.
- Associated labor costs
- include increases/decreases resulting from:
- changes in social security, unemployment taxes, and workers’ compensation insurance
- do NOT include any increases/decreases resulting from:
- general and administrative costs, overhead, or profit