Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2018, 43408-43412 [2017-19668]
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43408
Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices
unsubmitted and untested kits have
emerged in jurisdictions across the
country (e.g., Peterson and Hickman,
2005; Strom et al., 2009). The Bureau of
Justice Assistance (BJA) established the
Sexual Assault Kit Initiative (SAKI) to
provide assistance to jurisdictions who
are addressing these issues. In FY 2015,
20 sites were funded through SAKI to
engage in reforms intended to improve
the national response to sexual assault
cases.
The objectives of the current study are
to conduct an evaluability assessment of
all 20 FY 2015 sites to determine their
readiness to participate in an evaluation
of the SAKI and to develop a
comprehensive and rigorous evaluation
plan to ultimately determine the extent
to which SAKI reforms have resulted in
intended (and/or unintended) system
changes. The evaluability assessment
data collection process will include
visits to the 20 sites, which will be
comprised of individual and group
interviews with a maximum of 20
respondents per site.
The types of respondents who will be
asked to respond to requests for
interviews will include the SAKI Site
Coordinator, representatives from
sectors involved in working groups (e.g.,
law enforcement, forensic medical
personnel, forensic laboratory
personnel, prosecutors, victim
advocates, victim treatment providers),
specialized staff (e.g., cold case
detectives, police administrative
support, victim compensation staff).
5. An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond: The estimated average burden
for a respondent completing a site visit
interview is approximately 60 minutes.
A maximum of 20 respondents will be
interviewed, either individually or in
groups, at each of the 20 sites.
Therefore, the total number of estimated
respondents for the entire evaluability
site visit data collection is 400 (20 sites
× 20 respondents per site).
6. An estimate of the total public
burden (in hours) associated with the
collection: The maximum estimated
public burden associated with this
collection is 400 hours. It is estimated
that each of the 400 site visit interviews
will take 60 minutes to complete (400
respondents × 60 minutes = 400 hours).
If additional information is required
contact: Melody Braswell, Department
Clearance Officer, United States
Department of Justice, Justice
Management Division, Policy and
Planning Staff, Two Constitution
Square, 145 N Street NE., 3E.405A,
Washington, DC 20530.
VerDate Sep<11>2014
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Dated: September 12, 2017.
Melody Braswell,
Department Clearance Officer for PRA, U.S.
Department of Justice.
[FR Doc. 2017–19641 Filed 9–14–17; 8:45 am]
BILLING CODE 4410–18–P
DEPARTMENT OF LABOR
Fiscal Year (FY) 2016 Through FY 2017
Stand Down Grant Requests
Veterans’ Employment and
Training Service (VETS), Department of
Labor.
ACTION: Amendment to Federal
Register, 80 FR 80390 (Dec. 24, 2015)
[FR Doc. 2015–32406 Filed 12–23–15;
8:45 a.m.]. This amendment extends
funding for Stand Down events to
December 31, 2017, contingent upon
funding availability, and extends the
award ceiling to $50,000 for Stand
Down events planned to take place in
certain designated counties where a
federal major disaster has been declared
by the President and where the
Secretary has determined circumstances
appropriate for an increased award
ceiling.
AGENCY:
This notice amends 80 FR
80390 (Dec. 24, 2015) [FR Doc. 2015–
32406 Filed 12–23–15; 8:45 a.m.]. The
revised language is below:
SUMMARY:
IV. Award Information
In recognition of the substantial scale
of such disasters as Hurricane Harvey,
the Secretary has determined it
appropriate, in certain circumstances
where a federal major disaster has been
declared, to allow entities proposing to
conduct Stand Down events in areas
impacted by those disasters to apply for
funds in amounts up to $50,000. It is
anticipated that this expanded ceiling
will be most often provided on account
of disasters that are similar in scale to
such events as Hurricane Harvey and
that impact substantial populations. In
such circumstances, as declared by the
Secretary in writing, entities proposing
to conduct Stand Down events (1)
within those designated counties where
a federal major disaster has been
declared by the President, or (2) in
geographical areas to which a
substantial number of veterans from
those declared counties have been
relocated, may apply for a one-time
request for funds in amounts up to
$50,000 through December 31, 2017.
Applications will be processed and
awarded subject to availability of
funding. The general maximum award
amounts of $10,000 per applicant per
fiscal year for multiple day Stand Down
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events, or $7,000 for one day events,
will not apply to such requests for
designated counties where a federal
major disaster has been declared by the
President. Acceptable uses of Stand
Down grant funds have not changed.
Applicants may expend these funds
over a period not to exceed September
30, 2018, or if funded after October 1,
2017, applicants may expend these
funds over a period not to exceed
September 20, 2019, the statutory life of
the appropriated funds.
The Secretary hereby declares that
entities proposing to conduct Stand
Down events in areas impacted by the
following disasters may apply for funds
in amounts up to $50,000: (1) Within
those designated counties in Texas,
parishes in Louisiana, or counties in
other States, where a federal major
disaster has been declared by the
President on account of Hurricane
Harvey, Tropical Storm Harvey, or
related storm systems, or in
geographical areas to which a
substantial number of veterans from
those declared counties or parishes have
been relocated; and (2) within those
designated counties, municipalities, or
districts in Florida, Puerto Rico, and the
U.S. Virgin Islands, or counties in other
States, where a federal major disaster
has been declared by the President on
account of Hurricane Irma, Tropical
Storm Irma, or related storm systems, or
in geographical areas to which a
substantial number of veterans from
those declared counties, municipalities,
or districts have been relocated.
FOR FURTHER INFORMATION CONTACT:
Thomas Martin, Grant Officer, Office of
Grants Management, at (202) 693-2989,
Martin.Thomas@dol.gov.
Sam Shellenberger,
Deputy Assistant Secretary, Veterans’
Employment and Training Service.
[FR Doc. 2017–19664 Filed 9–14–17; 8:45 am]
BILLING CODE 4510–79–P
DEPARTMENT OF LABOR
Office of the Secretary
Establishing a Minimum Wage for
Contractors, Notice of Rate Change in
Effect as of January 1, 2018
Wage and Hour Division,
Department of Labor.
ACTION: Notice.
AGENCY:
The Wage and Hour Division
(WHD) of the U.S. Department of Labor
(the Department) is issuing this notice to
announce the applicable minimum
wage rate to be paid to workers
performing work on or in connection
SUMMARY:
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Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices
with Federal contracts covered by
Executive Order 13658, beginning
January 1, 2018.
Executive Order 13658, Establishing a
Minimum Wage for Contractors (the
Executive Order or the Order), was
signed on February 12, 2014, and raised
the hourly minimum wage paid by
contractors to workers performing work
on covered Federal contracts to: $10.10
per hour, beginning January 1, 2015;
and beginning January 1, 2016, and
annually thereafter, an amount
determined by the Secretary of Labor
(the Secretary) in accordance with the
methodology set forth in the Order. See
79 FR 9851. The Secretary’s
determination of the Executive Order
minimum wage rate also affects the
minimum hourly cash wage that must
be paid to tipped employees performing
work on or in connection with covered
contracts. See 79 FR 9851–52. The
Secretary is required to provide notice
to the public of the new minimum wage
rate at least 90 days before such rate is
to take effect. See 79 FR 9851. The
applicable minimum wage under
Executive Order 13658 is currently
$10.20 per hour, in effect since January
1, 2017. See 81 FR 64513. The
applicable minimum cash wage that
generally must be paid to tipped
employees performing work on or in
connection with covered contracts is
currently $6.80 per hour, in effect since
January 1, 2017. Id.
Pursuant to Executive Order 13658
and its implementing regulations at 29
CFR part 10, notice is hereby given that
beginning January 1, 2018, the
Executive Order minimum wage rate
that generally must be paid to workers
performing work on or in connection
with covered contracts will increase to
$10.35 per hour. Notice is also hereby
given that, beginning January 1, 2018,
the required minimum cash wage that
generally must be paid to tipped
employees performing work on or in
connection with covered contracts will
increase to $7.25 per hour.
DATES: This notice is effective on
September 15, 2017.
FOR FURTHER INFORMATION CONTACT:
Melissa Smith, Director, Division of
Regulations, Legislation, and
Interpretation, Wage and Hour Division,
U.S. Department of Labor, Room
S–3502, 200 Constitution Avenue NW.,
Washington, DC 20210; telephone: (202)
693–0406 (this is not a toll-free
number). Copies of this notice may be
obtained in alternative formats (Large
Print, Braille, Audio Tape, or Disc),
upon request, by calling (202) 693–0023
(not a toll-free number). TTY/TTD
callers may dial toll-free (877) 889–5627
VerDate Sep<11>2014
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Jkt 241001
to obtain information or request
materials in alternative formats.
SUPPLEMENTARY INFORMATION:
I. Executive Order 13658, Background
and Requirements for Determining
Annual Increases to the Minimum
Wage Rate
Executive Order 13658 was signed on
February 12, 2014, and raised the hourly
minimum wage paid by contractors to
workers performing work on or in
connection with covered Federal
contracts to $10.10 per hour, beginning
January 1, 2015; and beginning January
1, 2016, and annually thereafter, an
amount determined by the Secretary
pursuant to the Order. See 79 FR 9851.
The Executive Order directed the
Secretary to issue regulations to
implement the Order’s requirements.
See 79 FR 9852. Accordingly, after
engaging in notice-and-comment
rulemaking, the Department published a
Final Rule on October 7, 2014 to
implement the Executive Order. See 79
FR 60634. The final regulations, set
forth at 29 CFR part 10, established
standards and procedures for
implementing and enforcing the
minimum wage protections of the
Order.
The Executive Order and its
implementing regulations require the
Secretary to determine the applicable
minimum wage rate to be paid to
workers performing work on or in
connection with covered contracts on an
annual basis, beginning January 1, 2016.
See 79 FR 9851; 29 CFR 10.1(a)(2),
10.5(a)(2), 10.12(a). Sections 2(a) and (b)
of the Order establish the methodology
that the Secretary must use to determine
the annual inflation-based increases to
the minimum wage rate. See 79 FR
9851. These provisions, which are
implemented in 29 CFR 10.5(b), explain
that the applicable minimum wage
determined by the Secretary for each
calendar year shall be:
(i) Not less than the amount in effect
on the date of such determination;
(ii) Increased from such amount by
the annual percentage increase in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W)
(United States city average, all items,
not seasonally adjusted), or its successor
publication, as determined by the
Bureau of Labor Statistics (BLS); and
(iii) Rounded to the nearest multiple
of $0.05.
Section 2(b) of the Executive Order
further provides that, in calculating the
annual percentage increase in the
CPI–W for purposes of determining the
new minimum wage rate, the Secretary
shall compare such CPI–W for the most
recent month, quarter, or year available
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43409
(as selected by the Secretary prior to the
first year for which a minimum wage is
in effect) with the CPI–W for the same
month in the preceding year, the same
quarter in the preceding year, or the
preceding year, respectively. See 79 FR
9851. In order to calculate the annual
percentage increase in the CPI–W, the
Department elected in its Final Rule
implementing the Executive Order to
compare such CPI–W for the most
recent year available with the CPI–W for
the preceding year. See 29 CFR
10.5(b)(2)(iii). In its Final Rule, the
Department explained that it decided to
compare the CPI–W for the most recent
year available (instead of using the most
recent month or quarter, as allowed by
the Order) with the CPI–W for the
preceding year, in order ‘‘to minimize
the impact of seasonal fluctuations on
the Executive Order minimum wage
rate.’’ 79 FR 60666.
Once a determination has been made
with respect to the new minimum wage
rate to be paid to workers performing
work on or in connection with covered
contracts, the Executive Order and its
implementing regulations require the
Secretary to notify the public of the
applicable minimum wage rate on an
annual basis at least 90 days before any
new minimum wage is to take effect.
See 79 FR 9851; 29 CFR 10.5(a)(2),
10.12(c)(1). The regulations explain that
the Administrator of the Department’s
Wage and Hour Division (the
Administrator) will publish an annual
notice in the Federal Register stating
the applicable minimum wage rate at
least 90 days before any new minimum
wage is to take effect. See 29 CFR
10.12(c)(2)(i). Additionally, the
regulations state that the Administrator
will provide notice of the Executive
Order minimum wage rate on Wage
Determinations OnLine (WDOL), https://
www.wdol.gov, or any successor site; on
all wage determinations issued under
the Davis-Bacon Act (DBA), 40 U.S.C.
3141 et seq., and the Service Contract
Act (SCA), 41 U.S.C. 6701 et seq.; and
by other means the Administrator
deems appropriate. See 29 CFR
10.12(c)(2)(ii)–(iv).
Section 3 of the Executive Order
requires contractors to pay tipped
employees covered by the Order
performing on or in connection with
covered contracts an hourly cash wage
of at least $4.90, beginning on January
1, 2015, provided the employees receive
sufficient tips to equal the Executive
Order minimum wage rate under section
2 of the Order when combined with the
cash wage. See 79 FR 9851–52; 29 CFR
10.28(a). The Order further provides
that, in each succeeding year, beginning
January 1, 2016, the required cash wage
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must increase by $0.95 (or a lesser
amount if necessary) until it reaches 70
percent of the Executive Order
minimum wage. Id. For subsequent
years, the cash wage for tipped
employees will be 70 percent of the
Executive Order minimum wage
rounded to the nearest $0.05. Id. At all
times, the amount of tips received by
the employee must equal at least the
difference between the cash wage paid
and the Executive Order minimum
wage; if the employee does not receive
sufficient tips, the contractor must
increase the cash wage paid so that the
cash wage in combination with the tips
received equals the Executive Order
minimum wage. Id.
On September 20, 2016, the
Administrator published a notice in the
Federal Register informing the public
that, effective January 1, 2017, the
Executive Order minimum wage and the
minimum cash wage required to be paid
to tipped employees covered by the
Executive Order would be $10.20 and
$6.80 per hour, respectively. See 81 FR
64513.
(i.e., July 2016 through June 2017). The
Department then compared that data to
the average CPI–W for the preceding
year, which consists of the first two
quarters of 2016 and the last two
quarters of 2015 (i.e., July 2015 through
June 2016). Based on this methodology,
the Department determined that the
annual percentage increase in the CPI–
W (United States city average, all items,
not seasonally adjusted) was 1.691
percent. The Department then applied
that annual percentage increase of 1.691
percent to the current Executive Order
hourly minimum wage rate of $10.20,
which resulted in a wage rate of $10.37
(($10.20 × .01691) + $10.20); however,
pursuant to the Executive Order, that
rate must be rounded to the nearest
multiple of $0.05.
The new Executive Order minimum
wage rate that must generally be paid to
workers performing on or in connection
with covered contracts beginning
January 1, 2018 is therefore $10.35 per
hour.
III. The 2018 Executive Order
Minimum Cash Wage for Tipped
II. The 2018 Executive Order Minimum Employees
Wage Rate
As noted above, section 3 of the
Executive Order requires contractors to
In accordance with the methodology
pay tipped employees covered by the
set forth in the Executive Order and
Order performing on or in connection
summarized above, the Department
with covered contracts an hourly cash
must first determine the annual
wage of at least $4.90, beginning January
percentage increase in the CPI–W
1, 2015, provided the employees receive
(United States city average, all items,
not seasonally adjusted) as published by sufficient tips to equal the Executive
Order minimum wage rate under section
BLS in order to determine the new
Executive Order minimum wage rate. In 2 of the Order when combined with the
cash wage. See 79 FR 9851–52; 29 CFR
calculating the annual percentage
10.28(a). Section 3 of the Executive
increase in the CPI, the Department
Order also provides a methodology to be
must compare the CPI–W for the most
recent year available with the CPI–W for utilized each year in determining the
amount of the minimum hourly cash
the preceding year. The Department
wage that must be paid to tipped
therefore compares the percentage
employees performing on or in
change in the CPI–W between the most
connection with covered contracts.
recent year (i.e., the most recent four
quarters) and the prior year (i.e., the four Pursuant to the Order, in each
succeeding year, beginning January 1,
quarters preceding the most recent
2016, the required cash wage increases
year). The current Executive Order
by $0.95 (or a lesser amount if
minimum wage rate must then be
necessary) until it reaches 70 percent of
increased by the resulting annual
the Executive Order minimum wage
percentage change and rounded to the
rate. For subsequent years, the cash
nearest multiple of $0.05.
In order to determine the Executive
wage for tipped employees will be 70
Order minimum wage rate beginning
percent of the Executive Order
January 1, 2018, the Department
minimum wage rate rounded to the
therefore calculated the CPI–W for the
nearest $0.05.
In order to determine the minimum
most recent year by averaging the CPI–
hourly cash wage that must be paid to
W for the four most recent quarters,
tipped employees performing on or in
which consist of the first two quarters
of 2017 and the last two quarters of 2016 connection with covered contracts
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beginning January 1, 2018, the
Department first calculated that 70
percent of the new Executive Order
minimum wage rate of $10.35 is $7.25,
which is $0.45 more than the current
minimum cash wage of $6.80 per hour.
The Executive Order provides that the
current minimum hourly cash wage of
$6.80 must increase by the lesser of
$0.95 or the amount necessary for the
hourly cash wage to equal 70 percent of
the applicable Executive Order
minimum wage. Because $0.45 (the
amount necessary for the hourly cash
wage to reach 70 percent of $10.35) is
less than $0.95, the hourly cash wage
must increase by $0.45.
The new minimum hourly cash wage
that must generally be paid to tipped
workers performing on or in connection
with covered contracts beginning
January 1, 2018 is therefore $7.25 per
hour.
IV. Appendices
Appendix A to this notice provides a
comprehensive chart of the CPI–W data
published by BLS that the Department
utilized to calculate the new Executive
Order minimum wage rate based on the
methodology explained herein.
Appendix B to this notice sets forth an
updated version of the Executive Order
13658 poster that the Department
published with its Final Rule, reflecting
the updated wage rates that will be in
effect beginning January 1, 2018. See 79
FR 60732–33. Pursuant to 29 CFR 10.29,
contractors are required to notify all
workers performing on or in connection
with a covered contract of the
applicable minimum wage rate under
the Executive Order. Contractors with
employees covered by the Fair Labor
Standards Act who are performing on or
in connection with a covered contract
may satisfy the notice requirement by
displaying the poster set forth in
Appendix B in a prominent or
accessible place at the worksite.
Dated: September 6, 2017.
Patricia Davidson,
Deputy Administrator for Program
Operations, Wage and Hour Division.
Appendix A: Data Used To Determine
Executive Order 13658 Minimum Wage
Rate Effective January 1, 2018
Data Source: Consumer Price Index for
Urban Wage Earners and Clerical Workers
(CPI–W) (United States city average, all
items, not seasonally adjusted).
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Quarter 3
Quarter 4
Quarter 1
Quarter 2
Annual
average
2015Q3 to 2016Q2
2016Q3 to 2017Q2
233.806
234.771
233.366
234.904
232.661
235.495
232.373
235.732
231.721
235.215
230.791
235.390
231.061
236.854
230.972
237.477
232.209
237.656
233.438
238.432
234.436
238.609
235.289
238.813
232.6769
236.6123
Annual Percentage Increase .........
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
1.691
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AppendixB
TIPS
[FR Doc. 2017–19668 Filed 9–14–17; 8:45 am]
BILLING CODE 4510–27–C
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ENFORCEMENT
]]>Agencies
[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43408-43412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19668]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Office of the Secretary
Establishing a Minimum Wage for Contractors, Notice of Rate
Change in Effect as of January 1, 2018
AGENCY: Wage and Hour Division, Department of Labor.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Wage and Hour Division (WHD) of the U.S. Department of
Labor (the Department) is issuing this notice to announce the
applicable minimum wage rate to be paid to workers performing work on
or in connection
[[Page 43409]]
with Federal contracts covered by Executive Order 13658, beginning
January 1, 2018.
Executive Order 13658, Establishing a Minimum Wage for Contractors
(the Executive Order or the Order), was signed on February 12, 2014,
and raised the hourly minimum wage paid by contractors to workers
performing work on covered Federal contracts to: $10.10 per hour,
beginning January 1, 2015; and beginning January 1, 2016, and annually
thereafter, an amount determined by the Secretary of Labor (the
Secretary) in accordance with the methodology set forth in the Order.
See 79 FR 9851. The Secretary's determination of the Executive Order
minimum wage rate also affects the minimum hourly cash wage that must
be paid to tipped employees performing work on or in connection with
covered contracts. See 79 FR 9851-52. The Secretary is required to
provide notice to the public of the new minimum wage rate at least 90
days before such rate is to take effect. See 79 FR 9851. The applicable
minimum wage under Executive Order 13658 is currently $10.20 per hour,
in effect since January 1, 2017. See 81 FR 64513. The applicable
minimum cash wage that generally must be paid to tipped employees
performing work on or in connection with covered contracts is currently
$6.80 per hour, in effect since January 1, 2017. Id.
Pursuant to Executive Order 13658 and its implementing regulations
at 29 CFR part 10, notice is hereby given that beginning January 1,
2018, the Executive Order minimum wage rate that generally must be paid
to workers performing work on or in connection with covered contracts
will increase to $10.35 per hour. Notice is also hereby given that,
beginning January 1, 2018, the required minimum cash wage that
generally must be paid to tipped employees performing work on or in
connection with covered contracts will increase to $7.25 per hour.
DATES: This notice is effective on September 15, 2017.
FOR FURTHER INFORMATION CONTACT: Melissa Smith, Director, Division of
Regulations, Legislation, and Interpretation, Wage and Hour Division,
U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW.,
Washington, DC 20210; telephone: (202) 693-0406 (this is not a toll-
free number). Copies of this notice may be obtained in alternative
formats (Large Print, Braille, Audio Tape, or Disc), upon request, by
calling (202) 693-0023 (not a toll-free number). TTY/TTD callers may
dial toll-free (877) 889-5627 to obtain information or request
materials in alternative formats.
SUPPLEMENTARY INFORMATION:
I. Executive Order 13658, Background and Requirements for Determining
Annual Increases to the Minimum Wage Rate
Executive Order 13658 was signed on February 12, 2014, and raised
the hourly minimum wage paid by contractors to workers performing work
on or in connection with covered Federal contracts to $10.10 per hour,
beginning January 1, 2015; and beginning January 1, 2016, and annually
thereafter, an amount determined by the Secretary pursuant to the
Order. See 79 FR 9851. The Executive Order directed the Secretary to
issue regulations to implement the Order's requirements. See 79 FR
9852. Accordingly, after engaging in notice-and-comment rulemaking, the
Department published a Final Rule on October 7, 2014 to implement the
Executive Order. See 79 FR 60634. The final regulations, set forth at
29 CFR part 10, established standards and procedures for implementing
and enforcing the minimum wage protections of the Order.
The Executive Order and its implementing regulations require the
Secretary to determine the applicable minimum wage rate to be paid to
workers performing work on or in connection with covered contracts on
an annual basis, beginning January 1, 2016. See 79 FR 9851; 29 CFR
10.1(a)(2), 10.5(a)(2), 10.12(a). Sections 2(a) and (b) of the Order
establish the methodology that the Secretary must use to determine the
annual inflation-based increases to the minimum wage rate. See 79 FR
9851. These provisions, which are implemented in 29 CFR 10.5(b),
explain that the applicable minimum wage determined by the Secretary
for each calendar year shall be:
(i) Not less than the amount in effect on the date of such
determination;
(ii) Increased from such amount by the annual percentage increase
in the Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W) (United States city average, all items, not seasonally
adjusted), or its successor publication, as determined by the Bureau of
Labor Statistics (BLS); and
(iii) Rounded to the nearest multiple of $0.05.
Section 2(b) of the Executive Order further provides that, in
calculating the annual percentage increase in the CPI-W for purposes of
determining the new minimum wage rate, the Secretary shall compare such
CPI-W for the most recent month, quarter, or year available (as
selected by the Secretary prior to the first year for which a minimum
wage is in effect) with the CPI-W for the same month in the preceding
year, the same quarter in the preceding year, or the preceding year,
respectively. See 79 FR 9851. In order to calculate the annual
percentage increase in the CPI-W, the Department elected in its Final
Rule implementing the Executive Order to compare such CPI-W for the
most recent year available with the CPI-W for the preceding year. See
29 CFR 10.5(b)(2)(iii). In its Final Rule, the Department explained
that it decided to compare the CPI-W for the most recent year available
(instead of using the most recent month or quarter, as allowed by the
Order) with the CPI-W for the preceding year, in order ``to minimize
the impact of seasonal fluctuations on the Executive Order minimum wage
rate.'' 79 FR 60666.
Once a determination has been made with respect to the new minimum
wage rate to be paid to workers performing work on or in connection
with covered contracts, the Executive Order and its implementing
regulations require the Secretary to notify the public of the
applicable minimum wage rate on an annual basis at least 90 days before
any new minimum wage is to take effect. See 79 FR 9851; 29 CFR
10.5(a)(2), 10.12(c)(1). The regulations explain that the Administrator
of the Department's Wage and Hour Division (the Administrator) will
publish an annual notice in the Federal Register stating the applicable
minimum wage rate at least 90 days before any new minimum wage is to
take effect. See 29 CFR 10.12(c)(2)(i). Additionally, the regulations
state that the Administrator will provide notice of the Executive Order
minimum wage rate on Wage Determinations OnLine (WDOL), https://www.wdol.gov, or any successor site; on all wage determinations issued
under the Davis-Bacon Act (DBA), 40 U.S.C. 3141 et seq., and the
Service Contract Act (SCA), 41 U.S.C. 6701 et seq.; and by other means
the Administrator deems appropriate. See 29 CFR 10.12(c)(2)(ii)-(iv).
Section 3 of the Executive Order requires contractors to pay tipped
employees covered by the Order performing on or in connection with
covered contracts an hourly cash wage of at least $4.90, beginning on
January 1, 2015, provided the employees receive sufficient tips to
equal the Executive Order minimum wage rate under section 2 of the
Order when combined with the cash wage. See 79 FR 9851-52; 29 CFR
10.28(a). The Order further provides that, in each succeeding year,
beginning January 1, 2016, the required cash wage
[[Page 43410]]
must increase by $0.95 (or a lesser amount if necessary) until it
reaches 70 percent of the Executive Order minimum wage. Id. For
subsequent years, the cash wage for tipped employees will be 70 percent
of the Executive Order minimum wage rounded to the nearest $0.05. Id.
At all times, the amount of tips received by the employee must equal at
least the difference between the cash wage paid and the Executive Order
minimum wage; if the employee does not receive sufficient tips, the
contractor must increase the cash wage paid so that the cash wage in
combination with the tips received equals the Executive Order minimum
wage. Id.
On September 20, 2016, the Administrator published a notice in the
Federal Register informing the public that, effective January 1, 2017,
the Executive Order minimum wage and the minimum cash wage required to
be paid to tipped employees covered by the Executive Order would be
$10.20 and $6.80 per hour, respectively. See 81 FR 64513.
II. The 2018 Executive Order Minimum Wage Rate
In accordance with the methodology set forth in the Executive Order
and summarized above, the Department must first determine the annual
percentage increase in the CPI-W (United States city average, all
items, not seasonally adjusted) as published by BLS in order to
determine the new Executive Order minimum wage rate. In calculating the
annual percentage increase in the CPI, the Department must compare the
CPI-W for the most recent year available with the CPI-W for the
preceding year. The Department therefore compares the percentage change
in the CPI-W between the most recent year (i.e., the most recent four
quarters) and the prior year (i.e., the four quarters preceding the
most recent year). The current Executive Order minimum wage rate must
then be increased by the resulting annual percentage change and rounded
to the nearest multiple of $0.05.
In order to determine the Executive Order minimum wage rate
beginning January 1, 2018, the Department therefore calculated the CPI-
W for the most recent year by averaging the CPI-W for the four most
recent quarters, which consist of the first two quarters of 2017 and
the last two quarters of 2016 (i.e., July 2016 through June 2017). The
Department then compared that data to the average CPI-W for the
preceding year, which consists of the first two quarters of 2016 and
the last two quarters of 2015 (i.e., July 2015 through June 2016).
Based on this methodology, the Department determined that the annual
percentage increase in the CPI-W (United States city average, all
items, not seasonally adjusted) was 1.691 percent. The Department then
applied that annual percentage increase of 1.691 percent to the current
Executive Order hourly minimum wage rate of $10.20, which resulted in a
wage rate of $10.37 (($10.20 x .01691) + $10.20); however, pursuant to
the Executive Order, that rate must be rounded to the nearest multiple
of $0.05.
The new Executive Order minimum wage rate that must generally be
paid to workers performing on or in connection with covered contracts
beginning January 1, 2018 is therefore $10.35 per hour.
III. The 2018 Executive Order Minimum Cash Wage for Tipped Employees
As noted above, section 3 of the Executive Order requires
contractors to pay tipped employees covered by the Order performing on
or in connection with covered contracts an hourly cash wage of at least
$4.90, beginning January 1, 2015, provided the employees receive
sufficient tips to equal the Executive Order minimum wage rate under
section 2 of the Order when combined with the cash wage. See 79 FR
9851-52; 29 CFR 10.28(a). Section 3 of the Executive Order also
provides a methodology to be utilized each year in determining the
amount of the minimum hourly cash wage that must be paid to tipped
employees performing on or in connection with covered contracts.
Pursuant to the Order, in each succeeding year, beginning January 1,
2016, the required cash wage increases by $0.95 (or a lesser amount if
necessary) until it reaches 70 percent of the Executive Order minimum
wage rate. For subsequent years, the cash wage for tipped employees
will be 70 percent of the Executive Order minimum wage rate rounded to
the nearest $0.05.
In order to determine the minimum hourly cash wage that must be
paid to tipped employees performing on or in connection with covered
contracts beginning January 1, 2018, the Department first calculated
that 70 percent of the new Executive Order minimum wage rate of $10.35
is $7.25, which is $0.45 more than the current minimum cash wage of
$6.80 per hour. The Executive Order provides that the current minimum
hourly cash wage of $6.80 must increase by the lesser of $0.95 or the
amount necessary for the hourly cash wage to equal 70 percent of the
applicable Executive Order minimum wage. Because $0.45 (the amount
necessary for the hourly cash wage to reach 70 percent of $10.35) is
less than $0.95, the hourly cash wage must increase by $0.45.
The new minimum hourly cash wage that must generally be paid to
tipped workers performing on or in connection with covered contracts
beginning January 1, 2018 is therefore $7.25 per hour.
IV. Appendices
Appendix A to this notice provides a comprehensive chart of the
CPI-W data published by BLS that the Department utilized to calculate
the new Executive Order minimum wage rate based on the methodology
explained herein. Appendix B to this notice sets forth an updated
version of the Executive Order 13658 poster that the Department
published with its Final Rule, reflecting the updated wage rates that
will be in effect beginning January 1, 2018. See 79 FR 60732-33.
Pursuant to 29 CFR 10.29, contractors are required to notify all
workers performing on or in connection with a covered contract of the
applicable minimum wage rate under the Executive Order. Contractors
with employees covered by the Fair Labor Standards Act who are
performing on or in connection with a covered contract may satisfy the
notice requirement by displaying the poster set forth in Appendix B in
a prominent or accessible place at the worksite.
Dated: September 6, 2017.
Patricia Davidson,
Deputy Administrator for Program Operations, Wage and Hour Division.
Appendix A: Data Used To Determine Executive Order 13658 Minimum Wage
Rate Effective January 1, 2018
Data Source: Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) (United States city average, all items, not
seasonally adjusted).
[[Page 43411]]
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Quarter 3
Quarter 4
Quarter 1
Quarter 2 Annual
average
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2015Q3 to 2016Q2............................................. 233.806 233.366 232.661 232.373 231.721 230.791 231.061 230.972 232.209 233.438 234.436 235.289 232.6769
2016Q3 to 2017Q2............................................. 234.771 234.904 235.495 235.732 235.215 235.390 236.854 237.477 237.656 238.432 238.609 238.813 236.6123
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Annual Percentage Increase............................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 1.691
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BILLING CODE 4510-27-P
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[GRAPHIC] [TIFF OMITTED] TN15SE17.000
[FR Doc. 2017-19668 Filed 9-14-17; 8:45 am]
BILLING CODE 4510-27-C
