Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2018, 43408-43412 [2017-19668]

Download as PDF mstockstill on DSK30JT082PROD with NOTICES 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 17:07 Sep 14, 2017 Jkt 241001 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 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 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: E:\FR\FM\15SEN1.SGM 15SEN1 mstockstill on DSK30JT082PROD with NOTICES 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 17:07 Sep 14, 2017 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 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 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), http:// 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 E:\FR\FM\15SEN1.SGM 15SEN1 43410 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices mstockstill on DSK30JT082PROD with NOTICES 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 VerDate Sep<11>2014 17:07 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 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). E:\FR\FM\15SEN1.SGM 15SEN1 43411 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 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 mstockstill on DSK30JT082PROD with NOTICES BILLING CODE 4510–27–P VerDate Sep<11>2014 17:07 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\15SEN1.SGM 15SEN1 43412 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices AppendixB TIPS [FR Doc. 2017–19668 Filed 9–14–17; 8:45 am] BILLING CODE 4510–27–C VerDate Sep<11>2014 18:16 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00088 Fmt 4703 Sfmt 9990 E:\FR\FM\15SEN1.SGM 15SEN1 EN15SE17.000</GPH> mstockstill on DSK30JT082PROD with NOTICES 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]


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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.

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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), http://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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
                                                              ----------------------------------------------------------------------------------------------------------------------------------
    Annual Percentage Increase...............................  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........      1.691
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BILLING CODE 4510-27-P

[[Page 43412]]

[GRAPHIC] [TIFF OMITTED] TN15SE17.000

[FR Doc. 2017-19668 Filed 9-14-17; 8:45 am]
BILLING CODE 4510-27-C