Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2020, 49345-49348 [2019-19673]
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Federal Register / Vol. 84, No. 182 / Thursday, September 19, 2019 / Notices
The
Department of Labor, as part of
continuing efforts to reduce paperwork
and respondent burden, conducts a preclearance consultation program to
provide the general public and Federal
agencies an opportunity to comment on
proposed and/or continuing collections
of information before submitting them
to the OMB for final approval. This
program helps to ensure requested data
can be provided in the desired format,
reporting burden (time and financial
resources) is minimized, collection
instruments are clearly understood, and
the impact of collection requirements
can be properly assessed.
The Department of Labor’s VETS
administers funds for the Homeless
Veterans’ Reintegration Program grants
to state, local, and tribal governments;
businesses and other for-profit and notfor-profit organizations on an annual
program year basis. These competitive
grants are codified under 38 U.S.C.
2021, 2021A, and 2023.
VETS provides funds to
competitively-awarded grantees through
annual Funding Opportunity
Announcements and option year
funding. The total number of grantees
varies based on the amount of available
funds, awarded in grants up to $500,000
each.
The Assistant Secretary for Veterans’
Employment and Training monitors and
supervises the distribution and use of
those funds as required by 38 U.S.C.
2021 (b). Additionally, and in
accordance with 38 U.S.C. 2021 (d), the
Secretary reviews performance and
provides a biennial report to Congress
on the program, including an evaluation
of the services furnished to veterans and
an analysis of the information we have
collected. VETS intends to request
approval for this information collection
that streamlines the annual funding
request process for grantees, reports the
use of grantee funds in sufficient detail
to allow interim adjustments that ensure
all appropriated funding is expended
properly, and provides data needed for
VETS’ biennial report to Congress.
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the impact of collection requirements on
respondents are properly assessed,
collection instruments are clearly
understood by respondents, and the
information is easily consolidated for
posting in accordance with statutory
requirements.
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SUPPLEMENTARY INFORMATION:
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This information collection is subject
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shall generally be subject to penalty for
failing to comply with a collection of
information that does not display a
valid Control Number. See 5 CFR
1320.5(a) and 1320.6.
As previously noted this request has
been classified as a revision. More
specifically, VETS intends to add the
VETS–704 Applicant Summary form
that will allow VETS to timely make
informed decisions about grant awards,
and to request certain additional
information on the VETS–701 Technical
Performance Report about the
participants grantees serve and the
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must be written to receive
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consideration, comments should
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0014. Submitted comments will also be
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and posted on the internet, without
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commenters not to include personally
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• Evaluate whether the proposed
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for the proper performance of the
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• Minimize the burden of the
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49345
e.g., permitting electronic submission of
responses.
Agency: DOL–VETS.
Type of Review: Revision.
Title of Collection: VETS’ Competitive
Grant Program Reporting.
Forms:
1. VETS–700, Competitive Grants
(CG) Planned Goals Chart;
2. VETS–701, CG Technical
Performance Report (TPR);
3. VETS–702, CG Technical
Performance Narrative (TPN);
4. VETS–703, Stand Down After
Action Report (SDAAR) and;
5. VETS–704, Applicant Synopsis.
OMB Control Number: 1293–0014.
Affected Public: State, Local, and
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businesses or other for-profits and notfor-profit institutions.
Estimated Number of Respondents:
1,078.
Frequency: On occasion.
Total Estimated Annual Responses:
2,662.
Estimated Total Annual Burden
Hours: 11,004.
Total Estimated Annual Other Cost
Burden: $0.
Authority: 44 U.S.C. 3506(c)(2)(A).
Dated: Signed in Washington, DC, this 12th
day of September, 2019.
Joseph S. Shellenberger,
Acting Assistant Secretary, Veterans’
Employment and Training Service.
[FR Doc. 2019–20213 Filed 9–18–19; 8:45 am]
BILLING CODE 4510–79–P
DEPARTMENT OF LABOR
Wage and Hour Division
Establishing a Minimum Wage for
Contractors, Notice of Rate Change in
Effect as of January 1, 2020
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 for workers performing work
on or in connection with federal
contracts covered by Executive Order
13658, Establishing a Minimum Wage
for Contractors (the Executive Order or
the Order), beginning January 1, 2020.
Beginning on that date, 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 $10.80 per
hour, while the required minimum cash
wage that generally must be paid to
SUMMARY:
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49346
Federal Register / Vol. 84, No. 182 / Thursday, September 19, 2019 / Notices
tipped employees performing work on
or in connection with covered contracts
will increase to $7.55 per hour.
DATES: These new rates shall take effect
on January 1, 2020.
FOR FURTHER INFORMATION CONTACT:
Amy DeBisschop, Acting 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:
jbell on DSK3GLQ082PROD with NOTICES
I. Executive Order 13658 Background
and Requirements for Determining
Annual Increases to the Minimum
Wage Rate
The Executive Order was signed on
February 12, 2014, and raised the hourly
minimum wage for workers performing
work on or in connection with covered
federal contracts to $10.10 per hour,
beginning January 1, 2015, with annual
adjustments thereafter in 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 noticeand-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 for 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)(2),
explain that the applicable minimum
wage determined by the Secretary for
each calendar year shall be:
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• Not less than the amount in effect
on the date of such determination;
• 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
• 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. 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, ‘‘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, 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 takes 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 takes
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; 1 on all wage
1 Earlier
this year, WDOL.gov moved to
beta.SAM.gov and is now known as Wage
Determinations. The beta.SAM.gov website is the
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Fmt 4703
Sfmt 4703
determinations issued under the DavisBacon 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
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.
The Executive Order minimum wage
and the cash wage required for tipped
employees are currently $10.60 and
$7.40 per hour, respectively. The
Department announced these rates on
September 4, 2018, 83 FR 44906, and
the rates took effect on January 1, 2019.
II. The 2020 Executive Order Minimum
Wage Rate
Using 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, to determine the new Executive
Order minimum wage rate. In
calculating the annual percentage
increase in the CPI–W, 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
authoritative and single location for obtaining
appropriate Service Contract Act and Davis-Bacon
Act wage determinations for each official contract
action.
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49347
Federal Register / Vol. 84, No. 182 / Thursday, September 19, 2019 / Notices
quarters) and the prior year (i.e., the four
quarters preceding the most recent
year). The Department then increases
the current Executive Order minimum
wage rate by the resulting annual
percentage change and rounds to the
nearest multiple of $0.05.
In order to determine the Executive
Order minimum wage rate beginning
January 1, 2020, 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 2019 and the last two quarters of 2018
(i.e., July 2018 through June 2019). The
Department then compared that data to
the average CPI–W for the preceding
year, which consists of the first two
quarters of 2018 and the last two
quarters of 2017 (i.e., July 2017 through
June 2018). 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 2.036
percent. The Department then applied
that annual percentage increase of 2.036
percent to the current Executive Order
hourly minimum wage rate of $10.60,
which resulted in a wage rate of $10.816
(($10.60 × 0.02036) + $10.60); 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, 2020 is therefore $10.80 per
hour.
III. The 2020 Executive Order
Minimum Cash Wage For Tipped
Employees
As noted above, section 3 of the
Executive Order provides a
methodology to determine the amount
of the minimum hourly cash wage that
must be paid to tipped employees
performing on or in connection with
covered contracts. Because the cash
wage for tipped employees reached 70
percent of the Executive Order
minimum wage beginning on January 1,
2018 (i.e., $7.25 per hour compared to
$10.35 per hour), future updates to the
cash wage for tipped employees must
continue to set the rate at 70 percent of
the full Executive Order minimum
wage. Seventy percent of the new
Executive Order minimum wage rate of
$10.80 is $7.56. Because the Executive
Order provides that the rate must be
rounded to the nearest $0.05, the new
minimum hourly cash wage for tipped
workers performing on or in connection
with covered contracts beginning
January 1, 2020 is therefore $7.55 per
hour.
IV. Appendices
Appendix A to this notice provides a
comprehensive chart of the CPI–W data
Quarter 3
2017Q3 to 2018Q2 .........................................
2018Q3 to 2019Q2 .........................................
Annual Percentage Increase ..........................
238.617
246.155
..............
239.448
246.336
..............
Quarter 4
240.939
246.565
..............
240.573
247.038
..............
240.666
245.933
..............
published by BLS that the Department
used 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
poster that the Department published
with its Final Rule, reflecting the
updated wage rates that will be in effect
beginning January 1, 2020. 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 4, 2019.
Cheryl M. Stanton,
Administrator, Wage and Hour Division.
Appendix A: Data Used To Determine
Executive Order 13658 Minimum Wage
Rate Effective January 1, 2020
Data Source: Consumer Price Index
for Urban wage Earners and Clerical
Workers (CPI–W) (United States city
average, all items, not seasonally
adjusted)
Quarter 1
240.526
244.786
..............
241.919
245.133
..............
242.988
246.218
..............
Quarter 2
243.463
247.768
..............
244.607
249.332
..............
Appendix B: Updated Version of the
Executive Order 13658 Poster
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BILLING CODE 4510–27–P
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245.770
249.871
..............
Annual
average
246.196
249.747
..............
242.1427
247.0735
2.036%
49348
Federal Register / Vol. 84, No. 182 / Thursday, September 19, 2019 / Notices
MINIMUM WAGE
TIPS
EXCLUSIONS
ENFORCEMENT
[FR Doc. 2019–19673 Filed 9–18–19; 8:45 am]
BILLING CODE 4510–27–C
Board Room, 7th Floor, Room
7047, 1775 Duke Street, Alexandria, VA
22314–3428.
PLACE:
NATIONAL CREDIT UNION
ADMINISTRATION
Sunshine Act Meeting
STATUS:
10:00 a.m., Tuesday,
September 24, 2019.
TIME AND DATE:
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Closed.
MATTERS TO BE CONSIDERED:
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EN19SE19.025</GPH>
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ADDITIONAL
INFORMATION
]]>Agencies
[Federal Register Volume 84, Number 182 (Thursday, September 19, 2019)]
[Notices]
[Pages 49345-49348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19673]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Wage and Hour Division
Establishing a Minimum Wage for Contractors, Notice of Rate
Change in Effect as of January 1, 2020
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 for workers performing work on or in
connection with federal contracts covered by Executive Order 13658,
Establishing a Minimum Wage for Contractors (the Executive Order or the
Order), beginning January 1, 2020. Beginning on that date, 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 $10.80 per hour, while the required minimum cash wage that
generally must be paid to
[[Page 49346]]
tipped employees performing work on or in connection with covered
contracts will increase to $7.55 per hour.
DATES: These new rates shall take effect on January 1, 2020.
FOR FURTHER INFORMATION CONTACT: Amy DeBisschop, Acting 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
The Executive Order was signed on February 12, 2014, and raised the
hourly minimum wage for workers performing work on or in connection
with covered federal contracts to $10.10 per hour, beginning January 1,
2015, with annual adjustments thereafter in 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 for 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)(2), explain
that the applicable minimum wage determined by the Secretary for each
calendar year shall be:
Not less than the amount in effect on the date of such
determination;
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
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. 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, ``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, 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 takes
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 takes 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; \1\ 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).
---------------------------------------------------------------------------
\1\ Earlier this year, WDOL.gov moved to beta.SAM.gov and is now
known as Wage Determinations. The beta.SAM.gov website is the
authoritative and single location for obtaining appropriate Service
Contract Act and Davis-Bacon Act wage determinations for each
official contract action.
---------------------------------------------------------------------------
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 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.
The Executive Order minimum wage and the cash wage required for
tipped employees are currently $10.60 and $7.40 per hour, respectively.
The Department announced these rates on September 4, 2018, 83 FR 44906,
and the rates took effect on January 1, 2019.
II. The 2020 Executive Order Minimum Wage Rate
Using 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, to determine the
new Executive Order minimum wage rate. In calculating the annual
percentage increase in the CPI-W, 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
[[Page 49347]]
quarters) and the prior year (i.e., the four quarters preceding the
most recent year). The Department then increases the current Executive
Order minimum wage rate by the resulting annual percentage change and
rounds to the nearest multiple of $0.05.
In order to determine the Executive Order minimum wage rate
beginning January 1, 2020, 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 2019 and
the last two quarters of 2018 (i.e., July 2018 through June 2019). The
Department then compared that data to the average CPI-W for the
preceding year, which consists of the first two quarters of 2018 and
the last two quarters of 2017 (i.e., July 2017 through June 2018).
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 2.036 percent. The Department then
applied that annual percentage increase of 2.036 percent to the current
Executive Order hourly minimum wage rate of $10.60, which resulted in a
wage rate of $10.816 (($10.60 x 0.02036) + $10.60); 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, 2020 is therefore $10.80 per hour.
III. The 2020 Executive Order Minimum Cash Wage For Tipped Employees
As noted above, section 3 of the Executive Order provides a
methodology to determine the amount of the minimum hourly cash wage
that must be paid to tipped employees performing on or in connection
with covered contracts. Because the cash wage for tipped employees
reached 70 percent of the Executive Order minimum wage beginning on
January 1, 2018 (i.e., $7.25 per hour compared to $10.35 per hour),
future updates to the cash wage for tipped employees must continue to
set the rate at 70 percent of the full Executive Order minimum wage.
Seventy percent of the new Executive Order minimum wage rate of $10.80
is $7.56. Because the Executive Order provides that the rate must be
rounded to the nearest $0.05, the new minimum hourly cash wage for
tipped workers performing on or in connection with covered contracts
beginning January 1, 2020 is therefore $7.55 per hour.
IV. Appendices
Appendix A to this notice provides a comprehensive chart of the
CPI-W data published by BLS that the Department used 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 poster that the Department published
with its Final Rule, reflecting the updated wage rates that will be in
effect beginning January 1, 2020. 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 4, 2019.
Cheryl M. Stanton,
Administrator, Wage and Hour Division.
Appendix A: Data Used To Determine Executive Order 13658 Minimum Wage
Rate Effective January 1, 2020
Data Source: Consumer Price Index for Urban wage Earners and
Clerical Workers (CPI-W) (United States city average, all items, not
seasonally adjusted)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Quarter 3
Quarter 4
Quarter 1
Quarter 2 Annual
average
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2017Q3 to 2018Q2............................................ 238.617 239.448 240.939 240.573 240.666 240.526 241.919 242.988 243.463 244.607 245.770 246.196 242.1427
2018Q3 to 2019Q2............................................ 246.155 246.336 246.565 247.038 245.933 244.786 245.133 246.218 247.768 249.332 249.871 249.747 247.0735
Annual Percentage Increase.................................. ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 2.036%
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Appendix B: Updated Version of the Executive Order 13658 Poster
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[FR Doc. 2019-19673 Filed 9-18-19; 8:45 am]
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