Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2021, 53850-53854 [2020-19037]

Download as PDF 53850 Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices HOVENSA L.L.C.’s 2011 Consent Decree obligations. Subsequent to that purchase, Limetree Bay Terminals, LLC transferred certain assets to Limetree Bay Refining, LLC. Paragraph 7 of the 2011 Consent Decree requires HOVENSA L.L.C. to condition any transfer of ownership or operation of the refinery ‘‘upon the execution by the transferee of a modification to this Consent Decree, which makes the terms and conditions of this Consent Decree applicable to the transferee.’’ Under the proposed First Modification, Limetree Bay Terminals, LLC, Limetree Bay Refining, LLC and the Environmental Response Trust are being added as parties to the Consent Decree. The proposed First Modification also makes changes to some of the deadlines and injunctive relief obligations required by the 2011 Consent Decree. The Department of Justice will receive, for a period of thirty (30) days from the date of this publication, comments relating to the First Modification. Comments should be addressed to the Assistant Attorney General for the Environmental and Natural Resources Division, and should refer to United States, et al. v. HOVENSA L.L.C., Civil Action No. 1:11cv-00006, D. J. Ref. No. 90–5–2–1– 08229/1. All comments must be submitted no later than thirty days after the publication date of this notice. Comments may be submitted either by email or by mail: To submit comments: By e-mail ....... khammond on DSKJM1Z7X2PROD with NOTICES By mail ........... Send them to: pubcomment-ees.enrd@ usdoj.gov Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, D.C. 20044–7611. During the public comment period, the First Modification may be examined and downloaded at this Department of Justice website: http://www.justice.gov/ enrd/consent-decrees. We will provide a paper copy of the First Modification upon written request and payment of reproduction costs. Please mail your request and payment to: Consent Decree Library, U.S. DOJ—ENRD, P.O. Box 7611, Washington, DC 20044–7611. Please enclose a check in the amount of $39.50 (25 cents per page reproduction cost) payable to the United States Treasury. Susan M. Akers, Assistant Section Chief, Environmental Enforcement Section, Environment & Natural Resources Division. [FR Doc. 2020–19160 Filed 8–28–20; 8:45 am] BILLING CODE 4410–15–P DEPARTMENT OF LABOR Wage and Hour Division Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2021 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, 2021. 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 $10.95 per hour, while 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 $7.65 per hour. DATES: These new rates shall take effect on January 1, 2021. FOR FURTHER INFORMATION CONTACT: Amy DeBisschop, 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: SUMMARY: 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 VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 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: • 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 E:\FR\FM\31AUN1.SGM 31AUN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices 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), http://www.wdol.gov, or any successor site; 1 on all wage 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 1 In 2019, 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. VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 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 $10.80 and $7.55 per hour, respectively. The Department announced these rates on September 19, 2019, 84 FR 49345, and the rates took effect on January 1, 2020. 53851 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, 2021 is therefore $10.95 per hour. III. The 2021 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 II. The 2021 Executive Order Minimum must be paid to tipped employees Wage Rate performing on or in connection with Using the methodology set forth in the covered contracts. Because the cash Executive Order and summarized above, wage for tipped employees reached 70 the Department must first determine the percent of the Executive Order annual percentage increase in the CPI– minimum wage beginning on January 1, W (United States city average, all items, 2018 (i.e., $7.25 per hour compared to not seasonally adjusted), as published $10.35 per hour), future updates to the by BLS, to determine the new Executive cash wage for tipped employees must Order minimum wage rate. In continue to set the rate at 70 percent of calculating the annual percentage the full Executive Order minimum increase in the CPI–W, the Department wage. Seventy percent of the new must compare the CPI–W for the most Executive Order minimum wage rate of recent year available with the CPI–W for $10.95 is $7.67. Because the Executive the preceding year. The Department Order provides that the rate must be therefore compares the percentage rounded to the nearest $0.05, the new change in the CPI–W between the most minimum hourly cash wage for tipped recent year (i.e., the most recent four quarters) and the prior year (i.e., the four workers performing on or in connection with covered contracts beginning quarters preceding the most recent January 1, 2021 is therefore $7.65 per year). The Department then increases hour. the current Executive Order minimum wage rate by the resulting annual IV. Appendices percentage change and rounds to the nearest multiple of $0.05. Appendix A to this notice provides a In order to determine the Executive comprehensive chart of the CPI–W data Order minimum wage rate beginning published by BLS that the Department January 1, 2021, the Department used to calculate the new Executive therefore calculated the CPI–W for the Order minimum wage rate based on the most recent year by averaging the CPI– methodology explained herein. W for the four most recent quarters, Appendix B to this notice sets forth an which consist of the first two quarters updated version of the Executive Order of 2020 and the last two quarters of 2019 poster that the Department published (i.e., July 2019 through June 2020). The with its Final Rule, reflecting the Department then compared that data to updated wage rates that will be in effect the average CPI–W for the preceding beginning January 1, 2021. See 79 FR year, which consists of the first two 60732–33. Pursuant to 29 CFR 10.29, quarters of 2019 and the last two contractors are required to notify all quarters of 2018 (i.e., July 2018 through workers performing on or in connection June 2019). Based on this methodology, with a covered contract of the the Department determined that the applicable minimum wage rate under annual percentage increase in the CPI– W (United States city average, all items, the Executive Order. Contractors with employees covered by the Fair Labor not seasonally adjusted) was 1.432 Standards Act who are performing on or percent. The Department then applied that annual percentage increase of 1.432 in connection with a covered contract may satisfy the notice requirement by percent to the current Executive Order displaying the poster set forth in hourly minimum wage rate of $10.80, which resulted in a wage rate of $10.955 Appendix B in a prominent or accessible place at the worksite. (($10.80 × 0.01432) + $10.80); however, pursuant to the Executive Order, that PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1 53852 Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices Dated: August 25, 2020. Cheryl M. Stanton, Administrator, Wage and Hour Division. Appendix A: Data Used To Determine Executive Order 13658 Minimum Wage Rate Effective January 1, 2021. wage Earners and Clerical Workers (CPI– W) (United States city average, all items, not seasonally adjusted) Data Source: Consumer Price Index for Urban Quarter 3 Quarter 4 Quarter 1 Quarter 2 2018Q3 to 2019Q2 2019Q3 to 2020Q2 246.155 250.236 246.336 250.112 246.565 250.251 247.038 250.894 245.933 250.644 244.786 250.452 245.133 251.361 246.218 251.935 247.768 251.375 249.332 249.515 249.871 249.521 249.747 251.054 247.0735 250.6125 Annual Percentage Increase ......... .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. 1.432% Appendix B: Updated Version of the Executive Order 13658 Poster BILLING CODE 4510–27–P khammond on DSKJM1Z7X2PROD with NOTICES Annual Average VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1 VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4725 E:\FR\FM\31AUN1.SGM 31AUN1 53853 EN31AU20.000</GPH> khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices 53854 Federal Register / Vol. 85, No. 169 / Monday, August 31, 2020 / Notices scheduling priorities of the key participants. [FR Doc. 2020–19037 Filed 8–28–20; 8:45 am] BILLING CODE 4510–27–C Patricia Rausch, Advisory Committee Management Officer, National Aeronautics and Space Administration. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION [FR Doc. 2020–19166 Filed 8–28–20; 8:45 am] BILLING CODE 7510–13–P [Notice (20–069)] Heliophysics Advisory Committee; Meeting. NATIONAL CREDIT UNION ADMINISTRATION National Aeronautics and Space Administration. ACTION: Notice of meeting. AGENCY: In accordance with the Federal Advisory Committee Act, as amended, the National Aeronautics and Space Administration (NASA) announces a meeting of the Heliophysics Advisory Committee (HPAC). This Committee functions in an advisory capacity to the Director, Heliophysics Division, in the NASA Science Mission Directorate. The meeting will be held for the purpose of soliciting, from the science community and other persons, scientific and technical information relevant to program planning. DATES: Monday, September 21, 2020, 1:00 p.m.–5:00 p.m., Eastern Time. ADDRESSES: Meeting will be virtual only, see dial-in and WebEx information below under SUPPLEMENTARY INFORMATION. SUMMARY: Dr. Janet Kozyra, Designated Federal Officer, Science Mission Directorate, NASA Headquarters, Washington, DC 20546, at janet.kozyra@nasa.gov, 202– 358–1258. SUPPLEMENTARY INFORMATION: This meeting will be open to the public. The meeting will take place telephonically and via WebEx only. Any interested person must use a touch-tone phone to participate in this meeting. Any interested person may call the USA toll free number 1–800–857–9728, or toll number 1–415–228–3890, passcode 5951905 followed by the # sign to participate in this meeting by telephone on both days. The WebEx link is https:// nasaenterprise.webex.com/; the meeting number is 199 049 7836 and the password is SeptHPAC2020! (case sensitive). The agenda for the meeting includes the following topic: • Heliophysics Program Annual Performance Review According to the Government Performance and Results Act Modernization Act. It is imperative that the meeting be held on these dates to accommodate the khammond on DSKJM1Z7X2PROD with NOTICES FOR FURTHER INFORMATION CONTACT: VerDate Sep<11>2014 19:30 Aug 28, 2020 Jkt 250001 Request for Comment Regarding National Credit Union Administration Overhead Transfer Rate Methodology and Operating Fee Schedule Methodology National Credit Union Administration (NCUA). ACTION: Notice; request for comment. AGENCY: The NCUA Board (Board) is inviting comment on the methodology used to determine the Overhead Transfer Rate (OTR). The Board applies the OTR to the NCUA’s operating budget to determine the portion of the budget that will be funded from the National Credit Union Share Insurance Fund (Share Insurance Fund). The Board welcomes all comments but specifically invites comments on the four principles used in the methodology to calculate the OTR as discussed below. The Board is also requesting comment on proposed changes to the methodology it uses to determine how it apportions operating fees charged to federal credit unions (FCUs). The Board uses operating fees to fund part of the NCUA’s annual budget. In this notice, the Board proposes: Clarifying the treatment of capital project budgets when calculating the operating fees; clarifying the treatment of miscellaneous revenues when calculating the operating fees; and modifying the approach for calculating the annual inflationary adjustments to the thresholds for the operating fee rate tiers. The Board solicits comment on these proposed changes and also solicits comment on several questions to gather information on potential future enhancements to the methodology. DATES: Comments must be received on or before October 30, 2020 to be assured of consideration. ADDRESSES: You may submit written comments by any of the following methods (Please send comments by one method only): • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. SUMMARY: PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 • Fax: (703) 518–6319. Include ‘‘[Your Name]—Request for Comment: Operating Fee Schedule Methodology’’ in the transmittal. • Mail: Address to Gerard S. Poliquin, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314– 3428. Public Inspection: You may view all public comments on the Federal eRulemaking Portal at http:// www.regulations.gov as submitted, except for those we cannot post for technical reasons. The NCUA will not edit or remove any identifying or contact information from the public comments submitted. Due to social distancing measures in effect, the usual opportunity to inspect paper copies of comments in the NCUA’s law library is not currently available. After social distancing measures are relaxed, visitors may make an appointment to review paper copies by calling (703) 518–6540 or emailing OGCMail@ncua.gov. FOR FURTHER INFORMATION CONTACT: James Holm, Supervisory Budget Analyst, Office of the Chief Financial Officer, at (703) 518–6570, Amy Ward or Julie Decker, Risk Officers, Office of Examination and Insurance at (703) 819–1770 or (703) 518–6384. SUPPLEMENTARY INFORMATION: The Board has separately proposed amending its rule for determining total assets used as the basis for calculating the operating fee due from any FCU. Members of the public are encouraged to comment on this proposed amendment by responding to the appropriate proposed rule. A proposed rule relating to Fees Paid by Federal Credit Unions is published elsewhere in this issue of the Federal Register. I. Legal Background The NCUA charters, regulates, and insures deposits in FCUs and insures deposits in state-chartered credit unions that have their shares insured through the Share Insurance Fund (FISCUs). To cover expenses related to its tasks, the Board adopts an annual budget in the fall of each year. The Federal Credit Union Act (FCU Act) provides two primary sources to fund the budget: (1) Requisitions from the Share Insurance Fund, referred to as the OTR; 1 and (2) Operating Fees charged against FCUs.2 1 See, e.g., 12 U.S.C. 1783(a) (making the Share Insurance Fund available ‘‘for such administrative and other expenses incurred in carrying out the purpose of [Title II of the FCU Act] as [the Board] may determine to be proper.’’). 2 12 U.S.C. 1755(a) (‘‘In accordance with rules prescribed by the Board, each [FCU] shall pay to the [NCUA] an annual operating fee which may be composed of one or more charges identified as to E:\FR\FM\31AUN1.SGM 31AUN1

Agencies

[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Notices]
[Pages 53850-53854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19037]


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DEPARTMENT OF LABOR

Wage and Hour Division


Establishing a Minimum Wage for Contractors, Notice of Rate 
Change in Effect as of January 1, 2021

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 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, 2021. 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 $10.95 per hour, while 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 $7.65 per hour.

DATES: These new rates shall take effect on January 1, 2021.

FOR FURTHER INFORMATION CONTACT: Amy DeBisschop, 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

[[Page 53851]]

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), http://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\ In 2019, 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 $10.80 and $7.55 per hour, respectively. 
The Department announced these rates on September 19, 2019, 84 FR 
49345, and the rates took effect on January 1, 2020.

II. The 2021 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 
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, 2021, 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 2020 and 
the last two quarters of 2019 (i.e., July 2019 through June 2020). The 
Department then compared that data to the average CPI-W for the 
preceding year, which consists of the first two quarters of 2019 and 
the last two quarters of 2018 (i.e., July 2018 through June 2019). 
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 1.432 percent. The Department then 
applied that annual percentage increase of 1.432 percent to the current 
Executive Order hourly minimum wage rate of $10.80, which resulted in a 
wage rate of $10.955 (($10.80 x 0.01432) + $10.80); 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, 2021 is therefore $10.95 per hour.

III. The 2021 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 $10.95 
is $7.67. 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, 2021 is therefore $7.65 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, 2021. 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.


[[Page 53852]]


    Dated: August 25, 2020.
Cheryl M. Stanton,
Administrator, Wage and Hour Division.

Appendix A: Data Used To Determine Executive Order 13658 Minimum Wage 
Rate Effective January 1, 2021.

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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
2019Q3 to 2020Q2.............................................   250.236   250.112   250.251   250.894   250.644   250.452   251.361   251.935   251.375   249.515   249.521   251.054   250.6125
                                                              ----------------------------------------------------------------------------------------------------------------------------------
    Annual Percentage Increase...............................  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........     1.432%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix B: Updated Version of the Executive Order 13658 Poster

BILLING CODE 4510-27-P

[[Page 53853]]

[GRAPHIC] [TIFF OMITTED] TN31AU20.000


[[Page 53854]]


[FR Doc. 2020-19037 Filed 8-28-20; 8:45 am]
BILLING CODE 4510-27-C