Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2021, 53850-53854 [2020-19037]
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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
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Susan M. Akers,
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Enforcement Section, Environment & Natural
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[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
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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
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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), https://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.
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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
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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 .........
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1.432%
Appendix B: Updated Version of the
Executive Order 13658 Poster
BILLING CODE 4510–27–P
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Annual
Average
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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
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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: https://
www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
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• 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 https://
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
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]]>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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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), 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).
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\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.
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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)
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Quarter 3
Quarter 4
Quarter 1
Quarter 2 Annual
Average
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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
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Annual Percentage Increase............................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 1.432%
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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
