Minimum Wage for Federal Contracts Covered by Executive Order 13658, Notice of Rate Change in Effect as of January 1, 2022, 51683-51685 [2021-19995]
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Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices
standards, required by MSHA
regulations and State regulatory
agencies having jurisdiction over the
plugging site will be followed to provide
the upmost protection to the miners
involved in the process.
(21) All miners involved in the
plugging or re-plugging operations will
be trained on the contents of the
Decision and Order prior to starting the
process, and a copy of the Decision and
Order will be posted at the well site
until the plugging or re-plugging has
been completed.
(22) Mechanical bridge plugs should
incorporate the best available
technologies that are either required or
recognized by the State regulatory
agency and/or oil and gas industry.
(23) Within 30 days after the Decision
and Order becomes final, the operator
shall submit proposed revisions for its
approved 30 CFR part 48 training plan
to the District Manager. These proposed
revisions shall include initial and
refresher training on compliance with
the terms and conditions stated in the
Decision and Order. The operator shall
provide all miners involved in well
intersection with training on the
requirements of the Decision and Order
prior to mining within 150 feet of the
next well intended to be mined through.
(24) The responsible person required
under 30 CFR 75.1501 Emergency
Evacuations is responsible for well
intersection emergencies. The well
intersection procedures should be
reviewed by the responsible person
prior to any planned intersection.
(25) Within 30 days after the Decision
and Order becomes final, the operator
shall submit proposed revisions for its
approved mine emergency evacuation
and firefighting program of instruction
required under 30 CFR 75.1502. The
operator will revise the program of
instruction to include the hazards and
evacuation procedures to be used for
well intersections. All underground
miners will be trained in this revised
plan within 30 days of submittal. The
procedure as specified in 30 CFR 48.3
for approval of proposed revisions to
already approved training plans shall
apply.
The petitioner asserts that the
alternate method proposed will at all
times guarantee no less than the same
measure of protection afforded the
miners under the mandatory standard.
Jessica Senk,
Director, Office of Standards, Regulations,
and Variances.
[FR Doc. 2021–19992 Filed 9–15–21; 8:45 am]
BILLING CODE 4520–43–P
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DEPARTMENT OF LABOR
Wage and Hour Division
Minimum Wage for Federal Contracts
Covered by Executive Order 13658,
Notice of Rate Change in Effect as of
January 1, 2022
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, 2022.
Beginning on that date, the Executive
Order 13658 minimum wage rate that
generally must be paid to workers
performing work on or in connection
with covered contracts will increase to
$11.25 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 $7.90 per
hour. Covered contracts that are entered
into on or after January 30, 2022, or that
are renewed or extended (pursuant to an
option or otherwise) on or after January
30, 2022, will be generally subject to a
higher $15.00 minimum wage rate
established by Executive Order 14026 of
April 27, 2021, Increasing the Minimum
Wage for Federal Contractors.
DATES: These new Executive Order
13658 rates shall take effect on January
1, 2022.
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
Executive Order 13658 was signed on
February 12, 2014, and raised the hourly
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51683
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.
Executive Order 13658 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 Executive Order 13658
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. 86, No. 177 / Thursday, September 16, 2021 / 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, Executive Order 13658 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 Executive Order 13658
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. When
a contractor is using a tip credit to meet
1 WDOL.gov moved to https://alpha.sam.gov/
content/wage-determinations. This 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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Jkt 253001
a portion of its wage obligations under
the Executive Order, 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 13658 minimum
wage and the cash wage required for
tipped employees are currently $10.95
and $7.65 per hour, respectively. The
Department announced these rates on
August 31, 2020, 85 FR 53850, and the
rates took effect on January 1, 2021.
II. Effect of Executive Order 14026
On April 27, 2021, President Joseph
R. Biden, Jr. signed Executive Order
14026, Increasing the Minimum Wage
for Federal Contractors. 86 FR 22835.
Beginning January 30, 2022, Executive
Order 14026 establishes a $15.00 hourly
minimum wage for the same types of
contracts with the Federal Government
that are covered by Executive Order
13658. However, Executive Order 14026
only applies to contracts with the
Federal Government that are entered
into on or after January 30, 2022, or that
are renewed or extended (pursuant to an
exercised option or otherwise) on or
after January 30, 2022. For some amount
of time, the Department therefore
anticipates that there will be some
existing contracts with the Federal
Government that do not qualify as a
covered ‘‘new contract’’ for purposes of
Executive Order 14026 and thus will
remain subject to the minimum wage
requirements of Executive Order 13658.
The Department anticipates that, in
the relatively near future, essentially all
covered contracts with the Federal
Government will qualify as ‘‘new’’
contracts under Executive Order 14026
and be subject to its higher minimum
wage rate. Until such time, however,
Executive Order 13658 and its
regulations at 29 CFR part 10 must
remain in place. The Department will
continue announcing annual updates to
Executive Order 13658’s minimum wage
rates for existing contracts still covered
by Executive Order 13658.
III. The 2022 Executive Order 13658
Minimum Wage Rate
Using the methodology set forth in
Executive Order 13658 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
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Sfmt 4703
13658 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 13658 minimum wage rate
beginning January 1, 2022, 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 2021 and the last
two quarters of 2020 (i.e., July 2020
through June 2021). The Department
then compared that data to the average
CPI–W for the preceding year, which
consists of the first two quarters of 2020
and the last two quarters of 2019 (i.e.,
July 2019 through June 2020). 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 2.567 percent. The
Department then applied that annual
percentage increase of 2.567 percent to
the current Executive Order hourly
minimum wage rate of $10.95, which
resulted in a wage rate of $11.231
(($10.95 × 0.02567) + $10.95); however,
pursuant to the Executive Order, that
rate must be rounded to the nearest
multiple of $0.05.
The new Executive Order 13658
minimum wage rate that must generally
be paid to workers performing on or in
connection with covered contracts
beginning January 1, 2022 is therefore
$11.25 per hour.
IV. The 2022 Executive Order 13658
Minimum Cash Wage for Tipped
Employees
As noted above, section 3 of Executive
Order 13658 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 13658 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
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Federal Register / Vol. 86, No. 177 / Thursday, September 16, 2021 / Notices
Executive Order 13658 minimum wage.
Seventy percent of the new Executive
Order 13658 minimum wage rate of
$11.25 is $7.875. 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, 2022 is therefore $7.90 per
hour.
V. Appendix
The Appendix 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 13658 minimum wage
rate based on the methodology
explained herein.
Quarter 3
Quarter 4
Dated: September 9, 2021.
Jessica Looman,
Acting Administrator, Wage and Hour
Division.
Appendix: Data Used To Determine
Executive Order 13658 Minimum Wage
Rate Effective January 1, 2022
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
Quarter 2
Annual
average
2019Q3 to 2020Q2
2020Q3 to 2021Q2
250.236
252.636
250.112
253.597
250.251
254.004
250.894
254.076
250.644
253.826
250.452
254.081
251.361
255.296
251.935
256.843
251.375
258.935
249.515
261.237
249.521
263.612
251.054
266.412
250.6125
257.0463
Annual Percentage Increase ..
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2.567%
[FR Doc. 2021–19995 Filed 9–15–21; 8:45 am]
BILLING CODE 4510–27–P
PENSION BENEFIT GUARANTY
CORPORATION
Submission of Information Collection
for OMB Review; Comment Request;
Survey of Multiemployer Pension Plan
Withdrawal Liability Information
Pension Benefit Guaranty
Corporation.
ACTION: Notice of request for extension
of OMB approval of information
collection.
AGENCY:
The Pension Benefit Guaranty
Corporation (PBGC) is requesting that
the Office of Management and Budget
(OMB) extend approval under the
Paperwork Reduction Act, of a survey of
terminated and insolvent multiemployer
pension plans to obtain withdrawal
liability information. PBGC needs the
withdrawal liability information to
estimate its multiemployer program
liabilities for purposes of its financial
statements. This notice informs the
public of PBGC’s request and solicits
public comment on the collection of
information.
SUMMARY:
Comments must be submitted on
or before October 18, 2021.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
A copy of the request will be posted
on PBGC’s website at www.pbgc.gov/
DATES:
VerDate Sep<11>2014
16:44 Sep 15, 2021
Jkt 253001
prac/laws-and-regulation/federalregister-notices-open-for-comment. It
may also be obtained without charge by
writing to the Disclosure Division of the
Office of the General Counsel of PBGC,
1200 K Street NW, Washington, DC
20005–4026; or, calling 202–229–4040
during normal business hours (TTY
users may call the Federal Relay Service
toll-free at 800–877–8339 and ask to be
connected to 202–229–4040).
FOR FURTHER INFORMATION CONTACT:
Hilary Duke (duke.hilary@pbgc.gov),
Assistant General Counsel for
Regulatory Affairs, Office of the General
Counsel, Pension Benefit Guaranty
Corporation, 1200 K Street NW,
Washington, DC 20005–4026, 202–229–
3839. (TTY users may call the Federal
relay service toll-free at 1–800–877–
8339 and ask to be connected to 202–
229–3839.)
When a
contributing employer withdraws from
an underfunded multiemployer pension
plan, the plan sponsor assesses
withdrawal liability against the
employer. The plan sponsor is required
to determine and collect withdrawal
liability in accordance with section
4219 of the Employee Retirement
Income Security Act of 1974 (ERISA).
The plan sponsor assesses withdrawal
liability by issuing a notice to an
employer, including the amount of the
employer’s liability and a schedule of
payments. PBGC’s regulation on Notice,
Collection, and Redetermination of
Withdrawal Liability (29 CFR part 4219)
requires the plan sponsor to file with
PBGC a certification that notices have
been provided to employers.
PBGC collects information about
withdrawal liability that is owed by
SUPPLEMENTARY INFORMATION:
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Fmt 4703
Sfmt 4703
withdrawn employers of terminated 1
and insolvent 2 multiemployer pension
plans. PBGC distributes annual surveys
that newly insolvent plans receiving
financial assistance and newly
terminated plans not yet receiving
financial assistance are required to
complete and return to PBGC. Smaller
plans with less than 500 participants are
not required to complete the survey.
PBGC needs the information from the
survey about withdrawal liability
payments and settlements, and whether
employers have withdrawn from the
plan but have not yet been assessed
withdrawal liability, to estimate with
more precision PBGC’s multiemployer
program liabilities for purposes of its
financial statements.3 PBGC also uses
the information for its Multiemployer
Pension Insurance Modelling System
assumptions on collection of
withdrawal liability. Information
provided to PBGC is confidential to the
extent provided in the Freedom of
Information Act and the Privacy Act.
The existing collection of information
was approved under OMB control
number 1212–0071 (expires November
30, 2021). On June 23, 2021, PBGC
published in the Federal Register (at 86
1 Under section 4041A(f)(2) of ERISA, PBGC may
prescribe reporting requirements for terminated
multiemployer pension plans, which PBGC
considers appropriate to protect the interests of
plan participants and beneficiaries or to prevent
unreasonable loss to the corporation.
2 Under section 4261(b)(1) of ERISA, PBGC
provides financial assistance under such conditions
as the corporation determines are equitable and are
appropriate to prevent unreasonable loss to the
corporation with respect to the plan.
3 Section 4008 of ERISA requires the corporation,
as soon as practicable after the close of each fiscal
year, to transmit a report to the President and the
Congress, including financial statements setting
forth the finances of the corporation at the end of
the fiscal year and the result of its operations
(including the source and application of its funds)
for the fiscal year.
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]]>Agencies
[Federal Register Volume 86, Number 177 (Thursday, September 16, 2021)]
[Notices]
[Pages 51683-51685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19995]
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DEPARTMENT OF LABOR
Wage and Hour Division
Minimum Wage for Federal Contracts Covered by Executive Order
13658, Notice of Rate Change in Effect as of January 1, 2022
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, 2022. Beginning on that date, the
Executive Order 13658 minimum wage rate that generally must be paid to
workers performing work on or in connection with covered contracts will
increase to $11.25 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 $7.90 per hour.
Covered contracts that are entered into on or after January 30, 2022,
or that are renewed or extended (pursuant to an option or otherwise) on
or after January 30, 2022, will be generally subject to a higher $15.00
minimum wage rate established by Executive Order 14026 of April 27,
2021, Increasing the Minimum Wage for Federal Contractors.
DATES: These new Executive Order 13658 rates shall take effect on
January 1, 2022.
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
Executive Order 13658 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.
Executive Order 13658 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 Executive Order 13658 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 51684]]
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, Executive Order 13658 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\ WDOL.gov moved to https://alpha.sam.gov/content/wage-determinations. This 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 Executive Order 13658 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. When a contractor is
using a tip credit to meet a portion of its wage obligations under the
Executive Order, 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 13658 minimum wage and the cash wage required
for tipped employees are currently $10.95 and $7.65 per hour,
respectively. The Department announced these rates on August 31, 2020,
85 FR 53850, and the rates took effect on January 1, 2021.
II. Effect of Executive Order 14026
On April 27, 2021, President Joseph R. Biden, Jr. signed Executive
Order 14026, Increasing the Minimum Wage for Federal Contractors. 86 FR
22835. Beginning January 30, 2022, Executive Order 14026 establishes a
$15.00 hourly minimum wage for the same types of contracts with the
Federal Government that are covered by Executive Order 13658. However,
Executive Order 14026 only applies to contracts with the Federal
Government that are entered into on or after January 30, 2022, or that
are renewed or extended (pursuant to an exercised option or otherwise)
on or after January 30, 2022. For some amount of time, the Department
therefore anticipates that there will be some existing contracts with
the Federal Government that do not qualify as a covered ``new
contract'' for purposes of Executive Order 14026 and thus will remain
subject to the minimum wage requirements of Executive Order 13658.
The Department anticipates that, in the relatively near future,
essentially all covered contracts with the Federal Government will
qualify as ``new'' contracts under Executive Order 14026 and be subject
to its higher minimum wage rate. Until such time, however, Executive
Order 13658 and its regulations at 29 CFR part 10 must remain in place.
The Department will continue announcing annual updates to Executive
Order 13658's minimum wage rates for existing contracts still covered
by Executive Order 13658.
III. The 2022 Executive Order 13658 Minimum Wage Rate
Using the methodology set forth in Executive Order 13658 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 13658 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 13658 minimum wage rate
beginning January 1, 2022, 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 2021 and
the last two quarters of 2020 (i.e., July 2020 through June 2021). The
Department then compared that data to the average CPI-W for the
preceding year, which consists of the first two quarters of 2020 and
the last two quarters of 2019 (i.e., July 2019 through June 2020).
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 2.567 percent. The Department then
applied that annual percentage increase of 2.567 percent to the current
Executive Order hourly minimum wage rate of $10.95, which resulted in a
wage rate of $11.231 (($10.95 x 0.02567) + $10.95); however, pursuant
to the Executive Order, that rate must be rounded to the nearest
multiple of $0.05.
The new Executive Order 13658 minimum wage rate that must generally
be paid to workers performing on or in connection with covered
contracts beginning January 1, 2022 is therefore $11.25 per hour.
IV. The 2022 Executive Order 13658 Minimum Cash Wage for Tipped
Employees
As noted above, section 3 of Executive Order 13658 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 13658 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
[[Page 51685]]
Executive Order 13658 minimum wage. Seventy percent of the new
Executive Order 13658 minimum wage rate of $11.25 is $7.875. 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, 2022 is therefore $7.90 per hour.
V. Appendix
The Appendix 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 13658 minimum wage rate based on the methodology
explained herein.
Dated: September 9, 2021.
Jessica Looman,
Acting Administrator, Wage and Hour Division.
Appendix: Data Used To Determine Executive Order 13658 Minimum Wage
Rate Effective January 1, 2022
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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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
2020Q3 to 2021Q2............................................. 252.636 253.597 254.004 254.076 253.826 254.081 255.296 256.843 258.935 261.237 263.612 266.412 257.0463
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Annual Percentage Increase................................. ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 2.567%
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[FR Doc. 2021-19995 Filed 9-15-21; 8:45 am]
BILLING CODE 4510-27-P
