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]

Download as PDF 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 VerDate Sep<11>2014 16:44 Sep 15, 2021 Jkt 253001 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 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 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 E:\FR\FM\16SEN1.SGM 16SEN1 51684 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), 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 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. VerDate Sep<11>2014 16:44 Sep 15, 2021 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 PO 00000 Frm 00036 Fmt 4703 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 E:\FR\FM\16SEN1.SGM 16SEN1 51685 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 .. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. 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: PO 00000 Frm 00037 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. E:\FR\FM\16SEN1.SGM 16SEN1

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]


-----------------------------------------------------------------------

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), 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\ 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).

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Quarter 3
                                                                         Quarter 4
                                                                         Quarter 1
                                                                         Quarter 2             Annual
                                                                                              average
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
                                                              ----------------------------------------------------------------------------------------------------------------------------------
  Annual Percentage Increase.................................  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........     2.567%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2021-19995 Filed 9-15-21; 8:45 am]
BILLING CODE 4510-27-P