impactHR Alert: higher minimum wage for federal contractor employees takes effect

The minimum wage for employees with federal contractors has just increased to $10.15 per hour, effective January 1, 2016. The new wage requirement applies to new and replacement contracts (solicited on or after January 1, 2015) with employers covered by the Service Contract Act or any employer who handles concessions and services in connection with Federal property or lands.

We recommend that employers review the pay rates of their employees and plan any changes necessary to comply with the rate increase.

Also of note for federal contractors: starting this month, employers with federal contracts entered into or modified after January 11, 2016 and totaling more than $10,000 may not discharge or in any other manner discriminate against any employee or applicant because the employee or applicant has disclosed their own compensation or inquired about, discussed or disclosed the compensation of others. Compensation here includes both pay and benefits.

If you have any questions about these two issues of note to government contractors, please contact an impactHR team member via email or phone 410-312-7882.

You can also visit our website for more information about our HR consulting services.