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Executive Order -- Minimum Wage for Contractors I The White House <br />Home • Briefing Ronan • Presidential Actions • Eveculiee Orders <br />The White House <br />Office of the Press Secretary <br />For Immediate Release February 12, 2014 <br />Executive Order -- Minimum Wage for Contractors <br />EXECUTIVE ORDER <br />ESTABLISHING MINIMUM WAGE FOR CONTRACTORS <br />By the authority vested in me as President by the Constitution and the laws of the United States of America, <br />including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., and in order to promote <br />economy and efficiency in procurement by contracting With sources who adequately compensate their workers, it is <br />hereby ordered as follows: <br />Section 1. Polity. This order seeks to increase efficiency and cast savings in the work performed by parties who <br />contract with the Federal Government by increasing to $10.10 the hourly minimum wage paid by those contractors. <br />Raising the pay of low -wage workers increases their morale and the productivity and quality of their work, lowers <br />turnover and its accompanying costs, and reduces supervisory costs. These savings and quality improvements will <br />lead to improved economy and efficiency in Government procurement. <br />Sec. 2. Establishing a minimum wage for Federal contractors and subcontractors. (a) Executive departments and <br />agencies (agencies) shall, to the extent permitted by law, ensure that new contracts, contract-like instruments, and <br />solicitations (collectively referred to as "contracts'), as described in section 7 of this order, include a clause, which <br />the contractor and any subcontractors shall incorporate into lower -tier subcontracts. specifying, as a condition of <br />payment, that the minimum wage to be paid to workers, including workers whose wages are calculated pursuant to <br />special certificates issued under 29 U.S.C. 214(c), in the performance of the contract or any subcontract <br />thereunder, shall be at least: <br />(1) $10.10 per hour beginning January 1, 2015: and <br />00 beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor <br />(Secretary). The amount shall be published by the Secretary at least 90 days before such new minimum wage is to <br />take effect and shall be <br />(A) not less than the amount in effect on the date of such deternination; <br />(B) increased from such amount by the annual percentage increase in the Consumer Price Index for Urban Wage <br />Earners and Clerical Workers (United States city average, all items, not seasonally adjusted), or its successor <br />publication, as determined by the Bureau of Labor Statistics; and <br />(C) rounded to the nearest multiple of $0.05. <br />(b) In calculating the annual percentage increase in the Consumer Price Index for purposes of subsection (a)(6)(B) <br />of this Seaton, the Secretary shall compare such Consumer Price Index for the most recent month, quarter, or year <br />available (as selected by the Secretary prior to the first year for Which a minimum wage is in effect pursuant to <br />subsection (a)(ii)(B)) With the Consumer Price Index for the same month in the preceding year, the same quarter in <br />the preceding year, or the preceding year, respectively, <br />(c) Nothing in this order shall excuse noncompliance With any applicable Federal or State prevailing wage law, or <br />any applicable law or municipal ordinance establishing a minimum wage higher than the minimum wage established <br />under this order. <br />See. 3. Application to Upped workers. (a) For workers covered by section 2 of this order Who are Upped employees <br />pursuant to 29 U.S.C. 203(1), the hourly cash Wage that must be paid by an employer to such workers shall be at <br />least <br />Page 1 of 3 <br />CM Email Updates — Cents&Us <br />Search WhimHouse.gov Sea,, It <br />WHITE aoU$ESHABEARL" <br />LATEST BLOG POSTS <br />March 04, 2014 6'.18 PM EST <br />The First lady Honors International <br />Women of Courage <br />First Lady Michelle Obama joins Deputy Secretary <br />of Stale Heather Higginbo tom at the Department <br />of State to honor recipients of the Intemational <br />Women of Courage Award. <br />March 04, 2014 2:02 PM EST <br />President Obanla Announces His 2035 <br />Budget <br />President Obama's 2015 budget provides a <br />"roadmap' for the agenda he laid out in his State of <br />the Union address to restore opportunity for all <br />Americans. <br />Mardi 03. 2014 2:19 PM EST <br />President Obama to Participate in a <br />Townhall on Latinos and the Affordable <br />Care Act <br />The lownhall with President Obama will provide an <br />opportunity for Latinos across the country to learn <br />more about how to enroll in affordable, quality <br />health care via the Health Insurance Marketplace. <br />VIEW ALL RELATED BLDG POSTS 9 <br />Facebook <br />youTube <br />Twitter <br />Vimeo <br />Flickr <br />iTunes <br />Googlet <br />Linkedrn <br />http: / /www.whitehouse.gov /the - press - office/ 2014 /02/12/ executive - order - minimum - wage -co... 3/5/2014 <br />