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Executive Order -- Minimum Wage for Contractors I The White House Page 2 of 3
<br />(1) $4.90 an hour, beginning on January 1, 2015
<br />00 for each succeeding 1 -year period until the hourly cash wage under this section equals 70 percent of the wage in
<br />effect under section 2 of this order for such periotl, an hourly cash wage equal to the amount determined under this
<br />section for the preceding year, increased by the lesser of:
<br />(A) $0.95; or
<br />(B) the amount necessary for the hourly cash wage under this section to equal 70 percent of the wage under
<br />section 2 of this order; and
<br />(iii) for each subsequent year, 70 percent of the wage in effect under section 2 for such year rounded to the nearest
<br />multiple of $0.05.
<br />(b) Where workers do not receive a sufficient additional amount on account of tips, when combined with the hourly
<br />cash wage paid by the employer, such that their wages are equal to the minimum wage under section 2 of this
<br />order, the cash wage paid by the employer, as set forth in this section for those workers, shall be increased such
<br />that their wages equal the minimum wage under section 2 of this order. Consistent with applicable law, if the wage
<br />required to be paid under the Service Contract Ad, 41 U.S.C. 6701 e seq., or any other applicable law or
<br />regulation is higher than the wage required by section 2, the employer shall pay additional cash wages sufficient to
<br />meet the highest wage required to be paid.
<br />Sec. 4. Regulations and Implementation. (a) The Secretary shall issue regulations by October 1, 2014, to the extent
<br />permitted by law and consistent with the requirements of the Federal Property and Administrative Services Act, to
<br />implement the requirements ofthis order, including providing 3
<br />exclusions from the requirements set forth in this order where appropriate. To the extent permitted by taw, within 60
<br />days of the Secretary issuing such regulations, the Federal Acquisition Regulatory Council shall issue regulations in
<br />the Federal Acquisition Regulation to provide for inclusion of the contract clause in Federal procurement
<br />solicitations and contracts subject to this order.
<br />(b) Within 60 days of the Secretary issuing regulations pursuant to subsection (a) of this section, agencies shall lake
<br />steps, to the extent permitted by law, to exercise any applicable authority to ensure that contracts as described in
<br />section 7(d)(i)(C) and (D) of this order, entered into her January 1, 2015, consistent with the effective dale of such
<br />agency action, comply with the requirements set forth in sections 2 and 3 of this order.
<br />(c) Any regulations issued pursuant to this section should, to the extent practicable and consistent with section 8 of
<br />this order, incorporate existing definitions, procedures, remedies, and enforcement processes under the Fair Labor
<br />Standards Act, 29 U. S. C. 201 e t seq.; the Service Contract Act, 41 U.S.C. 6701 e t seg.; and the Davis -Bacon
<br />Act, 40 U.S.C. 3141 et seq.
<br />Sec. 5. Enforcement. (a) The Secretary shall have the authority for investigating potential violations of and obtaining
<br />compliance with this order.
<br />(b) This order creates no rights under the Contact Disputes Act. and disputes regarding whether contractor has
<br />paid the wages prescribed by this order, to the extent permitted by law, shall be disposed of only as provided by the
<br />Secretary in regulations issued pursuant to this order.
<br />Sec. 6. Severability. If any provision of this order, or applying such provision to any person or circumstance, is held
<br />to be invalid, the remainder of This order and the application of the provisions of such to any person or circumstance
<br />shall not be affected thereby.
<br />Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
<br />(i) the authority granted by law to an agency or the head thereof. or
<br />(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or
<br />legislative proposals.
<br />(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
<br />(c) This order is not intended to, and does not, create any right or benefit, substantive or procedure), enforceable at
<br />law or in equity by any party against the United States, its departments, agencies, or entities, IS officers,
<br />employees, or agents. or any other person.4
<br />(d) This order shall apply only to a new contract or contract -like instrument, as defined by the Secretary in the
<br />regulations issued pursuant to section 4(a) of this order. if:
<br />(i) (A) it is a procurement contract for services or construction;
<br />(B) it is a contract or contract-like instrument for services covered by the Service Contact Act
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