On January 13, the U.S. Department of Labor’s Wage and Hour Division published Field Assistance Bulletin (FAB) No. 2022-1 clarifying the requirements of Executive Order (EO) 14026 that increases the hourly minimum wage for certain federal contractors to $15 effective January 30, 2022.
The FAB identifies four categories of contracts covered by the EO; one being procurement contracts for construction covered by the Davis-Bacon Act (DBA). It also defines the geographic scope of the EO’s application as including the fifty States or the District of Columbia as well as in Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Wake Island, and Johnston Island.
The FAB further identifies workers covered by the EO as
- Workers whose wages under the contract are governed by the FLSA, SCA, or DBA
- Workers employed on or in connection with a covered contract
Additionally, the FAB provides information on worker notice requirements, subcontractor requirements, recordkeeping requirements and anti-retaliation provisions and remedies.
Executive Order 14026 applies to new contracts, and renewals and extensions of existing contracts, beginning Jan. 30, 2022.