80_FR_55825 80 FR 55646 - Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2016

80 FR 55646 - Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2016

DEPARTMENT OF LABOR
Office of the Secretary

Federal Register Volume 80, Issue 179 (September 16, 2015)

Page Range55646-55648
FR Document2015-23235

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 to be paid to workers performing work on or in connection with Federal contracts covered by Executive Order 13658, beginning January 1, 2016. Executive Order 13658, Establishing a Minimum Wage for Contractors (the Executive Order or the Order), was signed by President Barack Obama on February 12, 2014, and raised the hourly minimum wage paid by contractors to workers performing work on covered Federal contracts to: $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor (the Secretary) in accordance with the methodology set forth in the Order. See 79 FR 9851. The Secretary's determination of the Executive Order minimum wage rate also affects the minimum hourly cash wage that must be paid to tipped employees performing work on or in connection with covered contracts beginning January 1, 2016. See 79 FR 9851-52. The Secretary is required to provide notice to the public of the new minimum wage rate at least 90 days before such rate is to take effect. See 79 FR 9851. Pursuant to Executive Order 13658 and its implementing regulations at 29 CFR part 10, notice is hereby given that beginning January 1, 2016, the Executive Order minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts is $10.15 per hour. Notice is also hereby given that, beginning January 1, 2016, the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is $5.85 per hour.

Federal Register, Volume 80 Issue 179 (Wednesday, September 16, 2015)
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)]
[Notices]
[Pages 55646-55648]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23235]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Office of the Secretary


Establishing a Minimum Wage for Contractors, Notice of Rate 
Change in Effect as of January 1, 2016

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 to be paid to workers performing work on 
or in connection with Federal contracts covered by Executive Order 
13658, beginning January 1, 2016.
    Executive Order 13658, Establishing a Minimum Wage for Contractors 
(the Executive Order or the Order), was signed by President Barack 
Obama on February 12, 2014, and raised the hourly minimum wage paid by 
contractors to workers performing work on covered Federal contracts to: 
$10.10 per hour, beginning January 1, 2015; and beginning January 1, 
2016, and annually thereafter, an amount determined by the Secretary of 
Labor (the Secretary) in accordance with the methodology set forth in 
the Order. See 79 FR 9851. The Secretary's determination of the 
Executive Order minimum wage rate also affects the minimum hourly cash 
wage that must be paid to tipped employees performing work on or in 
connection with covered contracts beginning January 1, 2016. See 79 FR 
9851-52. The Secretary is required to provide notice to the public of 
the new minimum wage rate at least 90 days before such rate is to take 
effect. See 79 FR 9851.
    Pursuant to Executive Order 13658 and its implementing regulations 
at 29 CFR part 10, notice is hereby given that beginning January 1, 
2016, the Executive Order minimum wage rate that generally must be paid 
to workers performing work on or in connection with covered contracts 
is $10.15 per hour. Notice is also hereby given that, beginning January 
1, 2016, the required minimum cash wage that generally must be paid to 
tipped employees performing work on or in connection with covered 
contracts is $5.85 per hour.

DATES: This notice is effective on September 16, 2015.

FOR FURTHER INFORMATION CONTACT: Robert Waterman, Acting 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 by President Barack Obama on 
February 12, 2014, and raised the hourly minimum wage paid by 
contractors to workers performing work on or in connection with covered 
Federal contracts to $10.10 per hour, beginning January 1, 2015; and 
beginning January 1, 2016, and annually thereafter, 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.
    The Executive Order and its implementing regulations require the 
Secretary to determine the applicable minimum wage rate to be paid to 
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), 
explain that the applicable minimum wage determined by the Secretary 
for each calendar year shall be:
    (i) Not less than the amount in effect on the date of such 
determination;
    (ii) 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
    (iii) Rounded to the nearest multiple of $0.05.
    Section 2(b) of the Executive Order further provides that, in 
calculating the annual percentage increase in the CPI for purposes of 
determining the new minimum wage rate, the Secretary shall compare such 
CPI 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 for the same month in the preceding year, the same 
quarter in the preceding year, or the preceding year, respectively. See 
79 FR 9851. In order to calculate the annual percentage increase in the 
CPI, the Department elected in its Final Rule

[[Page 55647]]

implementing the Executive Order to compare such CPI for the most 
recent year available with the CPI for 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, in order ``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 to be paid to workers performing work on or in connection 
with covered contracts, the Executive Order 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 is to take 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 is to 
take 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; 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).
    Section 3 of the Executive Order 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. At all times, 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.

II. The 2016 Executive Order Minimum Wage Rate

    In accordance with the methodology set forth in the Executive Order 
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 in order to 
determine the new Executive Order minimum wage rate. In calculating the 
annual percentage increase in the CPI, 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 current Executive Order minimum wage rate must 
then be increased by the resulting annual percentage change and rounded 
to the nearest multiple of $0.05.
    In order to determine the Executive Order minimum wage rate 
beginning January 1, 2016, 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 2015 and 
the last two quarters of 2014 (i.e., July 2014 through June 2015). The 
Department then compared that data to the average CPI-W for the 
preceding year, which consists of the first two quarters of 2014 and 
the last two quarters of 2013 (i.e., July 2013 through June 2014). 
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 0.345%. The Department then applied 
that annual percentage increase of 0.345% to the current Executive 
Order hourly minimum wage rate of $10.10, which resulted in a wage rate 
of $10.13 (($10.10 x .00345) + $10.10); however, pursuant to the 
Executive Order, that rate must be rounded to the nearest multiple of 
$0.05. The new Executive Order minimum wage rate that must generally be 
paid to workers performing on or in connection with covered contracts 
beginning January 1, 2016 is therefore $10.15 per hour.

III. The 2016 Executive Order Minimum Cash Wage for Tipped Employees

    As noted above, section 3 of the Executive Order 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 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). Section 3 of the Executive Order also 
provides a methodology to be utilized each year in determining the 
amount of the minimum hourly cash wage that must be paid to tipped 
employees performing on or in connection with covered contracts. 
Pursuant to the Order, in each succeeding year, beginning January 1, 
2016, the required cash wage increases by $0.95 (or a lesser amount if 
necessary) until it reaches 70 percent of the Executive Order minimum 
wage rate. For subsequent years, the cash wage for tipped employees 
will be 70 percent of the Executive Order minimum wage rate rounded to 
the nearest $0.05.
    In order to determine the minimum hourly cash wage that must be 
paid to tipped employees performing on or in connection with covered 
contracts beginning January 1, 2016, the Department first calculated 
that 70 percent of the new Executive Order minimum wage rate of $10.15 
is $7.11. The Executive Order provides that the current minimum hourly 
cash wage of $4.90 must increase by the lesser of $0.95 or the amount 
necessary for the hourly cash wage to equal 70 percent of the 
applicable Executive Order minimum wage. Because $0.95 is less than 
$2.21 (the amount necessary for the hourly cash wage to reach 70 
percent of $10.15), the hourly cash wage must increase by $0.95.
    The new minimum hourly cash wage that must generally be paid to 
tipped workers performing on or in connection with covered contracts 
beginning January 1, 2016 is therefore $5.85 per hour.

IV. Appendices

    Appendix A to this notice provides a comprehensive chart of the 
CPI-W data published by BLS that the Department utilized to calculate 
the new Executive Order minimum wage rate based on the methodology 
explained herein. Appendix B to this notice sets forth an updated 
version of the Executive Order 13658 poster that the Department

[[Page 55648]]

published with its Final Rule, reflecting the updated wage rates that 
will be in effect beginning January 1, 2016. See 79 FR 60732-33. 
Pursuant to 29 CFR 10.29, contractors are required to notify all 
workers performing on or in connection with a covered contract of the 
applicable minimum wage rate under the Executive Order. Contractors 
with employees covered by the Fair Labor Standards Act who are 
performing on or in connection with a covered contract may satisfy the 
notice requirement by displaying the poster set forth in Appendix B in 
a prominent or accessible place at the worksite.

    Dated: September 9, 2015.
David Weil,
Wage and Hour Administrator.

Appendix A
Appendix B
[FR Doc. 2015-23235 Filed 9-15-15; 8:45 am]
 BILLING CODE 4510-27-P



                                                    55646                            Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices

                                                                                                                                                                                                                                                   Final adjusted
                                                                                                                                         Basic class                                                                                                2015 quotas
                                                                                                                                                                                                                                                         (g)

                                                                                                                                                    List I Chemicals

                                                    Ephedrine (for conversion) ............................................................................................................................................................             1,000,000
                                                    Ephedrine (for sale) .......................................................................................................................................................................        4,000,000
                                                    Phenylpropanolamine (for conversion) ..........................................................................................................................................                    44,800,000
                                                    Phenylpropanolamine (for sale) .....................................................................................................................................................                8,500,000
                                                    Pseudoephedrine (for conversion) ................................................................................................................................................                       7,000
                                                    Pseudoephedrine (for sale) ...........................................................................................................................................................            224,500,000



                                                      Aggregate production quotas for all                                     before such rate is to take effect. See 79                                 engaging in notice-and-comment
                                                    other schedule I and II controlled                                        FR 9851.                                                                   rulemaking, the Department published a
                                                    substances included in 21 CFR 1308.11                                       Pursuant to Executive Order 13658                                        Final Rule on October 7, 2014 to
                                                    and 1308.12 remain at zero.                                               and its implementing regulations at 29                                     implement the Executive Order. See 79
                                                      Dated: September 10, 2015.                                              CFR part 10, notice is hereby given that                                   FR 60634. The final regulations, set
                                                    Chuck Rosenberg,
                                                                                                                              beginning January 1, 2016, the                                             forth at 29 CFR part 10, established
                                                                                                                              Executive Order minimum wage rate                                          standards and procedures for
                                                    Acting Administrator.
                                                                                                                              that generally must be paid to workers                                     implementing and enforcing the
                                                    [FR Doc. 2015–23199 Filed 9–15–15; 8:45 am]
                                                                                                                              performing work on or in connection                                        minimum wage protections of the
                                                    BILLING CODE 4410–09–P
                                                                                                                              with covered contracts is $10.15 per                                       Order.
                                                                                                                              hour. Notice is also hereby given that,                                       The Executive Order and its
                                                                                                                              beginning January 1, 2016, the required                                    implementing regulations require the
                                                    DEPARTMENT OF LABOR                                                       minimum cash wage that generally must                                      Secretary to determine the applicable
                                                                                                                              be paid to tipped employees performing                                     minimum wage rate to be paid to
                                                    Office of the Secretary                                                                                                                              workers performing work on or in
                                                                                                                              work on or in connection with covered
                                                    Establishing a Minimum Wage for                                           contracts is $5.85 per hour.                                               connection with covered contracts on an
                                                    Contractors, Notice of Rate Change in                                     DATES: This notice is effective on                                         annual basis, beginning January 1, 2016.
                                                    Effect as of January 1, 2016                                              September 16, 2015.                                                        See 79 FR 9851; 29 CFR 10.1(a)(2),
                                                                                                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                                                         10.5(a)(2), 10.12(a). Sections 2(a) and (b)
                                                    AGENCY: Wage and Hour Division,                                           Robert Waterman, Acting Director,                                          of the Order establish the methodology
                                                    Department of Labor.                                                      Division of Regulations, Legislation, and                                  that the Secretary must use to determine
                                                    ACTION: Notice.                                                           Interpretation, Wage and Hour Division,                                    the annual inflation-based increases to
                                                                                                                                                                                                         the minimum wage rate. See 79 FR
                                                    SUMMARY:   The Wage and Hour Division                                     U.S. Department of Labor, Room S–
                                                                                                                                                                                                         9851. These provisions, which are
                                                    (WHD) of the U.S. Department of Labor                                     3502, 200 Constitution Avenue NW.,
                                                                                                                                                                                                         implemented in 29 CFR 10.5(b), explain
                                                    (the Department) is issuing this notice to                                Washington, DC 20210; telephone: (202)
                                                                                                                                                                                                         that the applicable minimum wage
                                                    announce the applicable minimum                                           693–0406 (this is not a toll-free
                                                                                                                                                                                                         determined by the Secretary for each
                                                    wage rate to be paid to workers                                           number). Copies of this notice may be
                                                                                                                                                                                                         calendar year shall be:
                                                    performing work on or in connection                                       obtained in alternative formats (Large                                        (i) Not less than the amount in effect
                                                    with Federal contracts covered by                                         Print, Braille, Audio Tape, or Disc),                                      on the date of such determination;
                                                    Executive Order 13658, beginning                                          upon request, by calling (202) 693–0023                                       (ii) Increased from such amount by
                                                    January 1, 2016.                                                          (not a toll-free number). TTY/TTD                                          the annual percentage increase in the
                                                       Executive Order 13658, Establishing a                                  callers may dial toll-free (877) 889–5627                                  Consumer Price Index for Urban Wage
                                                    Minimum Wage for Contractors (the                                         to obtain information or request                                           Earners and Clerical Workers (CPI–W)
                                                    Executive Order or the Order), was                                        materials in alternative formats.                                          (United States city average, all items,
                                                    signed by President Barack Obama on                                       SUPPLEMENTARY INFORMATION:                                                 not seasonally adjusted), or its successor
                                                    February 12, 2014, and raised the hourly                                                                                                             publication, as determined by the
                                                                                                                              I. Executive Order 13658 Background
                                                    minimum wage paid by contractors to                                                                                                                  Bureau of Labor Statistics (BLS); and
                                                                                                                              and Requirements for Determining
                                                    workers performing work on covered                                                                                                                      (iii) Rounded to the nearest multiple
                                                    Federal contracts to: $10.10 per hour,                                    Annual Increases to the Minimum
                                                                                                                                                                                                         of $0.05.
                                                    beginning January 1, 2015; and                                            Wage Rate
                                                                                                                                                                                                            Section 2(b) of the Executive Order
                                                    beginning January 1, 2016, and annually                                      Executive Order 13658 was signed by                                     further provides that, in calculating the
                                                    thereafter, an amount determined by the                                   President Barack Obama on February                                         annual percentage increase in the CPI
                                                    Secretary of Labor (the Secretary) in                                     12, 2014, and raised the hourly                                            for purposes of determining the new
                                                    accordance with the methodology set                                       minimum wage paid by contractors to                                        minimum wage rate, the Secretary shall
                                                    forth in the Order. See 79 FR 9851. The                                   workers performing work on or in                                           compare such CPI for the most recent
                                                    Secretary’s determination of the                                          connection with covered Federal                                            month, quarter, or year available (as
                                                    Executive Order minimum wage rate                                         contracts to $10.10 per hour, beginning                                    selected by the Secretary prior to the
asabaliauskas on DSK7TPTVN1PROD with NOTICES




                                                    also affects the minimum hourly cash                                      January 1, 2015; and beginning January                                     first year for which a minimum wage is
                                                    wage that must be paid to tipped                                          1, 2016, and annually thereafter, an                                       in effect) with the CPI for the same
                                                    employees performing work on or in                                        amount determined by the Secretary                                         month in the preceding year, the same
                                                    connection with covered contracts                                         pursuant to the Order. See 79 FR 9851.                                     quarter in the preceding year, or the
                                                    beginning January 1, 2016. See 79 FR                                      The Executive Order directed the                                           preceding year, respectively. See 79 FR
                                                    9851–52. The Secretary is required to                                     Secretary to issue regulations to                                          9851. In order to calculate the annual
                                                    provide notice to the public of the new                                   implement the Order’s requirements.                                        percentage increase in the CPI, the
                                                    minimum wage rate at least 90 days                                        See 79 FR 9852. Accordingly, after                                         Department elected in its Final Rule


                                               VerDate Sep<11>2014         18:18 Sep 15, 2015         Jkt 235001      PO 00000       Frm 00059       Fmt 4703       Sfmt 4703      E:\FR\FM\16SEN1.SGM              16SEN1


                                                                            Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices                                         55647

                                                    implementing the Executive Order to                     the employee must equal at least the                  III. The 2016 Executive Order
                                                    compare such CPI for the most recent                    difference between the cash wage paid                 Minimum Cash Wage for Tipped
                                                    year available with the CPI for the                     and the Executive Order minimum                       Employees
                                                    preceding year. See 29 CFR                              wage; if the employee does not receive          As noted above, section 3 of the
                                                    10.5(b)(2)(iii). In its Final Rule, the                 sufficient tips, the contractor must         Executive Order requires contractors to
                                                    Department explained that it decided to                 increase the cash wage paid so that the      pay tipped employees covered by the
                                                    compare the CPI–W for the most recent                   cash wage in combination with the tips       Order performing on or in connection
                                                    year available (instead of using the most               received equals the Executive Order          with covered contracts an hourly cash
                                                    recent month or quarter, as allowed by                  minimum wage. Id.                            wage of at least $4.90, beginning January
                                                    the Order) with the CPI–W for the
                                                                                                            II. The 2016 Executive Order Minimum 1, 2015, provided the employees receive
                                                    preceding year, in order ‘‘to minimize
                                                                                                            Wage Rate                                    sufficient tips to equal the Executive
                                                    the impact of seasonal fluctuations on
                                                                                                               In accordance with the methodology        Order minimum wage rate under section
                                                    the Executive Order minimum wage
                                                                                                            set forth in the Executive Order and         2 of the Order when combined with the
                                                    rate.’’ 79 FR 60666.
                                                       Once a determination has been made                   summarized above, the Department             cash wage. See 79 FR 9851–52; 29 CFR
                                                    with respect to the new minimum wage                    must first determine the annual              10.28(a). Section 3 of the Executive
                                                    rate to be paid to workers performing                   percentage increase in the CPI–W             Order also provides a methodology to be
                                                    work on or in connection with covered                   (United States city average, all items,      utilized each year in determining the
                                                    contracts, the Executive Order and its                  not seasonally adjusted) as published by amount of the minimum hourly cash
                                                    implementing regulations require the                    BLS in order to determine the new            wage that must be paid to tipped
                                                    Secretary to notify the public of the                   Executive Order minimum wage rate. In employees performing on or in
                                                    applicable minimum wage rate on an                      calculating the annual percentage            connection with covered contracts.
                                                    annual basis at least 90 days before any                increase in the CPI, the Department          Pursuant to the Order, in each
                                                    new minimum wage is to take effect.                     must compare the CPI–W for the most          succeeding year, beginning January 1,
                                                    See 79 FR 9851; 29 CFR 10.5(a)(2),                      recent year available with the CPI–W for 2016, the required cash wage increases
                                                    10.12(c)(1). The regulations explain that               the preceding year. The Department           by $0.95 (or a lesser amount if
                                                    the Administrator of the Department’s                   therefore compares the percentage            necessary) until it reaches 70 percent of
                                                    Wage and Hour Division (the                             change in the CPI–W between the most         the Executive Order minimum wage
                                                    Administrator) will publish an annual                   recent year (i.e., the most recent four      rate. For subsequent years, the cash
                                                    notice in the Federal Register stating                  quarters) and the prior year (i.e., the four wage for tipped employees will be 70
                                                    the applicable minimum wage rate at                     quarters preceding the most recent           percent of the Executive Order
                                                    least 90 days before any new minimum                    year). The current Executive Order           minimum wage rate rounded to the
                                                    wage is to take effect. See 29 CFR                      minimum wage rate must then be               nearest $0.05.
                                                    10.12(c)(2)(i). Additionally, the                       increased by the resulting annual               In order to determine the minimum
                                                    regulations state that the Administrator                percentage change and rounded to the         hourly cash wage that must be paid to
                                                    will provide notice of the Executive                    nearest multiple of $0.05.                   tipped employees performing on or in
                                                    Order minimum wage rate on Wage                            In order to determine the Executive       connection with covered contracts
                                                    Determinations OnLine (WDOL), http://                   Order minimum wage rate beginning            beginning January 1, 2016, the
                                                    www.wdol.gov, or any successor site; on                 January 1, 2016, the Department              Department first calculated that 70
                                                    all wage determinations issued under                    therefore calculated the CPI–W for the       percent of the new Executive Order
                                                    the Davis-Bacon Act (DBA), 40 U.S.C.                    most recent year by averaging the CPI–       minimum wage rate of $10.15 is $7.11.
                                                    3141 et seq., and the Service Contract                  W for the four most recent quarters,         The Executive Order provides that the
                                                    Act (SCA), 41 U.S.C. 6701 et seq.; and                  which consist of the first two quarters      current minimum hourly cash wage of
                                                    by other means the Administrator                        of 2015 and the last two quarters of 2014 $4.90 must increase by the lesser of
                                                    deems appropriate. See 29 CFR                           (i.e., July 2014 through June 2015). The     $0.95 or the amount necessary for the
                                                    10.12(c)(2)(ii)–(iv).                                   Department then compared that data to        hourly cash wage to equal 70 percent of
                                                       Section 3 of the Executive Order                     the average CPI–W for the preceding          the applicable Executive Order
                                                    requires contractors to pay tipped                      year, which consists of the first two        minimum wage. Because $0.95 is less
                                                    employees covered by the Order                          quarters of 2014 and the last two            than $2.21 (the amount necessary for the
                                                    performing on or in connection with                     quarters of 2013 (i.e., July 2013 through    hourly cash wage to reach 70 percent of
                                                    covered contracts an hourly cash wage                   June 2014). Based on this methodology,       $10.15), the hourly cash wage must
                                                    of at least $4.90, beginning on January                 the Department determined that the           increase by $0.95.
                                                    1, 2015, provided the employees receive                 annual percentage increase in the CPI–          The new minimum hourly cash wage
                                                    sufficient tips to equal the Executive                  W (United States city average, all items, that must generally be paid to tipped
                                                    Order minimum wage rate under section                   not seasonally adjusted) was 0.345%.         workers performing on or in connection
                                                    2 of the Order when combined with the                   The Department then applied that             with covered contracts beginning
                                                    cash wage. See 79 FR 9851–52; 29 CFR                    annual percentage increase of 0.345% to January 1, 2016 is therefore $5.85 per
                                                    10.28(a). The Order further provides                    the current Executive Order hourly           hour.
                                                    that, in each succeeding year, beginning                minimum wage rate of $10.10, which
                                                                                                            resulted in a wage rate of $10.13            IV. Appendices
                                                    January 1, 2016, the required cash wage
                                                    must increase by $0.95 (or a lesser                     (($10.10 × .00345) + $10.10); however,          Appendix A to this notice provides a
asabaliauskas on DSK7TPTVN1PROD with NOTICES




                                                    amount if necessary) until it reaches 70                pursuant to the Executive Order, that        comprehensive chart of the CPI–W data
                                                    percent of the Executive Order                          rate must be rounded to the nearest          published by BLS that the Department
                                                    minimum wage. Id. For subsequent                        multiple of $0.05. The new Executive         utilized to calculate the new Executive
                                                    years, the cash wage for tipped                         Order minimum wage rate that must            Order minimum wage rate based on the
                                                    employees will be 70 percent of the                     generally be paid to workers performing methodology explained herein.
                                                    Executive Order minimum wage                            on or in connection with covered             Appendix B to this notice sets forth an
                                                    rounded to the nearest $0.05. Id. At all                contracts beginning January 1, 2016 is       updated version of the Executive Order
                                                    times, the amount of tips received by                   therefore $10.15 per hour.                   13658 poster that the Department


                                               VerDate Sep<11>2014   18:18 Sep 15, 2015   Jkt 235001   PO 00000   Frm 00060   Fmt 4703   Sfmt 4703   E:\FR\FM\16SEN1.SGM   16SEN1


                                                    55648                    Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices

                                                    published with its Final Rule, reflecting               remain in effect until further notice.                   You may contact NARA’s GRS Team
                                                    the updated wage rates that will be in                  Previously published outpatient                       (within Records Management Services
                                                    effect beginning January 1, 2016. See 79                medical and dental, and cosmetic                      in the National Records Management
                                                    FR 60732–33. Pursuant to 29 CFR 10.29,                  surgery rates remain in effect until                  Program, Office of the Chief Records
                                                    contractors are required to notify all                  further notice. Pharmacy rates are                    Officer) with general questions about
                                                    workers performing on or in connection                  updated periodically. A full disclosure               the GRS at GRS_Team@nara.gov.
                                                    with a covered contract of the                          of the rates is posted on Defense Health                 Your agency’s records officer may
                                                    applicable minimum wage rate under                      Agency’s Uniform Business Office Web                  contact the NARA appraiser or records
                                                    the Executive Order. Contractors with                   site: http://www.tricare.mil/ocfo/mcfs/               analyst with whom your agency
                                                    employees covered by the Fair Labor                     ubo/mhs_rates.cfm.                                    normally works for support in carrying
                                                    Standards Act who are performing on or                                                                        out this transmittal and the revised
                                                                                                            Shaun Donovan,
                                                    in connection with a covered contract                                                                         portions of the GRS. We have posted a
                                                    may satisfy the notice requirement by                   Director, Office Management and Budget.
                                                                                                                                                                  list of the appraisal and scheduling
                                                    displaying the poster set forth in                      [FR Doc. 2015–23254 Filed 9–15–15; 8:45 am]
                                                                                                                                                                  work group and regional contacts on our
                                                    Appendix B in a prominent or                            BILLING CODE P                                        Web site at http://www.archives.gov/
                                                    accessible place at the worksite.                                                                             records-mgmt/appraisal/index.html.
                                                      Dated: September 9, 2015.                                                                                   SUPPLEMENTARY INFORMATION:
                                                    David Weil,                                             NATIONAL ARCHIVES AND RECORDS
                                                                                                            ADMINISTRATION                                        What is GRS Transmittal 25?
                                                    Wage and Hour Administrator.
                                                                                                                                                                    GRS Transmittal 25 is the issuing
                                                    Appendix A                                              [NARA–2015–062]
                                                                                                                                                                  memo for newly-revised portions of the
                                                    Appendix B
                                                    [FR Doc. 2015–23235 Filed 9–15–15; 8:45 am]             Records Management; General                           General Records Schedule (GRS). We
                                                                                                            Records Schedule (GRS); GRS                           are completely rewriting the GRS over
                                                    BILLING CODE 4510–27–P
                                                                                                            Transmittal 25; Email Managed Under                   the course of a five-year project. We
                                                                                                            a Capstone Approach                                   published the master plan for that
                                                                                                                                                                  project in 2013 under records
                                                    OFFICE OF MANAGEMENT AND                                AGENCY: National Archives and Records                 management memo AC 02.2013 (http://
                                                    BUDGET                                                  Administration (NARA)                                 www.archives.gov/records-mgmt/
                                                    Fiscal Year 2015 Cost of Hospital and                   ACTION: Notice of new General Records                 memos/ac02-2013.html). We have
                                                    Medical Care Treatment Furnished by                     Schedule (GRS) Transmittal 25                         changed some details in the plan, but its
                                                    the Department of Defense Medical                                                                             major outlines remain solid. Transmittal
                                                                                                            SUMMARY:   NARA is issuing a new                      23 was the first installment of the new
                                                    Treatment Facilities; Certain Rates
                                                                                                            General Records Schedule (GRS) via                    GRS; Transmittal 24 was the second.
                                                    Regarding Recovery From Tortiously
                                                                                                            GRS Transmittal 25. The GRS provides                  GRS Transmittal 25 issues additions to
                                                    Liable Third Persons
                                                                                                            agencies with mandatory disposition                   the GRS that we have made since we
                                                    AGENCY: Executive Office of the                         instructions for administrative records               published GRS Transmittal 24 in August
                                                    President, Office of Management and                     common to several or all Federal                      2015. However, schedules published in
                                                    Budget.                                                 agencies. Transmittal 25 announces                    GRS Transmittal 24 are still active.
                                                    ACTION: Notice.                                         changes we have made to the GRS since
                                                                                                            we published Transmittal 24 in August                 What does Transmittal 25 contain and
                                                    SUMMARY:    By virtue of the authority                  2015. We are concurrently                             how do I use it?
                                                    vested in the President by Section 2(a)                 disseminating Transmittal 25 (the memo                  GRS Transmittal 25 contains one new
                                                    of Pub. B. 87–603 (76 Stat. 593; 42                     and the accompanying records schedule                 schedule: GRS 6.1, Email Managed
                                                    U.S.C. 2652), and delegated to the                      and FAQ document) directly to each                    under a Capstone Approach, and an
                                                    Director of the Office of Management                    agency’s records management official                  accompanying frequently-asked-
                                                    and Budget (OMB) by the President                       and have posted it on NARA’s Web site.                questions (FAQ) document. Transmittal
                                                    through Executive Order No. 11541 of                    DATES: This transmittal is effective the              25 does not supersede GRS Transmittal
                                                    July 1, 1970, the rates referenced below                date it publishes in the Federal                      24; you should use it in concert with
                                                    are hereby established. These rates are                 Register.                                             Transmittal 24, which publishes all
                                                    for use in connection with the recovery                                                                       other GRSs.
                                                    from tortiously liable third persons for                ADDRESSES:   You can find this
                                                                                                            transmittal on NARA’s Web site at                     Why does this transmittal not republish
                                                    the cost of inpatient medical services
                                                                                                            http://www.archives.gov/records-mgmt/                 all previously approved GRS schedules
                                                    furnished by military treatment facilities
                                                                                                            grs/. You can download the complete                   as have previous transmittals?
                                                    through the Department of Defense.
                                                    They are the same rates as the Adjusted                 current GRS, in PDF format, from                        We issued Transmittal 24 just a few
                                                    Standardized Amounts inpatient third                    NARA’s Web site at http://                            weeks ago, on August 18, 2015. Because
                                                    party reimbursement rates that became                   www.archives.gov/records-mgmt/                        that transmittal superseded a
                                                    effective October 1, 2014, for billing                  grs.html (however, please remember in                 considerable number of old GRS items,
                                                    medical insurers, but require a different               this case to download both Transmittal                we permitted agencies six months in
                                                    approval authority for the purpose of                   24 and 25 if you want the complete                    which to take certain actions required to
asabaliauskas on DSK7TPTVN1PROD with NOTICES




                                                    billing for tort liability. The rates have              GRS).                                                 update their manuals. Transmittal 24
                                                    been established in accordance with the                 FOR FURTHER INFORMATION CONTACT:   For                needs to remain a separate publication
                                                    requirements of OMB Circular A–25,                      more information about this notice or to              until that six months has elapsed so that
                                                    requiring reimbursement of the full cost                obtain paper copies of the GRS, contact               agencies can be clear on the
                                                    of all services provided. The Fiscal Year               Kimberly Keravuori, External Policy                   responsibilities arising from that
                                                    2015 Inpatient Medical Rates referenced                 Program Manager, at regulation_                       document. We will incorporate the new
                                                    are effective upon publication of this                  comments@nara.gov, or by telephone at                 schedule from Transmittal 25, along
                                                    notice in the Federal Register and will                 301.837.3151.                                         with the schedules contained in


                                               VerDate Sep<11>2014   18:18 Sep 15, 2015   Jkt 235001   PO 00000   Frm 00061   Fmt 4703   Sfmt 4703   E:\FR\FM\16SEN1.SGM   16SEN1



Document Created: 2018-02-26 10:16:33
Document Modified: 2018-02-26 10:16:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThis notice is effective on September 16, 2015.
ContactRobert Waterman, Acting 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.
FR Citation80 FR 55646 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR