82 FR 43408 - Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2018

DEPARTMENT OF LABOR
Office of the Secretary

Federal Register Volume 82, Issue 178 (September 15, 2017)

Page Range		43408-43412
FR Document		2017-19668

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, 2018. Executive Order 13658, Establishing a Minimum Wage for Contractors (the Executive Order or the Order), was signed 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. 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. The applicable minimum wage under Executive Order 13658 is currently $10.20 per hour, in effect since January 1, 2017. See 81 FR 64513. The applicable minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is currently $6.80 per hour, in effect since January 1, 2017. Id. Pursuant to Executive Order 13658 and its implementing regulations at 29 CFR part 10, notice is hereby given that beginning January 1, 2018, the Executive Order minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $10.35 per hour. Notice is also hereby given that, beginning January 1, 2018, the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $7.25 per hour.

Federal Register, Volume 82 Issue 178 (Friday, September 15, 2017)

[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43408-43412]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-19668]

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DEPARTMENT OF LABOR

Office of the Secretary

Establishing a Minimum Wage for Contractors, Notice of Rate
Change in Effect as of January 1, 2018

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

[[Page 43409]]

with Federal contracts covered by Executive Order 13658, beginning
January 1, 2018.
Executive Order 13658, Establishing a Minimum Wage for Contractors
(the Executive Order or the Order), was signed 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. 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. The applicable
minimum wage under Executive Order 13658 is currently $10.20 per hour,
in effect since January 1, 2017. See 81 FR 64513. The applicable
minimum cash wage that generally must be paid to tipped employees
performing work on or in connection with covered contracts is currently
$6.80 per hour, in effect since January 1, 2017. Id.
Pursuant to Executive Order 13658 and its implementing regulations
at 29 CFR part 10, notice is hereby given that beginning January 1,
2018, the Executive Order minimum wage rate that generally must be paid
to workers performing work on or in connection with covered contracts
will increase to $10.35 per hour. Notice is also hereby given that,
beginning January 1, 2018, the required minimum cash wage that
generally must be paid to tipped employees performing work on or in
connection with covered contracts will increase to $7.25 per hour.

DATES: This notice is effective on September 15, 2017.

FOR FURTHER INFORMATION CONTACT: Melissa Smith, 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 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-W for purposes of
determining the new minimum wage rate, the Secretary shall compare such
CPI-W 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-W 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-W, the Department elected in its Final
Rule implementing the Executive Order to compare such CPI-W for the
most recent year available with the CPI-W 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

[[Page 43410]]

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.
On September 20, 2016, the Administrator published a notice in the
Federal Register informing the public that, effective January 1, 2017,
the Executive Order minimum wage and the minimum cash wage required to
be paid to tipped employees covered by the Executive Order would be
$10.20 and $6.80 per hour, respectively. See 81 FR 64513.

II. The 2018 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, 2018, 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 2017 and
the last two quarters of 2016 (i.e., July 2016 through June 2017). The
Department then compared that data to the average CPI-W for the
preceding year, which consists of the first two quarters of 2016 and
the last two quarters of 2015 (i.e., July 2015 through June 2016).
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 1.691 percent. The Department then
applied that annual percentage increase of 1.691 percent to the current
Executive Order hourly minimum wage rate of $10.20, which resulted in a
wage rate of $10.37 (($10.20 x .01691) + $10.20); 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, 2018 is therefore $10.35 per hour.

III. The 2018 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, 2018, the Department first calculated
that 70 percent of the new Executive Order minimum wage rate of $10.35
is $7.25, which is $0.45 more than the current minimum cash wage of
$6.80 per hour. The Executive Order provides that the current minimum
hourly cash wage of $6.80 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 $0.45 (the amount
necessary for the hourly cash wage to reach 70 percent of $10.35) is
less than $0.95, the hourly cash wage must increase by $0.45.
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, 2018 is therefore $7.25 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
published with its Final Rule, reflecting the updated wage rates that
will be in effect beginning January 1, 2018. 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 6, 2017.
Patricia Davidson,
Deputy Administrator for Program Operations, Wage and Hour Division.

Appendix A: Data Used To Determine Executive Order 13658 Minimum Wage
Rate Effective January 1, 2018

Data Source: Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) (United States city average, all items, not
seasonally adjusted).

[[Page 43411]]

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Quarter 3
Quarter 4
Quarter 1
Quarter 2 Annual
average
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2015Q3 to 2016Q2............................................. 233.806 233.366 232.661 232.373 231.721 230.791 231.061 230.972 232.209 233.438 234.436 235.289 232.6769
2016Q3 to 2017Q2............................................. 234.771 234.904 235.495 235.732 235.215 235.390 236.854 237.477 237.656 238.432 238.609 238.813 236.6123
----------------------------------------------------------------------------------------------------------------------------------
Annual Percentage Increase............................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ 1.691
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BILLING CODE 4510-27-P

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[FR Doc. 2017-19668 Filed 9-14-17; 8:45 am]
BILLING CODE 4510-27-C

43408 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices

unsubmitted and untested kits have Dated: September 12, 2017. events, or $7,000 for one day events,
emerged in jurisdictions across the Melody Braswell, will not apply to such requests for
country (e.g., Peterson and Hickman, Department Clearance Officer for PRA, U.S. designated counties where a federal
2005; Strom et al., 2009). The Bureau of Department of Justice. major disaster has been declared by the
Justice Assistance (BJA) established the [FR Doc. 2017–19641 Filed 9–14–17; 8:45 am] President. Acceptable uses of Stand
Sexual Assault Kit Initiative (SAKI) to BILLING CODE 4410–18–P Down grant funds have not changed.
provide assistance to jurisdictions who Applicants may expend these funds
are addressing these issues. In FY 2015, over a period not to exceed September
20 sites were funded through SAKI to DEPARTMENT OF LABOR 30, 2018, or if funded after October 1,
engage in reforms intended to improve 2017, applicants may expend these
the national response to sexual assault Fiscal Year (FY) 2016 Through FY 2017 funds over a period not to exceed
cases. Stand Down Grant Requests September 20, 2019, the statutory life of
The objectives of the current study are the appropriated funds.
to conduct an evaluability assessment of AGENCY: Veterans’ Employment and The Secretary hereby declares that
all 20 FY 2015 sites to determine their Training Service (VETS), Department of entities proposing to conduct Stand
readiness to participate in an evaluation Labor. Down events in areas impacted by the
of the SAKI and to develop a ACTION: Amendment to Federal following disasters may apply for funds
comprehensive and rigorous evaluation Register, 80 FR 80390 (Dec. 24, 2015) in amounts up to $50,000: (1) Within
plan to ultimately determine the extent [FR Doc. 2015–32406 Filed 12–23–15; those designated counties in Texas,
to which SAKI reforms have resulted in 8:45 a.m.]. This amendment extends parishes in Louisiana, or counties in
intended (and/or unintended) system funding for Stand Down events to other States, where a federal major
changes. The evaluability assessment December 31, 2017, contingent upon disaster has been declared by the
data collection process will include funding availability, and extends the President on account of Hurricane
visits to the 20 sites, which will be award ceiling to $50,000 for Stand Harvey, Tropical Storm Harvey, or
comprised of individual and group Down events planned to take place in related storm systems, or in
interviews with a maximum of 20 certain designated counties where a geographical areas to which a
respondents per site. federal major disaster has been declared substantial number of veterans from
The types of respondents who will be by the President and where the those declared counties or parishes have
asked to respond to requests for Secretary has determined circumstances been relocated; and (2) within those
interviews will include the SAKI Site appropriate for an increased award designated counties, municipalities, or
Coordinator, representatives from ceiling. districts in Florida, Puerto Rico, and the
sectors involved in working groups (e.g., U.S. Virgin Islands, or counties in other
SUMMARY: This notice amends 80 FR States, where a federal major disaster
law enforcement, forensic medical 80390 (Dec. 24, 2015) [FR Doc. 2015–
personnel, forensic laboratory has been declared by the President on
32406 Filed 12–23–15; 8:45 a.m.]. The account of Hurricane Irma, Tropical
personnel, prosecutors, victim revised language is below:
advocates, victim treatment providers), Storm Irma, or related storm systems, or
specialized staff (e.g., cold case IV. Award Information in geographical areas to which a
detectives, police administrative In recognition of the substantial scale substantial number of veterans from
support, victim compensation staff). of such disasters as Hurricane Harvey, those declared counties, municipalities,
5. An estimate of the total number of the Secretary has determined it or districts have been relocated.
respondents and the amount of time appropriate, in certain circumstances FOR FURTHER INFORMATION CONTACT:
estimated for an average respondent to where a federal major disaster has been Thomas Martin, Grant Officer, Office of
respond: The estimated average burden declared, to allow entities proposing to Grants Management, at (202) 693-2989,
for a respondent completing a site visit conduct Stand Down events in areas Martin.Thomas@dol.gov.
interview is approximately 60 minutes. impacted by those disasters to apply for Sam Shellenberger,
A maximum of 20 respondents will be funds in amounts up to $50,000. It is Deputy Assistant Secretary, Veterans’
interviewed, either individually or in anticipated that this expanded ceiling Employment and Training Service.
groups, at each of the 20 sites. will be most often provided on account [FR Doc. 2017–19664 Filed 9–14–17; 8:45 am]
Therefore, the total number of estimated of disasters that are similar in scale to BILLING CODE 4510–79–P
respondents for the entire evaluability such events as Hurricane Harvey and
site visit data collection is 400 (20 sites that impact substantial populations. In
× 20 respondents per site). such circumstances, as declared by the DEPARTMENT OF LABOR
6. An estimate of the total public Secretary in writing, entities proposing
burden (in hours) associated with the to conduct Stand Down events (1) Office of the Secretary
collection: The maximum estimated within those designated counties where
public burden associated with this a federal major disaster has been Establishing a Minimum Wage for
collection is 400 hours. It is estimated declared by the President, or (2) in Contractors, Notice of Rate Change in
that each of the 400 site visit interviews geographical areas to which a Effect as of January 1, 2018
will take 60 minutes to complete (400 substantial number of veterans from AGENCY: Wage and Hour Division,
respondents × 60 minutes = 400 hours). those declared counties have been Department of Labor.
If additional information is required relocated, may apply for a one-time
mstockstill on DSK30JT082PROD with NOTICES

ACTION: Notice.
contact: Melody Braswell, Department request for funds in amounts up to
Clearance Officer, United States $50,000 through December 31, 2017. SUMMARY: The Wage and Hour Division
Department of Justice, Justice Applications will be processed and (WHD) of the U.S. Department of Labor
Management Division, Policy and awarded subject to availability of (the Department) is issuing this notice to
Planning Staff, Two Constitution funding. The general maximum award announce the applicable minimum
Square, 145 N Street NE., 3E.405A, amounts of $10,000 per applicant per wage rate to be paid to workers
Washington, DC 20530. fiscal year for multiple day Stand Down performing work on or in connection

VerDate Sep<11>2014 17:07 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\15SEN1.SGM 15SEN1

43410 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices

must increase by $0.95 (or a lesser (i.e., July 2016 through June 2017). The beginning January 1, 2018, the
amount if necessary) until it reaches 70 Department then compared that data to Department first calculated that 70
percent of the Executive Order the average CPI–W for the preceding percent of the new Executive Order
minimum wage. Id. For subsequent year, which consists of the first two minimum wage rate of $10.35 is $7.25,
years, the cash wage for tipped quarters of 2016 and the last two which is $0.45 more than the current
employees will be 70 percent of the quarters of 2015 (i.e., July 2015 through minimum cash wage of $6.80 per hour.
Executive Order minimum wage June 2016). Based on this methodology, The Executive Order provides that the
rounded to the nearest $0.05. Id. At all the Department determined that the current minimum hourly cash wage of
times, the amount of tips received by annual percentage increase in the CPI– $6.80 must increase by the lesser of
the employee must equal at least the W (United States city average, all items, $0.95 or the amount necessary for the
difference between the cash wage paid not seasonally adjusted) was 1.691 hourly cash wage to equal 70 percent of
and the Executive Order minimum percent. The Department then applied the applicable Executive Order
wage; if the employee does not receive that annual percentage increase of 1.691 minimum wage. Because $0.45 (the
sufficient tips, the contractor must percent to the current Executive Order amount necessary for the hourly cash
increase the cash wage paid so that the hourly minimum wage rate of $10.20, wage to reach 70 percent of $10.35) is
cash wage in combination with the tips which resulted in a wage rate of $10.37 less than $0.95, the hourly cash wage
received equals the Executive Order (($10.20 × .01691) + $10.20); however, must increase by $0.45.
minimum wage. Id. pursuant to the Executive Order, that The new minimum hourly cash wage
On September 20, 2016, the rate must be rounded to the nearest that must generally be paid to tipped
Administrator published a notice in the multiple of $0.05. workers performing on or in connection
Federal Register informing the public The new Executive Order minimum
with covered contracts beginning
that, effective January 1, 2017, the wage rate that must generally be paid to
January 1, 2018 is therefore $7.25 per
Executive Order minimum wage and the workers performing on or in connection
hour.
minimum cash wage required to be paid with covered contracts beginning
to tipped employees covered by the January 1, 2018 is therefore $10.35 per IV. Appendices
Executive Order would be $10.20 and hour.
$6.80 per hour, respectively. See 81 FR Appendix A to this notice provides a
III. The 2018 Executive Order comprehensive chart of the CPI–W data
64513.
Minimum Cash Wage for Tipped published by BLS that the Department
II. The 2018 Executive Order Minimum Employees utilized to calculate the new Executive
Wage Rate As noted above, section 3 of the Order minimum wage rate based on the
In accordance with the methodology Executive Order requires contractors to methodology explained herein.
set forth in the Executive Order and pay tipped employees covered by the Appendix B to this notice sets forth an
summarized above, the Department Order performing on or in connection updated version of the Executive Order
must first determine the annual with covered contracts an hourly cash 13658 poster that the Department
percentage increase in the CPI–W wage of at least $4.90, beginning January published with its Final Rule, reflecting
(United States city average, all items, 1, 2015, provided the employees receive the updated wage rates that will be in
not seasonally adjusted) as published by sufficient tips to equal the Executive effect beginning January 1, 2018. See 79
BLS in order to determine the new Order minimum wage rate under section FR 60732–33. Pursuant to 29 CFR 10.29,
Executive Order minimum wage rate. In 2 of the Order when combined with the contractors are required to notify all
calculating the annual percentage cash wage. See 79 FR 9851–52; 29 CFR workers performing on or in connection
increase in the CPI, the Department 10.28(a). Section 3 of the Executive with a covered contract of the
must compare the CPI–W for the most Order also provides a methodology to be applicable minimum wage rate under
recent year available with the CPI–W for utilized each year in determining the the Executive Order. Contractors with
the preceding year. The Department amount of the minimum hourly cash employees covered by the Fair Labor
therefore compares the percentage wage that must be paid to tipped Standards Act who are performing on or
change in the CPI–W between the most employees performing on or in in connection with a covered contract
recent year (i.e., the most recent four connection with covered contracts. may satisfy the notice requirement by
quarters) and the prior year (i.e., the four Pursuant to the Order, in each displaying the poster set forth in
quarters preceding the most recent succeeding year, beginning January 1, Appendix B in a prominent or
year). The current Executive Order 2016, the required cash wage increases accessible place at the worksite.
minimum wage rate must then be by $0.95 (or a lesser amount if Dated: September 6, 2017.
increased by the resulting annual necessary) until it reaches 70 percent of Patricia Davidson,
percentage change and rounded to the the Executive Order minimum wage Deputy Administrator for Program
nearest multiple of $0.05. rate. For subsequent years, the cash Operations, Wage and Hour Division.
In order to determine the Executive wage for tipped employees will be 70
Order minimum wage rate beginning percent of the Executive Order Appendix A: Data Used To Determine
January 1, 2018, the Department minimum wage rate rounded to the Executive Order 13658 Minimum Wage
therefore calculated the CPI–W for the nearest $0.05. Rate Effective January 1, 2018
most recent year by averaging the CPI– In order to determine the minimum Data Source: Consumer Price Index for
W for the four most recent quarters, hourly cash wage that must be paid to Urban Wage Earners and Clerical Workers
mstockstill on DSK30JT082PROD with NOTICES

which consist of the first two quarters tipped employees performing on or in (CPI–W) (United States city average, all
of 2017 and the last two quarters of 2016 connection with covered contracts items, not seasonally adjusted).

VerDate Sep<11>2014 17:07 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\15SEN1.SGM 15SEN1

$Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 43411 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Annual average 2015Q3 to 2016Q2 233.806 233.366 232.661 232.373 231.721 230.791 231.061 230.972 232.209 233.438 234.436 235.289 232.6769 2016Q3 to 2017Q2 234.771 234.904 235.495 235.732 235.215 235.390 236.854 237.477 237.656 238.432 238.609 238.813 236.6123 Annual Per- centage In- crease ......... .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. .............. 1.691 BILLING CODE 4510–27–P mstockstill on DSK30JT082PROD with NOTICES VerDate Sep<11>2014 17:07 Sep 14, 2017 Jkt 241001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\15SEN1.SGM 15SEN1$

Document Created: 2017-09-15 00:18:33
Document Modified: 2017-09-15 00:18:33

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		This notice is effective on September 15, 2017.
Contact		Melissa Smith, 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 Citation		82 FR 43408

82 FR 43408 - Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2018

DEPARTMENT OF LABOROffice of the Secretary

Federal Register Volume 82, Issue 178 (September 15, 2017)

DEPARTMENT OF LABOR
Office of the Secretary