Subpart 22.19
Increasing the Minimum Wage for Contractors
FAR Subpart 22.19 requires federal contractors to pay covered workers at least the annually adjusted minimum wage set by Executive Order and mandates strict compliance through contract clauses and enforcement.
Overview
FAR Subpart 22.19 implements Executive Orders that establish a minimum wage for certain workers performing on or in connection with federal contracts. This subpart outlines the policy, applicability, definitions, annual wage adjustments, enforcement mechanisms, and required contract clauses related to the minimum wage for contractors. It ensures that covered employees working on federal contracts receive at least the minimum wage set by the applicable Executive Order, which is updated annually. The subpart also details how the minimum wage is enforced and the procedures for including the relevant clause in contracts.
Key Rules
- Scope and Definitions
- Defines which contracts and workers are covered and provides key terms used throughout the subpart.
- Policy and Applicability
- Establishes the requirement for contractors to pay the minimum wage and specifies which contracts and employees are subject to the rule.
- Annual Minimum Wage Rate
- Requires annual adjustments to the minimum wage based on Executive Order guidance.
- Enforcement
- Outlines procedures for investigating complaints, remedies for violations, and penalties for non-compliance.
- Contract Clause
- Mandates inclusion of a specific clause in applicable contracts to ensure compliance.
Responsibilities
- Contracting Officers: Must include the minimum wage clause in applicable contracts and ensure compliance.
- Contractors: Must pay covered workers at least the minimum wage and comply with recordkeeping and reporting requirements.
- Agencies: Oversee enforcement, investigate complaints, and ensure contractors adhere to the requirements.
Practical Implications
- Ensures fair wages for workers on federal contracts.
- Contractors must monitor annual wage updates and adjust payroll accordingly.
- Non-compliance can result in penalties, payment withholdings, or contract termination.