On Aug. 31, the U.S. Department of Labor’s Wage and Hour Division published a notice in the Federal Register to announce that the minimum wage for federal contractors will increase from $10.80 per hour to $10.95 per hour beginning Jan. 1, 2021.

The increase is a result of the DOL’s 2014 final rule, which implemented Executive Order 13658 on Establishing a Minimum Wage for Contractors and raised the hourly minimum wage paid by contractors to workers on covered federal contracts to $10.10 with annual increases thereafter. This was determined by the secretary of labor in accordance with the methodology set forth in the order.

More information on EO 13658 and the annual wage increase can be found on the DOL website.