On September 20, 2016, the U.S. Department of Labor published a notice of the minimum wage rate to be paid, beginning January 1, 2017, to workers performing on or in connection with federal contracts covered by Executive Order (E.O.) 13658, Establishing a Minimum Wage for Contractors. Beginning January 1, 2017, federal contractors must pay covered workers at least $10.20 per hour. The Secretary of Labor also gave notice that beginning January 1, 2017, covered tipped employees performing work on or in connection with covered contracts must be paid a cash wage of at least $6.80 per hour.

Under the E.O., signed on February 12, 2014, contractors were initially required to pay covered workers at least $10.10 per hour as of January 1, 2015.  The E.O. permits the Secretary of Labor to adjust this amount each year. In 2016, the federal contractor minimum wage increased to $10.15 per hour. Additionally, the minimum amount covered tipped employees performing work on or in connection with covered contracts was raised to $5.85 per hour.  The $10.20 per hour rate ($6.80 for tipped employees) is now set for 2017.