In an announcement made via a posting in the federal register on September 15, 2017, federal contractors working on or in connection with contracts covered by Executive Order 13658 will have to raise minimum wages to $10.35/hour, beginning January 1. 2018. The wage rate for tipped employees will also increase to $7.25/hour.
Pursuant to the terms of the Executive Order, the U.S. Secretary of Labor reviews the rate on an annual basis to determine whether to increase the wage rate. This is the third increase under the Executive Order which first went into effect January 1, 2015.