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  • Question

    Please explain this response. Does this mean that the minimum wage starts on January 2024 or at award of a new contract?


    Answer

    Based on my reading of FAR 22.1904 and FAR Clause 52.222-55, the answer is yes to both of your questions.  The current E.O. minimum wage rate must be incorporated at the time of contract award.  Also, when a new annual E.O. minimum wage determination is published after the contract has been awarded, the contractor can request a price adjustment upon the effective date of the new wage determination assuming FAR Clause 52.222-55 is incorporated in the contract.  To determine applicability of this clause to your contract, you can find the clause prescription at FAR 22.1906.  If you have any additional questions about the applicability of the clause or the procedures for making the price adjustment under the clause, you should contract the DOL labor advisor responsible for your region.

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