Executive Order on $10.10 Hourly Federal Contractor Minimum Wage, VA Contracts, and VA Webinar

On February 12, 2014, President Obama signed Executive Order 13658, Establishing a Minimum Wage for Contractors.  The Executive Order raises the hourly minimum wage paid by contractors to workers performing on covered Federal contracts to: (i) $10.10 per hour, beginning January 1, 2015; and (ii) beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of the Department of Labor (DOL) in accordance with the Order. On October 1, 2014, DOL published the final rule implementing the provisions of Executive Order 13658.

It is long-standing policy that Medicare (Parts A and B) or Medicaid providers are not considered to be federal contractors. However, if a provider currently has VA patients, they are considered to be a federal contractor. The American Health Care Association (AHCA) held a webinar with officials from the VA last week on issues impacting those with VA contracts, including the $10.10 issue. The full webinar can be found here. AHCA is awaiting answers from DOL, which has jurisdiction over this issue, on how the $10.10 will impact those with VA contracts or those thinking of entering into a VA contract. As soon as AHCA has information from DOL, which should be this week, AHCA will share it with its membership.