52.222-55 Minimum Wages for Contractor

Workers Under Executive Order 14026.

As prescribed in 22.1906 , insert the following clause:

Minimum Wages for Contractor Workers Under Executive Order 14026 (Jan 2022)

(a) Definitions. As used in this clause—

United States means the 50 states, the District of Columbia, Puerto Rico, the Northern Mariana

Islands, American Samoa, Guam, the U.S. Virgin Islands, Johnston Island, Wake Island, and the outer

Continental Shelf as defined in the Outer Continental Shelf Lands Act (43 U.S.C. 1331, et seq.).

Worker –

(1)

(i) Means any person engaged in performing work on, or in connection with, a contract covered by

Executive Order 14026, and–

(A) Whose wages under such contract are governed by the Fair Labor Standards Act

(29 U.S.C. chapter 8), the Service Contract Labor Standards statute (41 U.S.C. chapter 67), or the

Wage Rate Requirements (Construction) statute (40 U.S.C. chapter 31, subchapter IV);

(B) Other than individuals employed in a bona fide executive, administrative, or professional

capacity, as those terms are defined in 29 CFR part 541; and

(C) Regardless of the contractual relationship alleged to exist between the individual and the

employer.

(ii) Includes workers performing on, or in connection with, the contract whose wages are calculated

pursuant to special certificates issued under 29 U.S.C. 214(c).

(iii) Also includes any person working on, or in connection with, the contract and individually

registered in a bona fide apprenticeship or training program registered with the Department of

Labor’s Employment and Training Administration, Office of Apprenticeship, or with a State

Apprenticeship Agency recognized by the Office of Apprenticeship.

(2)

(i) A worker performs on a contract if the worker directly performs the specific services called for by

the contract; and

(ii) A worker performs in connection with a contract if the worker's work activities are necessary to

the performance of a contract but are not the specific services called for by the contract.

(b) Executive Order Minimum wage rate.
(1) The Contractor shall pay to workers, while performing in the United States, and performing on,

or in connection with, this contract, a minimum hourly wage rate of $15.00 per hour beginning

January 30, 2022.

(2) The Contractor shall adjust the minimum wage paid, if necessary, beginning January 1, 2023, and

annually thereafter, to meet the applicable annual E.O. minimum wage. The Administrator of the

Department of Labor’s Wage and Hour Division (the Administrator) will publish annual

determinations in the Federal Register no later than 90 days before the effective date of the new

E.O. minimum wage rate. The Administrator will also publish the applicable E.O. minimum wage on

https://www.sam.gov (or any successor website), and a general notice on all wage determinations

issued under the Service Contract Labor Standards statute or the Wage Rate Requirements

(Construction) statute, that will provide information on the E.O. minimum wage and how to obtain

annual updates. The applicable published E.O. minimum wage is incorporated by reference into this

contract.

(3)

(i) The Contractor may request a price adjustment only after the effective date of the new annual

E.O. minimum wage determination. Prices will be adjusted only for increased labor costs (including

subcontractor labor costs) as a result of an increase in the annual E.O. minimum wage, and for

associated labor costs (including those for subcontractors). Associated labor costs shall include

increases or decreases that result from changes in social security and unemployment taxes and

workers’ compensation insurance, but will not otherwise include any amount for general and

administrative costs, overhead, or profit.

(ii) Subcontractors may be entitled to adjustments due to the new minimum wage, pursuant to

paragraph (b)(2). Contractors shall consider any subcontractor requests for such price adjustment.

(iii) The Contracting Officer will not adjust the contract price under this clause for any costs other

than those identified in paragraph (b)(3)(i) of this clause, and will not provide duplicate price

adjustments with any price adjustment under clauses implementing the Service Contract Labor

Standards statute or the Wage Rate Requirements (Construction) statute.

(4) The Contractor warrants that the prices in this contract do not include allowance for any

contingency to cover increased costs for which adjustment is provided under this clause.

(5) A pay period under this clause may not be longer than semi-monthly, but may be shorter to

comply with any applicable law or other requirement under this contract establishing a shorter pay

period. Workers shall be paid no later than one pay period following the end of the regular pay

period in which such wages were earned or accrued.

(6) The Contractor shall pay, unconditionally to each worker, all wages due free and clear without

subsequent rebate or kickback. The Contractor may make deductions that reduce a worker’s wages

below the E.O. minimum wage rate only if done in accordance with 29 CFR 23.230, Deductions.

(7) The Contractor shall not discharge any part of its minimum wage obligation under this clause by

furnishing fringe benefits or, with respect to workers whose wages are governed by the Service

Contract Labor Standards statute, the cash equivalent thereof.

(8) Nothing in this clause shall excuse the Contractor from compliance with any applicable Federal

or State prevailing wage law or any applicable law or municipal ordinance or any applicable contract

establishing a minimum wage higher than the E.O. 14026 minimum wage. However, wage increases
under such other laws or municipal ordinances are not subject to price adjustment under this

subpart.

(9) The Contractor shall pay the E.O. minimum wage rate whenever it is higher than any applicable

collective bargaining agreement(s) wage rate.

(10) The Contractor shall follow the policies and procedures in 29 CFR 23.240(b) and 23.280 for

treatment of workers engaged in an occupation in which they customarily and regularly receive

more than $30 a month in tips.

(c)

(1) This clause applies to workers as defined in paragraph (a). As provided in that definition–

(i) Workers are covered regardless of the contractual relationship alleged to exist between the

contractor or subcontractor and the worker;

(ii) Workers with disabilities whose wages are calculated pursuant to special certificates issued

under 29 U.S.C. 214(c) are covered; and

(iii) Workers who are registered in a bona fide apprenticeship program or training program

registered with the Department of Labor’s Employment and Training Administration, Office of

Apprenticeship, or with a State Apprenticeship Agency recognized by the Office of Apprenticeship,

are covered.

(2) This clause does not apply to–

(i) Fair Labor Standards Act (FLSA)-covered individuals performing in connection with contracts

covered by the E.O., i.e. those individuals who perform duties necessary to the performance of the

contract, but who are not directly engaged in performing the specific work called for by the

contract, and who spend less than 20 percent of their hours worked in a particular workweek

performing in connection with such contracts;

(ii) Individuals exempted from the minimum wage requirements of the FLSA under 29 U.S.C. 213(a)

and 214(a) and (b), unless otherwise covered by the Service Contract Labor Standards statute, or

the Wage Rate Requirements (Construction) statute. These individuals include but are not limited to-

(A) Learners, apprentices, or messengers whose wages are calculated pursuant to special

certificates issued under 29 U.S.C. 214(a) ;

(B) Students whose wages are calculated pursuant to special certificates issued under

29 U.S.C. 214(b) ; and

(C) Those employed in a bona fide executive, administrative, or professional capacity

(29 U.S.C. 213(a)(1) and 29 CFR part 541).

(d) Notice. The Contractor shall notify all workers performing work on, or in connection with, this

contract of the applicable E.O. minimum wage rate under this clause. With respect to workers

covered by the Service Contract Labor Standards statute or the Wage Rate Requirements

(Construction) statute, the Contractor may meet this requirement by posting, in a prominent and

accessible place at the worksite, the applicable wage determination under those statutes. With

respect to workers whose wages are governed by the FLSA, the Contractor shall post notice,
utilizing the poster provided by the Administrator, which can be obtained at

www.dol.gov/agencies/whd/government-contracts, in a prominent and accessible place at the

worksite. Contractors that customarily post notices to workers electronically may post the notice

electronically provided the electronic posting is displayed prominently on any Web site that is

maintained by the contractor, whether external or internal, and customarily used for notices to

workers about terms and conditions of employment.

(e) Payroll Records.

(1) The Contractor shall make and maintain records, for three years after completion of the work,

containing the following information for each worker:

(i) Name, address, and social security number;

(ii) The worker’s occupation(s) or classification(s);

(iii) The rate or rates of wages paid;

(iv) The number of daily and weekly hours worked by each worker;

(v) Any deductions made; and

(vi) Total wages paid.

(2) The Contractor shall make records pursuant to paragraph (e)(1) of this clause available for

inspection and transcription by authorized representatives of the Administrator. The Contractor

shall also make such records available upon request of the Contracting Officer.

(3) The Contractor shall make a copy of the contract available, as applicable, for inspection or

transcription by authorized representatives of the Administrator.

(4) Failure to comply with this paragraph (e) shall be a violation of 29 CFR 23.260 and this contract.

Upon direction of the Administrator or upon the Contracting Officer's own action, payment shall be

withheld until such time as the noncompliance is corrected.

(5) Nothing in this clause limits or otherwise modifies the Contractor’s payroll and recordkeeping

obligations, if any, under the Service Contract Labor Standards statute, the Wage Rate

Requirements (Construction) statute, the Fair Labor Standards Act, or any other applicable law.

(f) Access. The Contractor shall permit authorized representatives of the Administrator to conduct

investigations, including interviewing workers at the worksite during normal working hours.

(g) Withholding. The Contracting Officer, upon his or her own action or upon written request of the

Administrator, will withhold funds or cause funds to be withheld, from the Contractor under this or

any other Federal contract with the same Contractor, sufficient to pay workers the full amount of

wages required by this clause.

(h) Disputes. Department of Labor has set forth in 29 CFR 23.510, Disputes concerning contractor

compliance, the procedures for resolving disputes concerning a contractor’s compliance with

Department of Labor regulations at 29 CFR part 23. Such disputes shall be resolved in accordance

with those procedures and not the Disputes clause of this contract. These disputes include disputes

between the Contractor (or any of its subcontractors) and the contracting agency, the Department of
Labor, or the workers or their representatives.

(i) Antiretaliation. The Contractor shall not discharge or in any other manner discriminate against

any worker because such worker has filed any complaint or instituted or caused to be instituted any

proceeding under or related to compliance with the E.O. or this clause, or has testified or is about to

testify in any such proceeding.

(j) Subcontractor compliance. The Contractor is responsible for subcontractor compliance with the

requirements of this clause and may be held liable for unpaid wages due subcontractor workers.

(k) Subcontracts. The Contractor shall include the substance of this clause, including this paragraph

(k) in all subcontracts, regardless of dollar value, that are subject to the Service Contract Labor

Standards statute or the Wage Rate Requirements (Construction) statute, and are to be performed in

whole or in part in the United States.

(End of clause)

Parent topic: 52.222 [Reserved]