44906 Federal Register / Vol. 83, No. 171 / Tuesday, September 4, 2018 / Notices 

be included in each type of notice and 

further authorize the Secretary of Labor 

to prescribe (1) how notice to 

participants and beneficiaries must be 

given and (2) any additional reporting 

requirements deemed necessary. 

ERISA Technical Release 91–1 

provides guidance on how to satisfy the 

subject ERISA notice requirements. The 

Release made two changes in the 

statutory requirements for the second 

type of notice. First, it required the 

notice to include a filing date and the 

intended asset transfer date. The Release 

also simplified the statutory filing 

requirements by providing that filing 

with the DOL would be deemed 

sufficient notice to both the DOL and 

the Department of the Treasury. ERISA 

section 101(e) authorizes this 

information collection. See 29 U.S.C. 

1021(e). 

This information collection is subject 

to the PRA. A Federal agency generally 

cannot conduct or sponsor a collection 

of information, and the public is 

generally not required to respond to an 

information collection, unless it is 

approved by the OMB under the PRA 

and displays a currently valid OMB 

Control Number. In addition, 

notwithstanding any other provisions of 

law, no person shall generally be subject 

to penalty for failing to comply with a 

collection of information that does not 

display a valid Control Number. See 5 

CFR 1320.5(a) and 1320.6. The DOL 

obtains OMB approval for this 

information collection under Control 

Number 1210–0084. 

OMB authorization for an ICR cannot 

be for more than three (3) years without 

renewal, and the DOL seeks to extend 

PRA authorization for this information 

collection for three (3) more years, 

without any change to existing 

requirements. The DOL notes that 

existing information collection 

requirements submitted to the OMB 

receive a month-to-month extension 

while they undergo review. For 

additional substantive information 

about this ICR, see the related notice 

published in the Federal Register on 

April 11, 2018 (83 FR 15635). 

Interested parties are encouraged to 

send comments to the OMB, Office of 

Information and Regulatory Affairs at 

the address shown in the ADDRESSES

section within thirty (30) days of 

publication of this notice in the Federal 

Register. In order to help ensure 

appropriate consideration, comments 

should mention OMB Control Number 

1210–0084. The OMB is particularly 

interested in comments that: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

Agency: DOL–EBSA. 

Title of Collection: Employee 

Retirement Income Security Act of 1974 

Technical Release 1991–1. 

OMB Control Number: 1210–0084. 

Affected Public: Private Sector— 

businesses or other for-profits. 

Total Estimated Number of 

Respondents: 4. 

Total Estimated Number of 

Responses: 26,966. 

Total Estimated Annual Time Burden: 

422 hours. 

Total Estimated Annual Other Costs 

Burden: $6,917. 

Authority: 44 U.S.C. 3507(a)(1)(D). 

Dated: August 27, 2018. 

Michel Smyth, 

Departmental Clearance Officer. 

[FR Doc. 2018–19100 Filed 8–31–18; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Wage and Hour Division 

Establishing a Minimum Wage for 

Contractors, Notice of Rate Change in 

Effect as of January 1, 2019 

AGENCY: Wage and Hour Division, 

Department of Labor. 

ACTION: Notice. 

SUMMARY: The Wage and Hour Division 

(WHD) of the U.S. Department of Labor 

(the Department) is issuing this notice to 

announce the applicable minimum 

wage rate for workers performing work 

on or in connection with federal 

contracts covered by Executive Order 

13658, beginning January 1, 2019. 

Executive Order 13658, Establishing a 

Minimum Wage for Contractors (the 

Executive Order or the Order), was 

signed on February 12, 2014, and raised 

the hourly minimum wage for workers 

performing work on or in connection 

with covered federal contracts to $10.10 

per hour, beginning January 1, 2015, 

with annual adjustments thereafter as 

determined by the Secretary of Labor 

(the Secretary) in accordance with the 

methodology set forth in the Order. The 

Secretary’s determination of the 

Executive Order minimum wage rate 

also affects the minimum hourly cash 

wage for tipped employees performing 

work on or in connection with covered 

contracts. The Secretary is required to 

provide notice to the public of the new 

minimum wage rate at least 90 days 

before the rate takes effect. The 

applicable minimum wage under the 

Executive Order is currently $10.35 per 

hour, in effect since January 1, 2018. 

Pursuant to the Executive Order and 

its implementing regulations in the 

Code of Federal Regulations, notice is 

hereby given that beginning January 1, 

2019, the Executive Order minimum 

wage rate that generally must be paid to 

workers performing work on or in 

connection with covered contracts will 

increase to $10.60 per hour. Notice is 

also hereby given that, beginning 

January 1, 2019, the required minimum 

cash wage that generally must be paid 

to tipped employees performing work 

on or in connection with covered 

contracts will increase to $7.40 per 

hour. 

DATES: These new rates shall take effect 

on January 1, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Melissa Smith, Director, Division of 

Regulations, Legislation, and 

Interpretation, Wage and Hour Division, 

U.S. Department of Labor, Room S– 

3502, 200 Constitution Avenue NW, 

Washington, DC 20210; telephone: (202) 

693–0406 (this is not a toll-free 

number). Copies of this notice may be 

obtained in alternative formats (Large 

Print, Braille, Audio Tape, or Disc), 

upon request, by calling (202) 693–0023 

(not a toll-free number). TTY/TTD 

callers may dial toll-free (877) 889–5627 

to obtain information or request 

materials in alternative formats. 

SUPPLEMENTARY INFORMATION: 

I. Executive Order 13658 Background 

and Requirements for Determining 

Annual Increases to the Minimum 

Wage Rate 

The Executive Order was signed on 

February 12, 2014, and raised the hourly 

minimum wage for workers performing 

work on or in connection with covered 

federal contracts to $10.10 per hour, 

beginning January 1, 2015, with annual 

adjustments thereafter in an amount 

determined by the Secretary pursuant to 

the Order. See 79 FR 9851. The 

Executive Order directed the Secretary 


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to issue regulations to implement the 

Order’s requirements. See 79 FR 9852. 

Accordingly, after engaging in noticeand-comment rulemaking, the 

Department published a Final Rule on 

October 7, 2014 to implement the 

Executive Order. See 79 FR 60634. The 

final regulations, set forth at 29 CFR part 

10, established standards and 

procedures for implementing and 

enforcing the minimum wage 

protections of the Order. 

The Executive Order and its 

implementing regulations require the 

Secretary to determine the applicable 

minimum wage rate for workers 

performing work on or in connection 

with covered contracts on an annual 

basis, beginning January 1, 2016. See 79 

FR 9851; 29 CFR 10.1(a)(2), 10.5(a)(2), 

10.12(a). Sections 2(a) and (b) of the 

Order establish the methodology that 

the Secretary must use to determine the 

annual inflation-based increases to the 

minimum wage rate. See 79 FR 9851. 

These provisions, which are 

implemented in 29 CFR 10.5(b), explain 

that the applicable minimum wage 

determined by the Secretary for each 

calendar year shall be: 

(i) Not less than the amount in effect 

on the date of such determination; 

(ii) Increased from such amount by 

the annual percentage increase in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W) 

(United States city average, all items, 

not seasonally adjusted), or its successor 

publication, as determined by the 

Bureau of Labor Statistics (BLS); and 

(iii) Rounded to the nearest multiple 

of $0.05. 

Section 2(b) of the Executive Order 

further provides that, in calculating the 

annual percentage increase in the CPI– 

W for purposes of determining the new 

minimum wage rate, the Secretary shall 

compare such CPI–W for the most 

recent month, quarter, or year available 

(as selected by the Secretary prior to the 

first year for which a minimum wage is 

in effect) with the CPI–W for the same 

month in the preceding year, the same 

quarter in the preceding year, or the 

preceding year, respectively. See 79 FR 

9851. To calculate the annual 

percentage increase in the CPI–W, the 

Department elected in its Final Rule 

implementing the Executive Order to 

compare such CPI–W for the most 

recent year available with the CPI–W for 

the preceding year. See 29 CFR 

10.5(b)(2)(iii). In its Final Rule, the 

Department explained that it decided to 

compare the CPI–W for the most recent 

year available (instead of using the most 

recent month or quarter, as allowed by 

the Order) with the CPI–W for the 

preceding year, ‘‘to minimize the impact 

of seasonal fluctuations on the 

Executive Order minimum wage rate.’’ 

79 FR 60666. 

Once a determination has been made 

with respect to the new minimum wage 

rate, the Executive Order and its 

implementing regulations require the 

Secretary to notify the public of the 

applicable minimum wage rate on an 

annual basis at least 90 days before any 

new minimum wage takes effect. See 79 

FR 9851; 29 CFR 10.5(a)(2), 10.12(c)(1). 

The regulations explain that the 

Administrator of the Department’s Wage 

and Hour Division (the Administrator) 

will publish an annual notice in the 

Federal Register stating the applicable 

minimum wage rate at least 90 days 

before any new minimum wage takes 

effect. See 29 CFR 10.12(c)(2)(i). 

Additionally, the regulations state that 

the Administrator will provide notice of 

the Executive Order minimum wage rate 

on Wage Determinations OnLine 

(WDOL), http://www.wdol.gov, or any 

successor site; on all wage 

determinations issued under the DavisBacon Act (DBA), 40 U.S.C. 3141 et seq., 

and the Service Contract Act (SCA), 41 

U.S.C. 6701 et seq.; and by other means 

the Administrator deems appropriate. 

See 29 CFR 10.12(c)(2)(ii)–(iv). 

Section 3 of the Executive Order 

requires contractors to pay tipped 

employees covered by the Order 

performing on or in connection with 

covered contracts an hourly cash wage 

of at least $4.90, beginning on January 

1, 2015, provided the employees receive 

sufficient tips to equal the Executive 

Order minimum wage rate under section 

2 of the Order when combined with the 

cash wage. See 79 FR 9851–52; 29 CFR 

10.28(a). The Order further provides 

that, in each succeeding year, beginning 

January 1, 2016, the required cash wage 

must increase by $0.95 (or a lesser 

amount if necessary) until it reaches 70 

percent of the Executive Order 

minimum wage. Id. For subsequent 

years, the cash wage for tipped 

employees will be 70 percent of the 

Executive Order minimum wage 

rounded to the nearest $0.05. Id. At all 

times, the amount of tips received by 

the employee must equal at least the 

difference between the cash wage paid 

and the Executive Order minimum 

wage; if the employee does not receive 

sufficient tips, the contractor must 

increase the cash wage paid so that the 

cash wage in combination with the tips 

received equals the Executive Order 

minimum wage. Id. 

The Executive Order minimum wage 

and the cash wage required for tipped 

employees are currently $10.35 and 

$7.25 per hour, respectively. The 

Department announced these rates on 

September 15, 2017, 82 FR 43408, and 

the rates took effect on January 1, 2018. 

II. The 2019 Executive Order Minimum 

Wage Rate 

Using the methodology set forth in the 

Executive Order and summarized above, 

the Department must first determine the 

annual percentage increase in the CPI– 

W (United States city average, all items, 

not seasonally adjusted), as published 

by BLS, to determine the new Executive 

Order minimum wage rate. In 

calculating the annual percentage 

increase in the CPI–W, the Department 

must compare the CPI–W for the most 

recent year available with the CPI–W for 

the preceding year. The Department 

therefore compares the percentage 

change in the CPI–W between the most 

recent year (i.e., the most recent four 

quarters) and the prior year (i.e., the four 

quarters preceding the most recent 

year). The Department then increases 

the current Executive Order minimum 

wage rate by the resulting annual 

percentage change and rounds to the 

nearest multiple of $0.05. 

In order to determine the Executive 

Order minimum wage rate beginning 

January 1, 2019, the Department 

therefore calculated the CPI–W for the 

most recent year by averaging the CPI– 

W for the four most recent quarters, 

which consist of the first two quarters 

of 2018 and the last two quarters of 2017 

(i.e., July 2017 through June 2018). The 

Department then compared that data to 

the average CPI–W for the preceding 

year, which consists of the first two 

quarters of 2017 and the last two 

quarters of 2016 (i.e., July 2016 through 

June 2017). Based on this methodology, 

the Department determined that the 

annual percentage increase in the CPI– 

W (United States city average, all items, 

not seasonally adjusted) was 2.337 

percent. The Department then applied 

that annual percentage increase of 2.337 

percent to the current Executive Order 

hourly minimum wage rate of $10.35, 

which resulted in a wage rate of $10.592 

(($10.35 × 0.02337) + $10.35); however, 

pursuant to the Executive Order, that 

rate must be rounded to the nearest 

multiple of $0.05. 

The new Executive Order minimum 

wage rate that must generally be paid to 

workers performing on or in connection 

with covered contracts beginning 

January 1, 2019 is therefore $10.60 per 

hour. 

III. The 2019 Executive Order 

Minimum Cash Wage for Tipped 

Employees 

As noted above, section 3 of the 

Executive Order provides a 

methodology to determine the amount 


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of the minimum hourly cash wage that 

must be paid to tipped employees 

performing on or in connection with 

covered contracts. Because the cash 

wage for tipped employees reached 70 

percent of the Executive Order 

minimum wage beginning on January 1, 

2018 (i.e., $7.25 per hour compared to 

$10.35 per hour), future updates to the 

cash wage for tipped employees must 

continue to set the rate at 70 percent of 

the full Executive Order minimum 

wage. Seventy percent of the new 

Executive Order minimum wage rate of 

$10.60 is $7.42. Because the Executive 

Order provides that the rate must be 

rounded to the nearest $0.05, the new 

minimum hourly cash wage for tipped 

workers performing on or in connection 

with covered contracts beginning 

January 1, 2019 is therefore $7.40 per 

hour. 

IV. Appendices 

Appendix A to this notice provides a 

comprehensive chart of the CPI–W data 

published by BLS that the Department 

used to calculate the new Executive 

Order minimum wage rate based on the 

methodology explained herein. 

Appendix B to this notice sets forth an 

updated version of the Executive Order 

poster that the Department published 

with its Final Rule, reflecting the 

updated wage rates that will be in effect 

beginning January 1, 2019. See 79 FR 

60732–33. Pursuant to 29 CFR 10.29, 

contractors are required to notify all 

workers performing on or in connection 

with a covered contract of the 

applicable minimum wage rate under 

the Executive Order. Contractors with 

employees covered by the Fair Labor 

Standards Act who are performing on or 

in connection with a covered contract 

may satisfy the notice requirement by 

displaying the poster set forth in 

Appendix B in a prominent or 

accessible place at the worksite. 

Dated: August, 22, 2018. 

Bryan Jarrett, 

Acting Administrator, Wage and Hour 

Division. 

Appendix A: Data Used To Determine 

Executive Order 13658 Minimum Wage 

Rate Effective January 1, 2019 

Data Source: Consumer Price Index for 

Urban wage Earners and Clerical Workers 

(CPI–W) (United States city average, all 

items, not seasonally adjusted). 

Quarter 3 Quarter 4 Quarter 1 Quarter 2 Annual 

Average 

2016Q3 to 

2017Q2 ......... 234.771 234.904 235.495 235.732 235.215 235.390 236.854 237.477 237.656 238.432 238.609 238.813 236.6123 

2017Q3 to 

2018Q2 ......... 238.617 239.448 240.939 240.573 240.666 240.526 241.919 242.988 243.463 244.607 245.770 246.196 242.1427 

Annual Percentage Increase ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ ................ 2.337% 

Appendix B: Updated Version of the 

Executive Order 13658 Poster 

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[FR Doc. 2018–19166 Filed 8–31–18; 8:45 am] 

BILLING CODE 4510–27–C 


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MINIMUM WAGE 

TIPS 

EXCLUSIONS 

ENFORCEMENT 

ADDITIONAL 

INFORMATION