Magazine article The Small Business Advocate

Advocacy Roundtable Examines Proposed Minimum Wage Rules

Magazine article The Small Business Advocate

Advocacy Roundtable Examines Proposed Minimum Wage Rules

Article excerpt

The Office of Advocacy hosted a roundtable discussion on July 9 to gather input regarding a proposed Department of Labor (DOL) rule. The proposed rule implements Executive Order 13658, signed by President Barack Obama in February, which would raise the minimum wage to $10.10 for all federal contractors, subcontractors and their workers starting January 1, 2015. Advocacy held an earlier listening session on the executive order in April.

Advocacy held the roundtable to receive comments and feedback from small businesses which may be significantly affected by the new minimum wage requirements. DOL has stated that that there are over 300,000 small federal contractors who may be impacted by this rule.

Overwhelmingly, participants at the roundtable commented that the proposed rule is confusing and extremely financially burdensome. Participants included contractors from the services, food and hospitality, outdoor recreation, and construction industries. DOL representatives were also in attendance to give a presentation about the proposed rule.

As explained by the DOL representatives, the proposed rule would affect four major categories of contractual agreements: Procurement contracts for construction covered by the Davis-Bacon Act (DBA); service contracts covered by the Service Contract Act (SCA); concessions contracts, including any concessions contract excluded from the SCA by DOL regulations; and contracts in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public.

Several participants were owners of small fast food franchises on military bases. …

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