FAR 52.222-55 Minimum Wages for Contractor Workers Under Executive Order 14026. Basic (Jan 2022) (Current)

As prescribed in 22.1906, insert the clause at 52.222-55, Minimum Wages for Contractor Workers Under Executive Order 14026, in solicitations and contracts that include the clause at 52.222-6, Construction Wage Rate Requirements, or 52.222-41, Service Contract Labor Standards, where work is to be performed, in whole or in part, in the United States.

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)
 

  (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.

Mandatory (Exception);
Outside U.S. ✖ Supplies ✖   52.244-6   52.212-5 (Applies to solicitations and contracts that include the clause at 52.222-6, Construction Wage Rate Requirements, or 52.222-41, Service Contract Labor Standards, where work is to be performed, in whole or in part, in the United States.)
⚠ =52.222-6 Basic
⚠ =52.222-41 Basic

52.209-10 Prohibition on Contracting with Inverted Domestic Corporations.

52.214-27 Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

52.215-10 Price Reduction for Defective Certified Cost or Pricing Data.

52.216-24 Limitation of Government Liability.

52.222-12 Contract Termination-Debarment.

52.222-50 Combating Trafficking in Persons.

52.228-1 Bid Guarantee.

52.228-8 Liability and Insurance-Leased Motor Vehicles.

52.232-27 Prompt Payment for Construction Contracts.

52.236-23 Responsibility of the Architect-Engineer Contractor.

52.242-3 Penalties for Unallowable Costs.

52.246-16 Responsibility for Supplies.

52.246-18 Warranty of Supplies of a Complex Nature.

52.246-19 Warranty of Systems and Equipment under Performance Specifications or Design Criteria.

52.246-21 Warranty of Construction.

52.247-21 Contractor Liability for Personal Injury and/or Property Damage.

52.247-22 Contractor Liability for Loss of and/or Damage to Freight other than Household Goods.

52.247-23 Contractor Liability for Loss of and/or Damage to Household Goods.

52.247-58 Loading, Blocking, and Bracing of Freight Car Shipments.

52.215-11 Price Reduction for Defective Certified Cost or Pricing Data-Modifications..

252.237-7025 Preaward Transparency Requirements for Firms Offering to Support Department of Defense Audits—Representation and Disclosure.

252.237-7026 Postaward Transparency Requirements for Firms that Support Department of Defense Audits.

252.228-7007 Public Aircraft and State Aircraft Operations—Liability.

252.227-7019 Validation of Asserted Restrictions--Computer Software.

252.227-7037 Validation of Restrictive Markings on Technical Data.

252.247-7007 Liability and Insurance.

252.247-7014 Demurrage.

252.247-7016 Contractor Liability for Loss or Damage.

1852.227-88 Government-furnished computer software and related technical data.

1852.228-70 Aircraft Ground and Flight Risk.

1852.228-71 Aircraft Flight Risks.

1852.228-76 Cross-Waiver of Liability for International Space Station Activities.

1852.228-78 Cross-Waiver of Liability for Science or Space Exploration Activities Unrelated to the International Space Station.

1852.228-80 Insurance - Immunity From Tort Liability.

1852.228-81 Insurance - Partial Immunity From Tort Liability.

1852.228-82 Insurance - Total Immunity From Tort Liability.

1852.236-73 Hurricane Plan.

1852.245-72 Liability for Government property furnished for repair or other services.

1852.245-71 Installation-accountable Government Property.

3052.209-71 Reserve Officer Training Corps and military recruiting on campus.

3052.217-93 Subcontracts (USCG).

3052.217-95 Liability and insurance (USCG).

3052.217-97 Discharge of liens (USCG).

3052.217-99 Department of Labor Safety and Health Regulations for ship repairing (USCG).

3052.217-100 Guarantee (USCG).

3052.222-70 Strikes or picketing affecting timely completion of the contract work.

3052.222-71 Strikes or picketing affecting access to a DHS facility.

5352.223-9001 Health and Safety on Government Installations

5152.225-5900 Arming Requirements and Procedures for Personal Security Services Contractors and Requests for Personal Protection

5152.225-5903 Compliance with Laws and Regulations

5152.228-5900 Government Liability for Non-Tactical Vehicles

5152.225-5902 Fitness for Duty and Medical/Dental Care Limitations

5152.225-5915 CONTRACTOR ACCOUNTABILITY AND PERSONNEL RECOVERY

552.236-73 Subcontracts.

552.211-70 Substantial Completion.

552.211-76 Charges for Packaging, Packing, and Marking.

552.236-80 Accounting Records and Progress Payments.

552.211-89 Non-Manufactured Wood Packaging Material for Export.

552.236-71 Contractor Responsibilities.

552.236-82 Subcontracts.

552.270-7 Fire and Casualty Damage.

652.236-70 Accident Prevention.

1452.204-70 Release of Claims.

1452.236-72 Preservation of historical and archeological data.

1452.228-72 Liability for Loss or Damage - Department of the Interior.

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