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lotter on DSK11XQN23PROD with PROPOSALS2

Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Proposed Rules contract clause, 29 CFR 4.6n, sets forth the certifications of eligibility the contractor makes by entering into the contract. Paragraph i1 stipulates that by entering into the contract, the contractor and its officials will be certifying that neither the contractor, the certifying officials, nor any person or firm with an interest in the contractors firm is a person or firm ineligible to be awarded Federal contracts pursuant to section 5 of the SCA, section 3a of the DBA, or 29 CFR 5.12a1. Paragraph i2 constitutes a certification that no part of the contract will be subcontracted to any person or firm ineligible to receive Federal contracts.
Paragraph i3 contains an acknowledgement by the contractor that the penalty for making false statements is prescribed in the U.S. Criminal Code at 18 U.S.C. 1001.
The Department based proposed paragraph j on section 3 of the Executive order. It addressed the employers ability to use a partial wage credit based on tips received by a tipped employee tip credit to satisfy the wage payment obligation under the Executive order. The provision sets the requirements an employer must meet in order to claim a tip credit.
Proposed paragraph k establishes a prohibition on retaliation that the Department derived from the FLSAs antiretaliation provision that is consistent with the Secretarys authority under section 5 of the order to obtain compliance with the order. It prohibits any person from discharging or discriminating against a worker because such worker has filed any complaint or instituted or caused to be instituted any proceeding under or related to Executive Order 14026 or part 23, or has testified or is about to testify in any such proceeding. The Department proposes to interpret the prohibition on retaliation in paragraph k in accordance with its interpretation of the analogous FLSA provision.
Proposed paragraph l is based on section 5b of the Executive order. It accordingly provides that disputes related to the application of the Executive order to the contract will not be subject to the contracts general disputes clause. Instead, such disputes will be resolved in accordance with the dispute resolution process set forth in 29 CFR part 23. Paragraph l also provides that disputes within the meaning of the clause includes disputes between the contractor or any of its subcontractors and the contracting agency, the U.S. Department of Labor, or the workers or their representatives.
Proposed paragraph m relates to the contractors responsibility in providing
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notice to workers of the applicable Executive order minimum wage. The methods of notice contained in proposed paragraph m reflect those contained in proposed 23.290. A full discussion of the methods of notice contained in proposed paragraph m, can accordingly be found in the preamble describing the operation of proposed 23.290.
III. Paperwork Reduction Act The Paperwork Reduction Act of 1995
PRA, 44 U.S.C. 3501 et seq., and its attendant regulations, 5 CFR part 1320, require the Department to consider the agencys need for its information collections, their practical utility, as well as the impact of paperwork and other information collection burdens imposed on the public, and how to minimize those burdens. The PRA
typically requires an agency to provide notice and seek public comments on any proposed collection of information contained in a proposed rule. See 44
U.S.C. 3506c2B; 5 CFR 1320.8.
This rulemaking would affect existing information collection requirements previously approved under Office of Management and Budget OMB control number 12350018 Records to be Kept by EmployersFair Labor Standards Act and OMB control number 1235
0021 Employment Information Form, to the extent that Executive Order 14026
and its higher wage requirements will supersede Executive Order 13658 for contracts entered into, renewed, or extended pursuant to an option or otherwise on or after January 30, 2022
that would otherwise be covered by Executive Order 13658, and newly cover contracts in connection with seasonal recreational services or seasonal recreational equipment rental offered for public use on Federal lands, which are presently exempt from Executive 13658
under Executive Order 13838. As required by the PRA, the Department has submitted information collection revisions to OMB for review to reflect changes that will result from the implementation of Executive Order 14026.
Summary: This rulemaking proposes to enact regulations implementing Executive Order 14026, which establishes a higher minimum wage requirement for certain Federal contracts beginning January 30, 2022
than would otherwise be required by Executive Order 13658. See 86 FR
22835. Specifically, Executive Order 14026 establishes an initial minimum wage requirement of $15.00 per hour and an initial minimum cash wage for tipped employees of $10.50 per hour, both of which the Department expects
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will be higher than the corresponding rates that will be in effect on January 30, 2022 under Executive Order 13658. See 86 FR 2283536. Like Executive Order 13658, Executive Order 14026 requires the Department to update the orders minimum wage requirement each subsequent year to account for inflation.
Id. However, Executive Order 14026
gradually phases out a contractors ability to pay a subminimum cash wage for tipped employees under Executive Order 14026, raising the minimum cash wage for tipped employees to 85 percent of the orders applicable minimum wage on January 1, 2023, and to 100 percent of the orders applicable minimum wage on January 1, 2024. See 86 FR 22836.
Finally, effective January 30, 2022, section 6 of Executive Order 14026
revokes Executive Order 13838. See 86
FR 22836. Executive Order 13838
presently exempts contracts in connection with seasonal recreational services or seasonal recreational equipment rental offered for public use on Federal lands from the minimum wage requirements established under Executive Order 13658. Consequently, these contracts will become subject to the minimum wage requirements of either Executive Order 13658 or Executive Order 14026 as of January 30, 2022, depending on the date that the relevant contract was entered into, renewed, or extended.
Purpose and use: This proposed rule, which implements Executive Order 14026, contains several provisions that could be considered to entail collections of information: 1 The requirement in proposed 23.210 for a contractor and its subcontractors to include the Executive Order 14026 minimum wage contract clause in any covered subcontract; 2 recordkeeping requirements for covered contractors described in proposed 23.260a; 3
the complaint process described in proposed 23.410; and 4 the administrative proceedings described in proposed subpart E.
Proposed subpart C states compliance requirements for contractors covered by Executive Order 14026. Proposed 23.210 states that the contractor and any subcontractor, as a condition of payment, must abide by the Executive order minimum wage contract clause and must include in any covered subcontracts the minimum wage contract clause in any lower-tier subcontracts. Proposed 23.260
describes recordkeeping requirements for contractors subject to Executive Order 14026. Finally, proposed 23.290
includes a notice requirement, requiring contractors to notify all workers performing work on or in connection
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