Federal Register - July 22, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Proposed Rules than $15 per hour. In total, the Department estimated 7,200 workers are affected in these three U.S. territories.
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c. Affected Worker Projections To estimate the number of affected employees in later years, the Department first considered whether workers affected in Year 1 would continue to experience wage increases as a result of this NPRM in Years 2
through 10; the Department assumes they will. In the absence of this NPRM, the Department assumes affected workers wages would increase at the rate required under Executive Order 13658. Therefore, workers affected in Year 1 would continue to experience a higher wage rate than they otherwise would in Years 2 through 10. However, if affected workers wages are growing at a faster rate than the annual increases under Executive Order 13658, then the number of affected workers would decrease each year. The Department believes this assumption may result in a slight overestimate of the number of affected workers in future years.
In addition, the Department accounted for employment growth by using the compounded annual growth rate based on the ten-year employment projection for 2019 to 2029 from the Bureau of Labor Statistics BLS
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Employment Projections program.58 In Year 10, there are 345,600 affected workers. The number of affected workers in Year 1 implicitly takes into account current state minimum wages by looking at the distribution of wage rates paid. If states increase their minimum wages in the future, and the current method is applied to those future years, then affected workers could be somewhat lower than estimated. The Department requests comments on whether there are state minimum wage increases that have been announced but not yet implemented that should be factored into this analysis.
5. Demographics of Employees in the Affected Wage Rate Ranges This section presents demographic and employment characteristics of the general population of workers in the affected wage rate ranges. The Department notes that the demographic characteristics of Federal contractors may differ from the general population in the affected hourly wage rate ranges;
however, data on the demographics of only affected workers are not available.
58 BLS, Employment Projections. 2021. Table 2.1
Employment by Major Industry Sector. https
www.bls.gov/emp/tables.htm.
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These tables include the distribution of workers who earn in the affected wage rate range. The tables also show the distribution of the general workforce. This could be used to identify whether a certain group is more or less likely to be impacted by this proposed rule. For example, if the percentage reported in column 3 is higher than the percentage reported in column 2, then workers in that group are overrepresented.
Table 6 presents the occupation and geographic location of workers currently earning in the affected wage rate range.
The Department found that workers in management, business, and financial occupations are less likely to earn in the wage range potentially impacted by this Executive order 5.1 percent of workers in the affected range are in this occupation compared to 16.1 percent of the general population, while workers in service occupations are significantly more likely to earn in the affected wage range. Workers in the Northeast and Midwest are somewhat less likely to earn in the affected wage range, and workers in the West and South are somewhat more likely to earn in the affected range, but the variation is small.
Workers in non-metropolitan areas are more likely to earn in the affected range.
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