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Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Proposed Rules
will constitute a new contract if, through bilateral negotiation, on or between January 1, 2015 and January 29, 2022:
1 The contract is renewed;
2 The contract is extended, unless the extension is made pursuant to a term in the contract as of December 31, 2014, providing for a short-term limited extension; or 3 The contract is amended pursuant to a modification that is outside the scope of the contract.

10.4

Amended
4. Amend 10.4 by removing paragraph g.
5. Amend 10.5 by adding a sentence at the end of paragraph c to read as follows:

10.5 Minimum wage for Federal contractors and subcontractors.

c A covered contract that is entered into on or after January 30, 2022, or that is renewed or extended pursuant to an option or otherwise on or after January 30, 2022, is generally subject to the higher minimum wage rate established by Executive Order 14026 of April 27, 2021, Increasing the Minimum Wage for Federal Contractors, and its regulations at 29
CFR part 23.
6. Add part 23 to read as follows:
PART 23INCREASING THE MINIMUM
WAGE FOR FEDERAL CONTRACTORS
Subpart AGeneral Sec.
23.10 Purpose and scope.
23.20 Definitions.
23.30 Coverage.
23.40 Exclusions.
23.50 Minimum wage for Federal contractors and subcontractors.
23.60 Antiretaliation.
23.70 Waiver of rights.
23.80 Severability.

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Subpart BFederal Government Requirements 23.110 Contracting agency requirements.
23.120 Department of Labor requirements.
Subpart CContractor Requirements 23.210 Contract clause.
23.220 Rate of pay.
23.230 Deductions.
23.240 Overtime payments.
23.250 Frequency of pay.
23.260 Records to be kept by contractors.
23.270 Anti-kickback.
23.280 Tipped employees.
23.290 Notice.

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Subpart EAdministrative Proceedings 23.510 Disputes concerning contractor compliance.
23.520 Debarment proceedings.
23.530 Referral to Chief Administrative Law Judge; amendment of pleadings.
23.540 Consent findings and order.
23.550 Proceedings of the Administrative Law Judge.
23.560 Petition for review.
23.570 Administrative Review Board proceedings.
23.580 Administrator ruling.
Appendix A to Part 23Contract Clause Authority: 5 U.S.C. 301; section 4, E.O.
14026, 86 FR 22835; Secretarys Order 01
2014, 79 FR 77527.

Subpart AGeneral 23.10

Subpart DEnforcement 23.410 Complaints.
23.420 Wage and Hour Division conciliation.

23.430 Wage and Hour Division investigation.
23.440 Remedies and sanctions.

Purpose and scope.

a Purpose. This part contains the Department of Labors rules relating to the administration of Executive Order 14026 Executive Order or the Order, Increasing the Minimum Wage for Federal Contractors, and implements the enforcement provisions of the Executive Order. The Executive Order assigns responsibility for investigating potential violations of and obtaining compliance with the Executive Order to the Department of Labor.
b Policy. Executive Order 14026
states that the Federal Governments procurement interests in economy and efficiency are promoted when the Federal Government contracts with sources that adequately compensate their workers. Specifically, the Order explains that raising the minimum wage enhances worker productivity and generates higher-quality work by boosting workers health, morale, and effort; reducing absenteeism and turnover; and lowering supervisory and training costs. Accordingly, Executive Order 14026 sets forth a general position of the Federal Government that increasing the hourly minimum wage paid by Federal contractors to $15.00
beginning January 30, 2022, with future annual increases based on inflation will lead to improved economy and efficiency in Federal procurement. The Order provides that executive departments and agencies, including independent establishments subject to the Federal Property and Administrative Services Act, shall, to the extent permitted by law, ensure that new covered contracts, contract-like instruments, and solicitations collectively referred to as contracts include a clause, which the contractor and any covered subcontractors shall incorporate into lower-tier subcontracts,
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specifying, as a condition of payment, that the minimum wage to be paid to workers, including workers whose wages are calculated pursuant to special certificates issued under 29 U.S.C.
214c, performing work on or in connection with the contract or any covered subcontract thereunder, shall be at least:
1 $15.00 per hour beginning January 30, 2022; and 2 Beginning January 1, 2023, and annually thereafter, an amount determined by the Secretary of Labor the Secretary pursuant to the Order.
Nothing in Executive Order 14026 or this part shall excuse noncompliance with any applicable Federal or state prevailing wage law or any applicable law or municipal ordinance establishing a minimum wage higher than the minimum wage established under the Order.
c Scope. Neither Executive Order 14026 nor this part creates or changes any rights under the Contract Disputes Act, 41 U.S.C. 7101 et seq., or any private right of action. The Executive Order provides that disputes regarding whether a contractor has paid the minimum wages prescribed by the Order, to the extent permitted by law, shall be disposed of only as provided by the Secretary in regulations issued under the Order. However, nothing in the Order or this part is intended to limit or preclude a civil action under the False Claims Act, 31 U.S.C. 3730, or criminal prosecution under 18 U.S.C.
1001. The Order similarly does not preclude judicial review of final decisions by the Secretary in accordance with the Administrative Procedure Act, 5 U.S.C. 701 et seq.
23.20

Definitions.

For purposes of this part:
Administrative Review Board ARB or Board means the Administrative Review Board, U.S. Department of Labor.
Administrator means the Administrator of the Wage and Hour Division and includes any official of the Wage and Hour Division authorized to perform any of the functions of the Administrator under this part.
Agency head means the Secretary, Attorney General, Administrator, Governor, Chairperson, or other chief official of an executive agency, unless otherwise indicated, including any deputy or assistant chief official of an executive agency or any persons authorized to act on behalf of the agency head.
Concessions contract or contract for concessions means a contract under which the Federal Government grants a
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