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Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Proposed Rules
so much of the accrued payments or advances as may be considered necessary to pay workers the full amount of wages required by the Executive Order. In the event of failure to pay any covered workers all or part of the wages due under Executive Order 14026, the agency may, after authorization or by direction of the Department of Labor and written notification to the contractor, take action to cause suspension of any further payment or advance of funds until such violations have ceased.
Additionally, any failure to comply with the requirements of Executive Order 14026 may be grounds for termination of the right to proceed with the contract work. In such event, the contracting agency may enter into other contracts or arrangements for completion of the work, charging the contractor in default with any additional cost.
d Actions on complaints1
Reportingi Reporting time frame.
The contracting agency shall forward all information listed in paragraph d1ii of this section to the Division of Government Contracts Enforcement, Wage and Hour Division, U.S.
Department of Labor, Washington, DC
20210 within 14 calendar days of receipt of a complaint alleging contractor noncompliance with the Executive Order or this part or within 14 calendar days of being contacted by the Wage and Hour Division regarding any such complaint.
ii Report contents. The contracting agency shall forward to the Division of Government Contracts Enforcement, Wage and Hour Division, U.S.
Department of Labor, Washington, DC
20210 any:
A Complaint of contractor noncompliance with Executive Order 14026 or this part;
B Available statements by the worker, contractor, or any other person regarding the alleged violation;
C Evidence that the Executive Order minimum wage contract clause was included in the contract;
D Information concerning known settlement negotiations between the parties, if applicable; and E Any other relevant facts known to the contracting agency or other information requested by the Wage and Hour Division.
2 Reserved 23.120 Department of Labor requirements.

a In general. The Executive Order minimum wage applicable from January 30, 2022 through December 31, 2022, is $15.00 per hour. The Secretary will determine the applicable minimum
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wage rate to be paid to workers performing work on or in connection with covered contracts on an annual basis, beginning January 1, 2023.
b Method for determining the applicable Executive Order minimum wage. The Secretary will determine the applicable minimum wage under the Executive Order, beginning January 1, 2023, by using the methodology set forth in 23.50b.
c Notice1 Timing of notification.
The Administrator will notify the public of the applicable minimum wage rate to be paid to workers performing work on or in connection with covered contracts on an annual basis at least 90 days before any new minimum wage is to take effect.
2 Method of notificationi Federal Register. The Administrator will publish a notice in the Federal Register stating the applicable minimum wage rate to be paid to workers performing work on or in connection with covered contracts on an annual basis at least 90
days before any new minimum wage is to take effect.
ii Website. The Administrator will publish and maintain on https
alpha.sam.gov/content/wagedeterminations, or any successor site, the applicable minimum wage rate to be paid to workers performing work on or in connection with covered contracts.
iii Wage determinations. The Administrator will publish a prominent general notice on all wage determinations issued under the DavisBacon Act and the Service Contract Act stating the Executive Order minimum wage and that the Executive Order minimum wage applies to all workers performing on or in connection with such contracts whose wages are governed by the Fair Labor Standards Act, the Davis-Bacon Act, and the Service Contract Act. The Administrator will update this general notice on all such wage determinations annually.
iv Other means as appropriate. The Administrator may publish the applicable minimum wage rate to be paid to workers performing work on or in connection with covered contracts on an annual basis at least 90 days before any such new minimum wage is to take effect in any other media that the Administrator deems appropriate.
d Notification to a contractor of the withholding of funds. If the Administrator requests that a contracting agency withhold funds from a contractor pursuant to 23.110c, the Administrator and/or contracting agency shall notify the affected prime contractor of the Administrators withholding request to the contracting agency.

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Subpart CContractor Requirements 23.210

Contract clause.

a Contract clause. The contractor, as a condition of payment, shall abide by the terms of the applicable Executive Order minimum wage contract clause referred to in 23.110a.
b Flow-down requirement. The contractor and any subcontractors shall include in any covered subcontracts the Executive Order minimum wage contract clause referred to in 23.110a and shall require, as a condition of payment, that the subcontractor include the minimum wage contract clause in any lower-tier subcontracts. The prime contractor and any upper-tier contractor shall be responsible for the compliance by any subcontractor or lower-tier subcontractor with the Executive Order minimum wage requirements, whether or not the contract clause was included in the subcontract.
23.220

Rate of pay.

a General. The contractor must pay each worker performing work on or in connection with a covered contract no less than the applicable Executive Order minimum wage for all hours worked on or in connection with the covered contract, unless such worker is exempt under 23.40. In determining whether a worker is performing within the scope of a covered contract, all workers who are engaged in working on or in connection with the contract, either in performing the specific services called for by its terms or in performing other duties necessary to the performance of the contract, are thus subject to the Executive Order and this part unless a specific exemption is applicable.
Nothing in the Executive Order 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 Executive Order 14026.
b Workers who receive fringe benefits. The contractor may not discharge any part of its minimum wage obligation under the Executive Order by furnishing fringe benefits or, with respect to workers whose wages are governed by the Service Contract Act, the cash equivalent thereof.
c Tipped employees. The contractor may satisfy the wage payment obligation to a tipped employee under the Executive Order through a combination of an hourly cash wage and a credit based on tips received by such employee pursuant to the provisions in 23.280.

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