- Category: Widget
- Published on Thursday, 02 October 2014 12:57
- Written by Isaac
- Hits: 112
Minimum Pay Rises For Federal Contracts
Staten Island commercial bank says employers who have government customers are affected
STATEN ISLAND, N.Y. (Oct. 2, 2014) – Businesses having contracts with the federal government will be required to pay a $10.10 hourly minimum wage next year, and the rate will be indexed to inflation in future years.
Victory State Bank, Staten Island's only community-based business bank, observes that yesterday's announcement of the "final rule" by the U.S. Labor Department (DOL) covers many aspects of governmental procurements.
A variety of favorite tourist destinations as well as construction jobs all are within its scope.
A presidential executive order back in February established a minimum wage for contractors beginning Jan. 1, 2015, and since then the DOL says it heard from labor organizations, contractors and associations, worker advocates, contracting agencies, small businesses, and workers themselves.
The order directed the DOL to issue implementation regulations by Oct. 1, hence the final rule's issuance, incorporating definitions, procedures, remedies and enforcement processes.
Compliance obligates not only contractors but also subcontractors who may, in turn, link to lower-tier contracts.
Four categories of contracts are covered: Construction, service contracts, concessions, and services on any federal property or lands. The provisions would extend to any number of familiar tourist attractions.
Among these categories, concessions include food, lodging, automobile fuel, souvenirs, newspaper stands, and/or recreational equipment. Think National Park Service vacation locations and day-trip destinations, for example.
The final rule provides guidance and sets standards for employers concerning what contracts are covered and which of their workers are covered.
The rule also establishes obligations that contractors must fulfill to comply with the minimum wage provisions of the executive order, including record-keeping requirements. It provides guidance about where to find the required rate of pay for all workers, including tipped employees and workers with disabilities.
Additionally, the rule establishes an enforcement process that the DOL says should be familiar to most government contractors and will protect the right of workers to receive the new $10.10 minimum wage.
Executive Order 13658, which calls for the new minimum wage, applies to new contracts and replacements for expiring contracts with the federal government that result from solicitations issued on or after Jan. 1, 2015, and to contracts that are awarded outside the solicitation process on or after Jan. 1, 2015.
About Victory State Bank
VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online atwww.VictoryStateBank.com.